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HomeMy WebLinkAbout02-28-1995 • w CITY COUNCIL AGENDA PACKET 2-28-95 • i • AgendaEte~.`° AGENDAS CITY OF DENTON CITY COUNCIL CI~ Z February 28, 1995 Closed Meeting of the City of Denton City Council on Tuesday, February 28, 1995 at 5:15 p.m. in the Civil Defense Room of City Hall, 215 E. McKinney, Denton, Texaa, at which the following items will be considered: a NOTE: THE CITY COUNCIL RESERVES THE RIGHT TO ADJOURN INTO CLOSED MEETING AT ANY TIME REGARDING ANY ITEM FOR WHICH IT IS LEGALLY PERMISSIBLE. 5:15 p.m. 1. Closed Meeting: A. Legal Matters Under TEX. GOVT CODE Sec. 551.071 1. Consider GTE response to notice to produce records pursuant to Resolution No. R95-002. B. Real Estate Under TEX. GOVT CODE Sec. 551.072 1. Consider passible parking lot lease of Union Pacific right-of-way near the Denton Municipal Complex. C. Personnel/Board Appointments Under TEX. GOVT CODE Sec. 551.074 Work Session of the City of Denton City Council on Tuesday, February 28, 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: 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 generally receives informal and preliminary reports and 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 • input. Although Work sessions are public meetings, and citizens 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. • ca AgentlaltBn~~~_^_.__~ i Date ~ Should the Council direct the matter be plTCed 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. 6:00 p.m. 1. Receive a report and hold a discussion regarding a report from PHH Fantue on the results of the competitive analysis study. 2. Receive a report and hold a discussion regarding a proposed workplan for economic development strategy implementation. 3. Receive a report and hold a discussion regarding major initiatives from the vision Project. 4. Receive a report and recommendations from the Hotel occupancy Tax Subcommittee regarding proposed funding of hotel occupancy tax recipients for 1995-96 and give staff direction. 5. Receive a report and hold a discussion regarding the Cable T.V. Emergency Override System. t 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 Hall of the City of Denton, Texas, on ' the day of _ 1995 at o'clock (a.m.) (p.m.) - CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL CHAMBERS IS ACCESSIBLE IN ACCORDANCE WITH 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. ACCO0253 • 0 • 4• l DENTON 03 0000FOOO 000 0 c D ~ ~ ° 00` ~o pp QD c) o d o ( o cz] cz] oa o ~ app ODO OOp~ r o N 000 ti 000 00ao~ aoQO00o a CITY COUNCIL ~ . . o • ~pwJANo. -Q Aoft f dj, I l q CITY OI DENTONr TEXAS MUNICIPAL BUILDING @ 215E MCKWNEY, DENTON, TEXAS 76201 (817) 566.8200 • DFW METRO 434.2529 MEMORANDUM , DATE: February 22, 1995 TO: Mayor and Members of the City Council FROM: Betty McKean, Executive Director Municipal Services/Economic Development SUBJECT: PHH Fantus Competitive Analysis Study Carlton Schwab, PHH Fantus representative, will present the findings of the competitive analysis study to you on Tuesday, February 28. Attached are "clean" copies of Fantus' November 1994 Preliminary Report and the January 1995 Final Report. This is the same information previously sent to you, but in a clean, final format. Please let me know if you have any questions. • Belly McKeai Executive Director Municipal S rviccslEconomic Development i "Dedleared to Qua1hy Service" • ~ ~ tr t' ~ a'{ i r t 'r TS~F i.'q Yl~~f • ra • PHOTOCOPY t EEEE E . ~ it] E t h'E~ i f1 t,3 '~~~t J rt j ' EpE, i,try ,i , i elte °tlitt eE tE?{ ~'7<i~'itn Ik1 rT.it < t~ yy !!77 ` ~y ~jyr t E E~. t R ' gttlE~ r~ [I E. 'y1' 'i I t;q ~t ~E~iE,kl E 4~l I S ~ EItE~. ESC ffE~E~a ~ t , E • N~{n ~ f 1 • D • n • • PHOTOCOPY i O• EiR I rl ~{3 r r~ r I t3 f7 k, .t 1 ~4 r E PIOi 1Bf ed Nx X3]1 llt ~ ` t`L 91" ''r t Vii} E E(~ Air It i - t ;r r rl s ~;,rr ANij1 r B i l a 6E ~IE~~ `~t Ye F(m.,11i0(i by p I~ ~jll . t,z r. e ~ • O • • • PHOTOCOPY O. z e 1 , , .Y t }C i tt ,"fit ~~ij( yql;a, ICI+}'>! d ' + 'I c, ~ i r t dt+ t f Ilk: ~ p, E ti J , ti ~~~t t # I'lasaale~! by r i t Et 3 ' 10 + s s IS t~ ,p i dill, m • Qw Oa7 ~ • • s PHOTOCOPY E ~ ~f a M i Ir 1 r~ 11~~x';~ all ~ij~i'C°~ 1E f, lmp~ ,~-B ~~efeb IaVi r r - ° , Kaf ~ R tSi'rl r r A~ I. • sE,l'i-- r j k, e I i AIL M W" ~~k i k s UI I ~ y ' r, r k fr r(~ f Y 1~ IJ~ i • I i i ~8 ' e m • 0 I f Back ,ound PROJECT OBJECTIVES The Denloi I 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 Denton's efforts. Our specific mission in this project has 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 • Specific assessment of Denton's existing marketing and retention programs I i • Identification of possible economic development strategies for Denton and related programmatic and operational Initiatives ~ F M Urnlcm .January I9V) CONFIDENTIAL 4 I'llil I ~Olll! Cunsultlnp • • • E3ackr round PROJECT OBJECTIVES The Denlon Chamber of Commerce and the City of Dental retained PHH Fantus Consulting to evaluate- Demon's competitive position for attracting and retaining businesses; to critique the City's marketing and retention programs; and to identify possible strategies for enhancing Denton's efforts. Our specific mission in this project has 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 compe',aor locations • • Specific assessment of Denton's existing marketing and retention programs j i • Identification of possible economic development strategies for Denton and related programmatic and operational Initiatives J;uniary ly4!^` CUHFIUF.H lIN. ^ !'1111 Foolsls Coossulling • Ga O • z 1 T I { E)~ickar nu rid ; I i PROJECT APPROACH • 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 presented our findings at a briefing held in Denton on October 21, 1994. Specifically, 1 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. 1 • A report containing the Key Findings covered in that briefing was submitted to the Chamber in November 1994 i • In late November 1994, PFIf-1 Fantus Consulting presented a discussion document that addressed Workstep Three of the PHH Fantus Consulting proposal. Specifically, we critiqued Denton's current econoric development program, and >v1 z 1 utilizing the data generated during the first two Worksteps of the project, preliminary 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. - 9 Jdnudry Ilt'1`i Cold°IOI:NfIAI 5 I'llll Vanlus Consorting M_L3F%rkgIotjnd PROJECT APPROACH (CONT'D) i • This Final Report, the findings of which were presented at a January briefing, builds on the Workstep Three briefing and provides more detailed recommendations, addressing earlier points raised during that briefing, the public meeting, and the January briefing. i • • 1 Unnlon January IOS15 "J"-""" CONFIDEN NAL 6 PI II I Mmins CousalllnK • a> • „~aarr...r.vr~:a!rv,ua.r..r,...asy<n.:Mnti'1vAa'.'M'xbbi'BNfeN,e ti°s1. itt•tk'~1P`N, i Neck round PROJECT APPROACH (CONT'D) • This Final Report, the findings of which were presented at a January briefing, builds on the Workstep Three briefing and provides more detailed recommendations, addressing earlier points raised during that briefing, the public meeting, and the January briefing. • i January IEIOS C ONE INE N I IAL I'l111 F~nln~ ('oniulling lki 4 ~d ~ rr Irrrrba~ ! -3t Ar~h,lti9t~S7 K~Lt rl ~''r' • • v r -a t t 4nq rr r r t r a li t • Cd • • 9 1 liackgraund REVIEW OF 57RENGTHS9 WEAKNESSES, STRATEGIC OPPORTUNITIES, AND STRATEGIC THREATS In the Workstep I and 11 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 impart on Denton 's economic future. Below we summarize the key points identified during Worksteps I and 11, which must be considered in analyzing existing economic development efforts and determining how to move forward. S'fRENGTH5 AND sTRATEGfC OPPORTUNITIES • Attributes of a university city with a hometown atmosphere and access to resources of the Metroplex • The presence of major universities • Favorable labor market conditions, especially a plentiful high-quality workforce e ddd • Relatively low office labor costs and a location in a hotspot for while-collar office location activity • Excellent transportation access, especially highways and air • • Central location for participation in NAFTA-related trade • • Abundant available land S' CONFIDENIIAL 7 1'UII Paulus ('uusulling • O r - - - - - - - - - • c~ • • Back round I 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, Denton's distance from Dallas • The VISIONING process as a foundation for a collaborative community effort to t define Denton's future • A number of businesses satisfied with the investment environment in Denton WEAKNESSES AND STRATEGIC TNRE TS Lack of fully-served parcels of land, spec buildings, and prices for available lots I • Lack of image and business awareness wil'hln and outside the Metroplex • Indecision about the relative merits of tying Denton's destiny to its relationship with Dallas • Economic development program that is not structured to compete with higher- powered competitor locations • • Northward creep of the Metroplex L rd, may restrict Denton's ability to dictate Its own future i January 1995 - ---.r..v-__-_~.---------- CONFIDEN f IAL ~8 I'IHI I'1rrr11S CunsulriuR • ra • • ELBackiolind i 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, Denton's distance from Dallas • The VISIONING process as a foundation for a collaborative community effort to define Denton's future • A number of businesses satisfied with the investment environment in Denton WEAKNESSES AND STRATEGIC THREATS • Lack of fully-served parcels of land, spec buildings, and prices for available lots • lack of imagE ar I..isiness awareness within and outside the Metroplex • • Indecision about the relative merits of tying Denton's destiny to its relationship with Dallas • Economic development program that is not structured to compete with higher- powered competitor locations • • Northward creep of the Metroplex that may restrict Denton's ability to dictate its own • future i w January 1995 CONIJf*NIIAI. 31 8 1'1111 F•utus Consulfing • m e e hA 8ackr round • a REVIEW OF STRENGTHS, WEAKNESSES, STRATEGIC OPPORTUNITIES, AND y STRATEGIC THREATS (CONT'D) 1 • Available inflll between Denlon 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 {k Local manufacturing wage costs that do not provide a marketable advantage • • Location outside the most active national search area for manufacturing locations ANY CONSIDERATION OF DENTON'S ECONOMIC DEVELOPMENT PROGRAM AND FUTURE STRATEGIES MUST BE UNDERTAKEN IN LIGHT OF THE ABOVE FINDINGS e ~ • O b .Innu.nY 179'i CUNFIllfN1IN_ - r i 9 I'H!! M'Aulds consulling r c> • • =-aa. ckUi o un (I 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 • While Denton will not be able to eliminate all weaknesses or ttrategic 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 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. • 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 • Denton's civic and business leaders have recognized that their City is at a crossroads: it can work to cor:rol its own destiny from an economic development standpoint or be overrun, sooner or later, by commercial and residential development heading north from Dallas • • While a consensus seems to be developing around the position that Denton may be o an "underperfonner" from an economic development standpoint, given its assets, Aolmmy 19W, CONI ItA N I IAL i 1 lu !'FN! I~nIUIS Cnrrsuitsng ~ e • c> • • Ilarkylmunl ! 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 • 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 that now exist or should exist in the future, In total, the City presents a strong 11 economic development profile for targeted industries/businesses, one that compares t favorably with likely competitors, • Denton has managed to prosper and grow to the present day in a manner seemingly f satisfactory to most residents, having been spared major r%rtses that could affect the community's quality of life • • Denton's civic and business leaders have recognized that their City is at a 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 e • While a consensus seems to be developing around the position that Denton may be • an "underperformer" from an economic development standpoint, given its assets, ~ o Ileiluu ti t ti. I,uiwuy IfNI!f~ CUNI IIII:NIIAI. ,y ~ ~1 lu f'HII I~anhls ('nnsultiug ~.J 4 0 • • • R EFlack round 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) even the City's greatest boosters must recognize that there are limits to what any economic development effort can 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 course, 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 • 1 • - - N January CONFIVENIIAI. I I ri ru r~rrrhu t'onxuginR • 0 N r • sz~ • PHOTOCOPY r ~ I It t b p.e~ r l1 s tt i I t t EI ltl ~ t~ ~ 11111 t tq i t ! t i i .SIN E a s t r. p t(t i t t t 1 1; 17 a ; a 71f EE ti t i~ i i i s ~ 3t i I r y 1t y tt t1? ! t t t l tir ~ 3 i i sy : E i slit 1 itll ~ t 't t o I^"• r ~ i~ f~ s 'NI~~Etyl s ~ 1 3Et I t 11 I m~i✓ V( t t t ~1 ~ e t a 14 iN ((I 1 t +N! SI ! t r tit il~id 71 ~Fa nyn~i ~tC~ ~ 11~t ~`ti ~Nb~ t~f.~ ~:i E'tsF~E! ,~1ni, I1 t~>r141~r J i t } ai tl 131 se ii e qq 1 t j z t B t t I r r ~tl EI aE r ~ 1~H~~ r S3 a}' 1t t1 kli ~r ~r Y 1}N~ {sr p I kA i t t a e t t l~l E' Et~ t~'. kt tJ i t L 3 Etl it, t I~Ga ~ E t E t ~E ~i E ~ ' ' E C ~~~,;~r tit it r J t'A 3 ! ~ ~ a ~'t1i ~ E ~~~~il '1 I { t ✓ t ~ ; ~ ii :rt.r%J,11' v,t.?-1.IE~1~l~, 1 ! ~~~.,t t„ sr t 1€tt € et q'r, t c E F.ri Ntt, i jt. it STRATEGIC RECOMMENDATIONS 1 i q It'll s 1 t E ! 1~~, t~r} Ik, n ~E ~sl ~rl {I ~ t } ay~~a! E r ~ Ijs ~3 ~i111~,tE,j jt,op I E1 ~lt ~~pp" ~ ]7 ~E i F3 I stli 01i E ~fa t~hti i 5 i ~ ,f~ ss (I 1~1 Elt.t y~~ {~1 i li1 ~'l;r 1st h' ~i'j'ti1F r I'p t if '"I ~ i~~1 ~I 1, la; 9 C - ~ 3 rt ~ 1~ Ar ~ S "tl t ~ ~ t I~$d ,i ~3 F sl ! ~'s ~3 tt.: t t~~t t r ~ ! 3'! I l~ r e~ r z ttS~. P ~1E i. i' E ~l ltd r 3 • IP ~~'r ~ 1';j~ 4''k l~ r ~1 ~ f s I i~~i~~~`i~ ,F a3 Er i s 4~ t i i i ' r . Rte 1 € 3~t i S'i~%I e • Jarmaiy 1996 CONFIOENIIAL I 12 fill I FuHus ('unsulling m • • PHOTOCOPY r,i 3S~ %lth`~'l t'All .i tfii hI t ~}~~r~t~ 1';'6++, t t, i~i. fri I,.I~t~ii 11 li ri •t( ~~at71€ I i~ aloti .INiE✓S~jtl~~,~ a ' i n ql ~rd,ii ~klr~lc IW 111 c t i ( 4 aB gel rr ~a . ~l` E 1~(~ ur J' lr l`If a .,r iE~~~ t I ~`3E I I • ' rj r ~~~Iti ~'y, i (i i ~ '~`~rl t, i w ,lanua,y 1x395 COMIOEN N AL C7 (X~ 12 I'Ilil I''~IlIII%('unsuHluq • • Shale ir. Recanmendalions OUR RECOMMENDED STRATEGIES CAN SERVE AS THE BASIS FOR THE ONGOING BRAND-BUILDING PROCESS THAT MUST OCCUR r • This Report has been structured to provide the Denton community, and especially its business and public sector leaders involved in economic development, with a foundation Ior 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 • Specifically, in [his Report, we will: Describe the brand-building Critique the current econorr.'prdevelopment programrand makeor Denton 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 addressing particular weaknesses and issues January 1995 CCWDENIIAL r (/1 l ~ I'f II I l+rnl•:;z Cunsullin~ ~1 • • • ~ ® t31wte4ic Recommendations OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINT"): • Revamp the economic development program thljugh establishment a new organizational structure, the raising and expenditur3l of more money, setting appropriate expectations and managing to them, arri a fr ;us on brand-~Clcling • Establish a brand image for Denton, at least withir exas, as being a stal ld-atone, university community with a hometown atmosphere that is close enough to Dallas to offer businesses the critical advantages inherent in %`ng in the Metroplex Region • Adopt an account management process, geared towa retention. ' t focuses on anticipating customer heeds, addressing them as quickly pc.:. ,le, and encouraging expansion activities of existing businesse.•, • Better leverage of the assets that most distinguish Denton from competitor iocatiuns y --its institutions of higher education and its university city setting and environment • • Enhance the Denton product by, among other things, improving infrastructure, especially avaitable 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 Janumy MS CONE D NFIAL 14 I'llll r+•ulus Consrdli ig I~ I , • e Y~ y Sli ule~IC Itecununandelrons OUR RECOMMENDATIONS REI. TE TO THE FOLLOWING PIAJOR r INTS: 1 i • Revamp the economic development program thruugh establisc.ment of a new y organizational structure, the raising and expend,~,_-, of mo - honey, setting appropriate expectations and managing to them, ur d a foc . n brand-building • Establish a brand image tot if n, at least within Texas, bL,ng a stand-alore university community with e h town atmosphere that is ; s , enough to Dallas tr. offer businesses the critical a stages inherent in being h, , . Melroplex Region I • Adopt an account management process, geared towards retention, that for as on anticipating custorner needs, addre" .-in as quickly as pc-sible, and encouraging expansion activities of existing businesses • Better leverage of the assets that most distinguish Denton from competitor locations --its institutions of higher education and its university city setting an,4 ^•-Jironment • Enhance the Denton product by, among other things, improving infrastructure, especially available 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 1 W, renlnn _ January 1995 CONI I Di N 1 I At ' ~ r 14 I'Ill1 F,IOhIs ('onsidling O O • w • • Shale rc Recomrnendalrons ~ ' OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINTS (CONT'D): j Ensure that Denton's high quality, ample workforce remains a critical asset to existing businesses end a lure to new investm( by providing training opportunities and linking businesses with programs provided by the educational institutions CS Denlan January 1995 ` CONFIUENHAi O4 !5 PFIlI P•nha Cnnaullbl= ti • • ry.. F • GIN • • Sluala c Recommendalmns 9, DENTON'S ECONOMIC DEVELOPMENT I-i20GRAM SHOULD BE REVAMPED TO MAXINiiZE THE CITY'S OPPOF' UNITIES EOF bHOk f AND LONG-77:M GROWTH • ^ .,.,ones r en' cononrrc cevelopment piogr - n, a coordinated effort between the :d the City, has s v> Denton well )articularly in performing traditional ictions . ch as hosting pros[ +isits and a coding trade shows • )rtain aspects c ',,he current progf. are >nducive to .,ess the b, ling member B ird, with additional ot, iembers, is ur,iecessarily' ,e Corr,, 1cation bf Aen pr(-, sip, economic r •a!lopmepO , and the ,As not be pecially )i, j - Adequate funding for a commuoity of Denton's sixr.. Alas been unavailable to the program • With the econo. iic development landscape dramatically changing, a more focused, well-funded, and strategic r-.`rort i„ „quired to nodintain a solid, desirable pace of development in the face of strong competition on a regional, national, and even • international basis • 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 improve its quality of life, although disagreement exists as to the exact form • economi-; 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 Jdnumy 1~tllb CUNI10ENVAL IG i'llll I~enlua Cunsnlling • • `z Skala u; kvcorumrn'' ' nns f( 1. L ATON'S ECOf, iMIC DEVELOPMENT PROGRAM S-IOULD BF PEVAMPr:D TO I MAXI IZE THE CIT' S OPPORTUNITIES FOR SHORT AND LONG-'I _F;M OF -,WTH Denton's curr it econorY.rc development irlram, a coordinated effort betw( ; Chamber an- he C..,, 'las served Dento, all particularly in performing trae X. functions sG it as f i, 'ospect visits . tending trade shows • Certain as acts of the cnrren► program are not conducive to -cess the h' -~nty- voting Mr )er Board, -h -1clOtional ex-officin members, is necessarily la o ,ommunication men profession, oonoml, ivelopment slat. It d the has not _ .,specially strong Adequate funding for a community of Denton's size has been unavaila:,ln to the prograr • With the economic development landscape dramatically changing, a more focused, well-fonded, and strategic effort fs required to maintain a solid, desirable pace of I development in the face of strong competition on a regional, national, and even • international basis • 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 improve its quality of life, although disagreement exists as to the exact form • economi 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 og ' n ' CUNT IIIENfIN -+'(S ~ lJl 16 !'ills I solos Cousullisk • • ~.=.hategic f2econunendehons ...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH (CONT'D) significant portion of the community would probably be satisfied with minor changes. To accomplish Demon's goals, certain principles should be established as the foundation for this effort; • Efforts to hire 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, 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 creating conditions conducive to their expansion. In the context of the brand management approach to be discussed later, an account management system must • be put into place. i • Inclusion of all elements of [lie community in the economic development process will maximize the chances for its success 6 • Attendance at trade shows and traditional advertising should have a ftinited place in 4 i Denton's overall economic development campaign C - - .)illlllafy f995 CONEIOENTtoL 17 P!!II FAaws Cnnullii g • O • a> • shale Ic Recornmendal Ions ...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH (CONT'D) 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? i • • I)enlun January 1996 CONF IDEN I IA! IR pllll Panful Consulting • ea r r;. „~:rs .i., --s+; u ~r. . n...., r.._,... rnnevn.....rrfir.r.rw.vn~.nr-•.wru.nay:K.atnw.~.>ee.iinewnm. l Strategic Reromrnendalirnrs ...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH (CONT'D) I i Key Question: In order to address Demon's key weaknesses and strategic threats, and best position the City for strong growth, how should Denton approach economic development? I I ~l Ilenlon _ January CON Fl IK N I I/U. IR I'llll P'aalus Consuhln~ • . - --T w _ -ir~. r r~ i.~i,. yr ii {/4{K~ rr a*^i+.~l'~.. • • • MUS-1216LIc Recommendations DENTON MUST ENGAGE IN A BRA IV-SUILDING PROCESS TO HELP ENSI RE LONG-TERM ECONOMIC DEVELOPMENT SUCCESS • Brand management is the process of refining produr, Mures to mF.. market demand, communicating the right product benefits tc ~pects mo ' likely to a sire the product, and then giving then ustomers a reaso I continue purchas ,t. Powerful brand names (e,g. Coej Ala, McDonald's) associated with pr auets that provide strong benefits to cus(omers, help to ger, ote Interest (attrar .)n) and, if properly managed, sustain loyalty (retention). Brand interest is generated rough custr ,er Identification with the benefits a product, such as the Silicon' ,,ley, provides Brand loyalty results from customers identifying themselves with a particular brand A product does not become u 'brand" ,ntil it is successful in attracting customers and keeping them over the long term • Denton should adopt the strategies of braija management for its own use, which will • require a shift of perspective and building on some components of the existing economic development program January 190.5 ^ C0NFIDE M 1IAI. Y 19 Pill I FAnws Ca+solling Gd i i a Slrale~pa Roc,unmandalions a DENTON MUST ENGAGE IN A k'~'RAIZ-BUILDIt){ PROCESS TO HELP ENSURE LONG-TERM ECONOMIC DEV't-OPMENT SU( _SS(CONT'D) t • T, mpete successfully, .pine other cities inside a, of xas, Denton RBI (.efine, among other dnci, - What it want ~ be Who its prir customers are - What will n vale these customers r l • . ne site location m= atplace has hundreds of organizations (suppliers) competing primarily on price f_ a relatively small universe of customers • By treating itself as a product and brand to be man, 'Pd. Denton can begin to build a differentiated position that helps to ensure the flow of capital investment into the 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 e the attraction of companies e Differentiation is the process of identifying product benefits, competitive strengths, and needs of market segments and using this information to distinguish a product from its competition January 1995 _ - I CONFI f )E N f IAI. 20 I'llll Poulos Cuusulliq • a • • f 5lyda Ic liecommen A~thons DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE LONG-TERM ECONOMIC DEVELOPMENT SUCCESS(CONT'D) ,t 1 r • To compete successfully against other cities inside and outside of Texas, Denton must define, among other things: 1 What it wants to be Who its primary customers are - What will motivate these customers • 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 the • 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 Differentiation is the process of identifying product benefits, competitive strengths, and needs of market segments and using this information to distinguish a product from its competition i ent(i ri ,lalllidly IQtlj cONFri)ENNA1 t3. I 211 I'INI 1411411S ('uusulliu~ a o A A e `k EL-si-18-lemc Recommendal,ons ,a DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE LONG-TERM ECONOMIC DEVELOPMENT SUCCESS(CONT'D) '.o:: . ,-.lopment and implementation of the differentiation strategy most be ca, ufWi managed or the effort will fall r )sitioning must be meaningful to the customers you are trying to attract 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 • Demon h January IJ95 O f, ONF I1* M11AL O 21 PIIII I+ullus ConaullinR • ra • r 9hnlee is Necmm~mndal~nns ' DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS i • The model of private/public cooperation that now exists is a solid foundation for JJ~ future efforts in that it recognizes the need for buy-in, and lice potential value of 1 contributions, from different segments of the community. However, the current structure is too unwieldy and the roles too undefined to achieve the maximum positive results for Denton. ! i PI-111 Fantus Consulting recommends that Denton consider adopting the economic j developrrrnt 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 I • Under 4A of the Development Corporation Act, Denton could impose the tax, after receiving voter approval, for a wide range of possible activities. Possible ' approaches, already tried by other Texas communities, include purchasing land, building, and equipment and paying principal and Interest on debt, One likely use of available funds by Denton would be for development of a business park. t4o"Alw 06" CONNOLWA 21 r'Inl N'aWnConsulting • A • c:a • • f f ;Blalc~u: ltrcununendahnns f i' Y DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS i i The model of private/public cooperation that now exists is a solid foundation for • future efforts in that it recognizes the need for buy-in, and the potential value of contributions, from different segments of the community. However, the current structure is too unwieldy and the roles too undefined to achieve the maximum positive results for Denton, f • 11-I11 Fantus Consulting recommends that Denton consider adopting the economic development sales idx 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 f • Under 4A of the Development Corporation Act, Denton could impose the lax, after receiving voter approval, for a wide range of possible activities. Possible j approaches, already tried by other Texas communities, include purchasing land, building, and equipment and paying principal and interest on debt. One likely use of available funds by Denton would be for development of a business park.' u j IV N n • w ~v l LON[ Illl 101 A 22 Ylnr V•uhls {'(IIIsuflill g • O ' • • Slral er is (7ecuuuueurlahurts y DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING I1111 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. • Although use of the sales tax proceeds would result in heavy public funding of the 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 riot 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 describe 111 three communities approaches, each of which can have merit depending on the specific: situation and n creeds of a city. The key for Denton, regardless of the structure chosen, is to have a better-defined, bette Q, c funded version of the current structure, that rnerges the interests and strengths of the public and private sectors larwaey 1446 - C(MI 1111:N11 1. 5 7S ~ I'Illl F*01 III (bnsnIIhIg • I° w • I 1 • Strategic Recommendations l 1 DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS (CONT'D) • In thinking about the structure, attention must also be paid to the necessary budget for the 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 people have an average budget of $167,000 while those serving communities of 75,000 to 300,000 people have average budgets of $371,000. On a per capita basis, a community of Denton's approximate size should have economic development expenditures of approximately $2800 per 1,000 residents i • On the facer page, we have listed, for purposes of comparison, the most recently available f 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, • Owdoll January 1995 CcNlfll~N11AL 24 PIIII Fanius Consulting f • m • r Strategic Necommeu(lat,ans DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS {CONT'D) • In thinking about the structure, attention must also be paid to the necessary budget for the 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 9 people have an average budget of $187,000 while those serving communities of 75,000 to 300,000 people have average budgets of $371,000. On a per capita basis, a community of Denton's approximate size should have economic development expenditures of approximately $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. e N • in r C~ 1 , lanun,y ril)y CONHOUNTIAt. I'llli h'~nlus ('uns»Ilin~ l,A Y" • Si,;~t f ~~ar, • f, as" v0 w o • z i LS Iratc sic Itrcouiuicndaliuns.., i w r~ WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES: a • 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 them 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 i 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 „i <<5 to ombudsman position to ensure cooperation with business e - Develop,ng an appropriate incentives strategy that will help meet Denton's needs O and be meaningful to the kinds of businesses Denton decides to target f lenlun . _ CONFIDENTIAL - 25 1II11 I'anlus consulting O 0 5lrxleglc Necommendalions WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES (CONT'D) • Involving top business executives and government officials In the brand. building process Identifying important issues businesses face and exploring ways the Economic Development Corporation can help to address them 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 j consider locating in the City - Developing a promotion strategy that targets specific markets • Building an ongoing strategic planning process within the Economic Development Corporation that anticipates and analyzes developments that effect Denton's competitive position e • Jrmnary I{i95 CONE )ENTIAL 26 I'llll rit"lus Caufsulling O • w • • halernc Itecauunrndahnns ii WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES (CONT'D) • Involving top business executives and govenoment officials in the brand. building process Identifying important issues businesses face and exploring ways the Economic Development Corporation can help to address them j 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 markets • Building an ongoing strategic planning process within the Economic Development Corporation that anticipates and analyzes developments that effect Denton's competitive position hr L d5 n, n, m e N • January r C(kl41UENfIAL lN. n ~f' I'llil M'auhrs ('un~alling GO 1 0 W~ 0 r Shator rc ficcantrnendnhuns 2. THE ECONOMIC DEVELOPMENT CO MANAGEMENT SYSTEM TO HELP IT ANT CIPAATE AND ADDRESS BUSIINESSCOUNT `r NEEDS, AND ASSIST IN THE RETENTION OF COMPANIES • The Economic Development Corporation must establish 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 Dentoni Must proviae information that is meaningful to customers. For example, for businesses with export potential, the Economic Development Corporation can provide information gathered from various sources on upcoming trade fairs, 3 exhibitions, trade missions, and other international business activities. j • • The Economic Development Corporation should assign "account managers" to businesses for the sole purpose of meeting with their management to understand 1 needs and concerns j Account managers would work through an accorlnts, coordinating and assembling the problems ret oulrces to respective ® resolution D coo 9 achieve Utilizing an account manager approach doss not require a large staff one or two Z individuals would be an adequate force for Denton January 199!) - - CONFNIE N I IAL i 27 11111 !'0111113 Cotisidli11g • 0 • c► • Strata is Recornmendairons i 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 (CONT'D) I - In addition to account managers, an ombudsman or similar position should be established with responsibility for serving as Intermediary between Denton j municipal regulatory units and prospective investors (see later discussion) J • The internal system of resources should be continuously adapted and improved to ensure that each resource is designed to most fully support the account management effort • J .lanuary 7495 CONFIDENTIAL 28 PIIII FRnlus cousuhing L ~ • • 1.lrt+.f1=.dN.,q,....vcrzy)w.x11M'✓f+VN Nf.1.Y!N'..NX!1.MY wht~'..WV1:v..11 MnM!!Rf`YN\NHY;h d.(A\N: 1 i t Slialeyic Rvcommendalrons 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 (CONT'D) In addition to account managers, an ombudsman or similar position should be established with responsibility for serving as Intermediary between Denton municipal regulatory units and prospective investors (see later discussion) • The internal system of resources should be continuously adapted and Improved to ensure that each resource Is designed to most fully support the account management effort • ,Ianuaiy 1995 O CLWI )ENIIAL 1I4 1I111 F1lntus rbusulfulg • a • Shale is Recwnmendalions 1 THE ECONOMIC DEVELOPMENT PROGRAM MUST ENHANCE THE DENTON PRODUCT BY, AT A MINIMUM, ADDRESSING SEVERAL CRITICAL ISSUES; • Developing a brand image • Strengthening connections between Denton and its universities • Improving business/public sector relations snd the regulatory environment • Enhancing existing infrastructure i • Maintaining a quality work`orct • O` January 14195 CONFIDENIIAL 29 I'!IR !)tallllq Conmll+ng ~ .r I c, • e I Slralr.~ic Recomn+nndalioris 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 Metroplex, 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 (lie 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 reflects some reality about an area, even if not the entire story p - 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 Iikeiy 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) e successful civic initiatives (controllable) e climate and geography (uncontrollable) r,r der COMP IN, 'IAL 10 PIIII FeBhis CmisIIIIItlk • c> • • Slrnlcl is (!Cut 0)4 n endu 11011 a 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 Metroplex, 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 reflects some reality about an area, even if not the entire story - 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 lik6y 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) successful civic initiatives (controllable) • climate and geography (uncontrollable) r' e - CP:1 Jan uo,y 14t1b cONI UX NIIAI. I 10 PlIII I+arrlus Cmisulliok i • O • esa • • r On-s-Ila-tel-IcRecanirno ations CONTROLLING PERCEPTIONS OF DENTON IS CRITICAL TO THE ATTRACTION AND RETENTION OF INVESTMENT • The underlying product must match the image being marketed • Denton will have to make "external" improvements, which relate to how the city is presented to investors • Denton will also have to make "internal" improvements, which enhance the actual product Key Questions: What should Denton's brand image beg Flow should that image be established in the minds of customers? What internal improvements will be necessary to make image and reality consistent? • • m • Denton January1995 t CONFIDENTIAL I P1111 FAII1115 Cnusulting O t; , 0 • ~ w. • • SlralgicRecornmaudallons 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 Metropiex'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 commaicial leasing - Encourage local public officials/citizens/business leaders to actively seek appointment to appropriate policy-making or representative bodies in the • Dallas/Fort Worth area - Make effective presentations, in-person and through written materials, to the Dallas Chamber that highlight Denton's brand image and distinguish the City, in the minds of key Chamber staff, from other Metroplex communities - This effort should involve the Economic Development Corporation's Board and staff, as well as other interested community members, and can begin even before a • 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 r ~nnlDn January )9M CONFIDENTIAL 32 I'll!! I anhTS coosullink • c~ • • r r i -i a Slrala~u; Racumrnendalums i 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 C 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 i 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 Encourage local public officials/citizens/business leaders to actively seek appointment to appropriate policy-making or representative bodies in the • Dallas/Fort Worth area Make effective presentations, in-person and through written materials, to the Dallas Chamber that highlight Denton's brand image and distinguish the City, in ; the minds of key Chamber staff, from other Melroplex communities n - This effort should involve the Economic Development Corporation's Board and 6"t staff, as well as other interested community members, and can begin even before ? • r, the new structure is in place W , - Explore ways in which UNT's School of Community Services' involvement in W Melroplex issues can be used to showcase Denton Jd nua+y I!I!1!r ~ . CONE i[xNrw. p QQ 12 1'1111 ihulus 1'onsNlliug • w • Slralrp¢: liccuinmmndahuns i PHH FANTUS CONSULTING RECOMMENDED STRATEGIES--BRAND IMAGE ENHANCEMENT (CONT'D) • Increase Denton's overall visibility - Leverage UNT's intercollegiate 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 segmented the market and determined the kinds of businesses that should be recruited Highlight the universities and their strengths, through events like a national music festival at LINT 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. • • 7 • - o 1 _ - - - fi Denton Jarn+ary 1005 CONFIUENIIAL "p 0 00 11 1'1111 Fenlux 0101sulting I F' FY ~~I 1. . • ~ w • • SUalegic ltecnmraendalmns 4. LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLE:X, AND MOST OTHER, COMPETITORS WITH SIMILAR PROFILES • 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 anique attribute of Denton's that can be used to create economic development opportunities, serve as a lure to potential residents, and help solidify the City's brand image. The Economic Development Corporation can also help enhance the respective images of the 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 benefiting the universities • • 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. College libraries can provide research services and information on a wide range of industries, and professors frequently offer services as consultants • The educated labor force can benefit businesses in many ways. New graduates Urnlnn January 1995 RONT I DE NT I At. 14 I'MI FaMiss Cons( lling • • • Slralequ: I2ecnu+menJalmns `~Q~ ~i 4. LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR PROFILES 1 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 solidify the City's brand image. The Economic Development Corporation can also help enhance the respective images of the universities. 3 s • 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 benefiting the universities • • Companies often pre,ar 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 l slart-.Ip: and smaller companies that cannot afford too many initial expenses. e - Coll%ge libraries can provide research services and information on a wide range of r u industries, and professors frequently offer services as consultants • The educated labor force can benefit businesses in many ways. New graduates W ` w t 4rnlnn ~ r Jan Vdiy 19!IS ~ y ~ CONE II}F NIIA1. ld I'llli I~mHus 1'ousulling • ra • j ~J SIMIellc Recommendations LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR 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. Many corporate location decision-makers are attracted to communities with j 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, s • The mere 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 n just as interested in local wage rates, for example, as university resources. The universities also give Denton an opportunity to include customized training, one e of the most sought-after incentives, to businesses considering relocation to Denton, -r_ a • w ° well as existing businesses that might otherwise have to move to obtain the skills ~ needed for their operations. l aviary Ig4i', ,t ~ CONI IUF7111N. 35 14111 hmhls Cnnsurlhig • 0 • • • 89aleglc Recommandatlons.., i LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR PROFILES (CONTJD) c Key Question: How can Denton and Its institutions of higher education work cooperatively to their mutual benefit? • ilenlun - January 1995 CONEINNf AL 36 I'llll NnNw Consulting • tx~ • • r t ELSliate lc Recommendations 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? • :J d WIF IIXN 11AL t l!' 1'l ll I ! atmns ('uuanlliug op • A ` ~r • c~ • Shale is Recmrnnenrl8lrons P1 Ili FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES 1 • Institutionalize mechanisms for enhancing town-gown relations Ongoing activities involving members of the university communities and the Economic Development Corporation must be instituted. Underlying these activities should be the principle that the City and universities can benefit each other, 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. a Attempt to identify "lessons learned" by universities in their studs, it/faculty recruitment effort that may be applicable to Denton as a whole • Institute a joint economic development effort,.0th one or more of the institutions • NTRI could serve as a linchpin for such an effort with UNT, given its stated mission of enhancing the University's interactions with the business community ` a, R a A I A W • 00 Z v January 1995 CONFIDE N f IAL 17 1 fill FAnlas Consufling • O ,r • ea • • I Sbaloyic Runmrnenda9ons I i PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONT'D) 3 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 existing university strengths or areas in which the university would like to move. j 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 park Create a joint task force to pursue any such targeted sector(s), This effort could include, among other things: of 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 experts/labor • Consider TI facility (if not otherwise occupied) or other available land as a possible center for this effort e • 0 nn1 o n Jannary 1+J95 CONFIOBTIAL IN I'Illl r erUus r'nnsuitiug • 0 s • • Slrologic Neronimundations PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONT'D} 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 existing university strengths or areas In which the university would like to move. Ultimalely, 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 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 experts/labor • Consider TI facility (If not otherwise occupied) or other available land as a possible center for this effort .lanuary I!1J5 ,.fl re CUNT IANTIAL U~ v0 ili I'INI M'nNlus 1'nnaNllDtR • d 11 • • • s Slralegic Reconvnendalions ,r PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONK 'D) • Design a public relations program that simultaneously enhances the universities' respective Images and Denton's brand Image Include major references to the universities in new economic development materials created by the Economic Development Corporation, especially regarding the top-class programs such as UNT's accounting and TWU's nursing and physical and occupational therapy programs Jointly sponsor evenly, such as conferences or symposia, intended to bring dedslon-makers from targeted sectors, such as accounting and information science, into Denton • O' January tU9fi CO WIDENNAL 1 ~'1 I'lll l 1' NIIIIIR ~ •IlllSllll~llf~ ~Q i • ca • 0 Shale i~ IlCCU111111BnAa11Utl5 i i 5. 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 l • Any community of Denton's size will suffer from some friction between municipal officials and reg latory agents on the one hand, and the business community on the other. To the extent that the±+ are unavoidable, they should nevertheless be minimized and addressed through appropriate mechanisms. i • The tensions between City povernment and the business community have received significant attention from the media and interested parties. Based on our research, E we believe that the problems that do exist are relatively minor and within reach of solution. The perceptions of the magnitude of the problem far exceed the actual severity. o Our review of Denton's land use regulatory scheme indicates that it does not substantially differ from those of many other communities in its approach or j objectives, although it may be more specific in the requirements Imposed on developers j • • Real issues do exist. At the crux of the situation is the fact that key players in the Denton business community strongly believe that the regulatory process overseen by in,nuy tsar. GON1 NANIIAI. 40 1'1111 Fenlus Consulting • d • 0 • z Slrolol u. liecununeudnbuns 5. 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 • 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. • The tensions between City government and the business community have received significant attention from the media and interested parties, Based 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 far exceed the actual severity. • • Our review of Denton's land use regulatory scheme indicates that it does not substantially differ from those of many other communities in its approach or objectives, although it may be more specific in the requirements imposed on developers m ci • • Real issues do exist. At the crux of the situation is the fact that key players in the • Denton business community strongly believe that the regulatory process overseen by r 4n I'llll I~nnlus ('uusulling • 0 i y i • • • } Sbate is fternnuuendalions 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 t (CONT'D) staff, especially the Planning and Zoning Department, is one of the major impediments to further growth. Again, while the reality of the situation is not nearly 1 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 elements of the existing situation should be addressed; Personality Conflicts between 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) - Some Metro lex-are P a developers have experienced excessive delays in accomplishing certain projects. r' S .C k(lar, - r I;uwaiy 1905 COM IOUN I IAI C,p I dl I'Illl I Rnkls ('nnsuhlug Oq • 0 • s~ • • Slrelo is f2econunpndalwns i ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TO IMPROVEMENT OF THE REGULATORY ENVIRONMENT AND DENTOWS (CONT'D) i 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 I • 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. I-low can government officials and business community leaders work to ensure that the City's regulatory process does not become an impediment to Denton's future growth? e • CUNT iIN NIW I'IIII I+Nn1Nx 1'NNSnIliu{,{ 1 • • ,f Slralesic Rcamm~nndalinns ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TO IMPROVEMENT OF THE REGULATORY ENVIRONMENT AND DENTON'S (CONT'D) • 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 • 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 i So long as tilers are problems and tensions in this arena, or the perception of such, • Denton's economic development initiatives will he negatively affected. i ; Key Question: How can government officials and business community leaders work to ensure that the City's regulatory process does not become an impediment to Denton's future growth? d~ rca f d a w ~.UU! rpl NI IAl ^ It PIIII I~x~rlet f'uusulNng • r;a r o • Slurleplr, ftetonunendalwns i PHH FANTUS CONSULTING RECOMMENDED STRATEGIES REGULATORY PROCESS • Establish an effective mechanism for continuing dialogue between city officials and business leaders regarding the regulatory process Utilize the existing Chamber Local Relations committee as a conduit for discussions or establish a new forum that includes top City and business officials. 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 initialed, and the platting process has been streamlined. • Ensure that regulationslordinances 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 - Undertake a review of regulations/ordinances affecting the business community keep in place those that serve the long-term interests of the community. including beautification measures rya 0 - 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 d C. ~ .'Ir~l rll ~ IIllrllY ~Ir lrl ~ r i r.U11l IUl. IMAI. ^ . w4 l 4 1 I'I III I aullls ('unsullink • p • SUolr. it Recommendations PHH PANTUS 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 with which it has been difficult for some businesspersons to work • • Jaremry WOS COMFIIkNIIAL , 44 1'1111 Fs"1410 Consuhin= t! ; 0 • a • Sltnlepic Rer.onimendalions 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 with which it has been difficult for some businesspersons to work • s • 4 N .l.uwaiy 14 C N 1 119 rrnw 4.1 1'1111 M'~ntus '10113 10H his 4 < Fr FfYx fl ( r` ;j • ti :.'~Isa~,y5'r ti ~ • f.. W • • $$))A 4 1 :;Irdequ; Hccoruuueulalrons i i 6. ENHANCEMENTS TO DENTON'S INFRASTRUCTURE SHOULD BE MADE TO POSITION THE CITY FOR POSITIVE, IF NOT IMMEDIATE, SIGNIFICANT GROWTH • Virtually all rnlerviewees agreed that Denton must have developed sites available to meet the needs of businesses that wouid consider relocating to the area. Currently, the City not only backs spec buildings and fully-served lots but is not even in a position to discuss the price of land with customers. • 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 ranging from the availability of attractive infill closer to Dallas to the perception of Denton as v5 u .r being outside the Metroptex, the kinds of development Denton seeks may still be ' several years away • Key Quesllem What actions can be taken in the near term to strengthen Demon's infrastructure in area s of relative weakness? Ch ti Ch In, i,u <T I, Ilenpy P19!~ G1NIIN NIIAL •IS r1IIIr '1111111.5 {11115IIII111 1 ~ I • c~ • { a; 7 $ll ulegic Reromulendahons q PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - INFRASTRUCTURE i The focus for Denton must be to ensure that fully-served sites and buildings, competitive with those a 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 he one measure that would enjoy near universal support would serve as an important cornerstone for future economic development If and done correctly This effort would directly address the need for fully-served sites and spec buildings i 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 I e • 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 in Denton. Possible steps include: Personal contacts with landowners by prominent Dentonians, as part of a coordinated calripaign, to make clear to them the value (to them and the City) of establishing a market for their land. e Periodic social/business events that could be sponsored by the Chamber and City • to which the landowners could be invited Iv fl~llll :V lllill,' ~t14l, , COW JOE MII A( ~ S 1'1!11 l~amtls ('I>IIRIIII111~ ~ y. • • Slrnhl is I 1rronnn44dlllolls f 6. ENHANCEMENTS TO DENTON'S INFRASTRUCTURE SHOULD BE MADE TO POSITION THE CITY FOR POSITIVE, IF NOT IMMEDIA'T'E, SIGNIFICANT GROWTH f • Virtually all nlerviewees 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. f • 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 i • • As several interviewees noted, even if Denton makes the above infrastructure I! enhancements, rapid development will not necessarily follow. For reasons ranging I from the availability of attractive infill closer to Dallas to the perception of Denton as ! being outside the Me;roplex, the kinds of development Denton seeks may still be • several years away. Key Question: What actions can be taken in the near term to strengthen Denton's infrastructure in areas l of relative weakness? - - . unumy fU76 CONI10 NIIAL d5 I Pilrl FRIIIILS CUIISidthig • C> • 3 `v ,d' ?(t Slrolrn v12ecwlnnendollons t I PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - INFRASTRUCTURE (CONT'D) ~ • Upgrading Airport Road, and/or building an additional road for Ingress and E egress to the Airport area, would enhance both the value of land in the western part of the city and relations with existing businesses • A new effort should be made to have the Texas Highway Department add a new exiUentrance ramp to 135W to improve access to the highway for businesses located on Its western side To alleviate road congestion that may occur from establishment of new businesses or expansion of existing ones along the 156E corridor, Denton 0 planners should begin considering road Improvements and additions that may j be necessary, such as repair of Teasley Lane • A strong education program should be launched, In coordination with NTAC, to make Denton area residents aware of the adverse economic impacts and `y ® health hazards resulting from continuing status as a Moderate Non-Attainment IV FV Area or becoming a Severe area a 4 Expanded mass transit offerings can be considered. The STARTEC vision inClUded conshUCti of a monorail and, whether or not the business park -R: 31 rllll Lll,' 141w NI 1UI. IfIlAt ~ ~ I'IIII 1`1111 11 S 'flits 3111 ill • A • • • Slrate rc Recommendations becomes a reality,.such a transportation asset could be developed, 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 • i i e ~ a ~r CON / IINA I IAL Ors I'Rlr I+enlus CuusnltLlg 1p , , . ......_.~.......A..._- Wes.. _ • • i t .y ;.lilt ti+y} r~,x~?=, y`~~ri~'~. • c> • e i tilrulenn•. R-.~____°«_~~rr!r~ndalmns { PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - JNFRASTRUCT RU E (CONT'D) t • Upgrading Airport Road, and/or building an additional road for Ingress and i egress to the Airport area, would enhance both the value of land in the western part of the city and relations with existing businesses # i • A now 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 i i • To alleviate road congestion that may occur from establishment of new businesses or expansion of existing ones along the 135E corridor Denton 1! planners should begin considering road Improvements and additions that may e be necessary, such as repair of Teasley lane r • A strong education program should be launched, in coordination with NTAC, to I make Donlon area residents aware of the adverse economic Impacts and health hazards resulting front continuing status as a Moderate Non-Attainment e Area or becoming a Severe area e Lxpanded mass transit offerings can be considered, The STARTEC vision included conslruction of a monorail and, whelher or nol the business park ? I 1 47 I'lirl I'lIUf115 (tlItSllrilllk j J e 0 • • r „n.•ovo ,u..~i, ',k^:?~N6YAUtaiKYh~\?JMt ~'aia i II I Slr~ler is 12ecmnnionrlnUuns 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 Denlon's labor 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 clearly exists for enhanced vocational education programs that go beyond the current adopt-a-school approach • I r Q lamidiy 14!16 UUNI 101, l l I A I. 'I~ I'llli I~nuNrz r'nmulllNp ♦ ti~ r r a~;,'., r'~ e ,t1 ~3 • rri''fM'p0 .jl{ ♦ • e~ • • S Shale ~c Iteconunandalwns PHIi FANTUS CONSULTING RECOMMENDED STRATEGIES LABOR QUALITY 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 i • Given foreseeable cutbacks in government funding and programs and with a relatively high percentage of Denton's workforce employed in the public sector, the I • City may want to target training programs, offered in conjunction with educational institutions, at these employees to ensure their continuing employability a i cc, d~ • The City and the Chamber should devote more energy to working with the Denton ~ Independent School District on programs that train high school students for positions I ® that local businesses will need to fill. Models for such interaction can be found in a number of other jurisdictions. 1 - January 9f 15 CoNIJUENIIAt. 5f1 PIIII VNnlnS ('nnw Iiug I 1 i • • ® Slraleflic Recommendatrons 7. DENTON'S LABOR FORCE IS AN Q 1SET FOR ECONOMIC DEVELOPMENT EFFORTS BUT EVER-CHANGING WOP'XPLACE NEEDS DEMAND A PROACTIVE, DYNAMIC EFFORT TO MAINTAIN HIGH QUALITY Demon's labor 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 clearly exists for enhanced vocational education programs that go beyond the current adopt-a•school approach • 1 i .ltirnrdry 19J6 C0111 IDW IAL I'~ I'I I11 I%Nnlus Cunaullink • w • n..-..,. r,, _•.v~e n-+ n[arsd.tsvh`N'!k0tlx5.~vpYq; ,t Y t .t r 1 ' l r I a r'. ~t r Iia tf,~r ~ E ~ ~ r III. Action Items yyy r ~'i3t~ s ~y 71 ~~rt 4~E S~J~rtl ~ yi~ ~~~e~~~~lsi~~(1~ li ~f~' ~ 1~~ t ) t i"• r ~ ~ 1 :i i'.. et Yl ui R' ~ ' rhi ) PI ~IGeIt~ ~'fr) ~i IE r,k (l!tlS I ,,f ~ j I ' ~ 1 t l pd t }E ~ ji y Y tF 3 I%1 p 71 I'.* & €I ~~i ~.~E I7~ ~r ~ p(E'r r'I d~l~t~ l I `,'I ~f r ~ i ( s t 3 t~ r p1 3 1 11 b 111. ~ 1 1' 3 ~3 A ~Y 3 t~rn 1~ 1 I r '"'i 4 t r 1 1 ~1 e -~3 r ' 1 r g 3 y r r 1 3 6+ t i ~ '•,:<1'E'y ~t ~it `~t tt~( t~?,~bt&i ,~~`~~i t.~Yy`~ 12: ~~r~ I l t~ tAE ii 1 v tE K_ tt I P AAA r rk 3 t FYI Z K$'t~.$( I~1~ rlt Tf I ~ p,i L ~ ? (t 5 rjr t I I + I E t' ~ ~ ~di~ n ai1t~> r~1~ Irl I ~ 1 1~ . t d (1~ s` t i I ,i 1 ril it ej~r~rx ~Rlt i'yEl~la tl aPli 'a' r 'i .r 3, !1 1i ilia ~iE IY i t If ili'~rl it 1 u'! tt1i~ I I • r n. v i ~ ~ h1A8~~v r~ t~, s1 ~~St1 S~ I~_ ~ ~ s E~~(a t Lf~~i li try r y { y '23~~9 1t ~~.,,.rrlf rl is a t i)t'111111 ".1111 jelly MITI CONE IOL N i 1 Al. SI I'lllllhuihix('m~xulliug ~ • w • V j y /~CIIOII II QIIIS l IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS; 1 • 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 i can be established to pursue marketing and other initiatives, I 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). • Initial steps in the brand management process can be taken even before the economic development i 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 j and targeting should drive decisions about the city's positioning in the attraction/retention marketplace, it is important not to structure, or expend money on, programs that may need to be modified. S • A forum should be established for City-business dialogue. The group that convenes should be small and, at a minimum, should include the Mayor and/or one or more City Council representatives, one or ~ • • Iwo 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. J, Y) CUNI II1r 1111A1. 1 ti x 32 111111 I+xnlus Collmlifing 1 ' 0 0 • W • e _ I 3 } r..: q t c a r= p r i ~i ! l R I z r Nr S I s iE N t t y } 1 f z ' dr! E""t t 1 ~~L t t' ~ %t~ 3 a ~ e a 1 z~ t r t13. r: tai t 1ti t~ ~ (3 a:, t ~ r I< I,'1 1 I i. r 1t }AiEr 7 E 1St z i e 1 r e i } yr e} v if 1 f ;r r d '.2 t z ~ e ..F z ,~31, ILt iE~l< ~ E„~ 9 };l; t! fr ~ ,Gt 1, e1 G r. III. Action Items F } E 1 ey E Sti ~t}3y j HsEt_ k~~E`A zzf~~~'~ et (dg9t~p { ( a t I~--i ii P:3 4E 6.~ riaz Et E~ I } I E.~rt dAl ~ {s, ^i. t~ g}i ~u~Y tvh y`pP Mfi3f Cl ~~ipe Fr2 ~°tfglf '.i I !z f f F f f✓11 ~ 1 ~ sari r ~ z ~ e & ,E~1, 11~ elr r ~ e 1~ 3. ~ II ~ t P' P k1 7 u ~ t{ I 11,1i~ „-}'1 }1v ~r ttil~~}f51 ,3e r I~ 1',' F I rE1t~,, , 3 z 11er"J ~fiIY'.'',t~1E~l ~LFf4(~~1`tE r r 11?iR 11~~ic tk~,of 31~' S i~iz f ~3`P e S.. pwe ~~1: H✓t `~L si~I li t:~ i~4e E^~ 1,~ 3f7gf~ t k?~13ib f~' 9 sr 1y , ~e 11~ p~f ! k 1 g~€pG 1q7 3 ~ t1a i I `S i e} } i r d f t1 Ur fit ;~`~.E'Nk3 r cir Ip'vi 1Gp EAt 1. 1r 9 t1 W i M~7~~ t~ s ~t i s I t e t ";9E asuaMh+'~~~0~5~'°sq S1~u. t 1` j 71 w ( b ~ f k !t ( 3feHq S~f~ i E i? all z1l szFi}JS~} . f 1z 11z ~e l:4 {,1 Er z 1 r 3zaolrf } ro ~ } t~S~ e} p rI7S a i~ i~ ~lir L1 f 1 zX41 } K r I } ~ r } h t 1 E t{ t} a + ~ 7 }k97 +1y i pi ~ fe t } t 1 ~ 1 i W7 f 7 i 9 1 1 < 9 ~u ~ E1 ( f i 1 ~z ~t 31 y ~ z f to tnlb i~tl lerE~ lr ui } ~ I1 f tt a ~ I ! ! ~,jiIE~ €~pg9~ }q~~, E f Fq~a ~ ~ ~ f~te~ltl} ~1 t~} i ' ;lip 1•z1 ~~}t~Z1'~<~r~'SP ZO z~n,t tf~ z z~, 2 t ~ rn~,"r t E... : ~r, t e e ,lanuary 1995 CONFIDENUAL S! I'llll I+uul+~s ('<msulliuk • 0 1 Aim" • a. • • ACIIUII loots IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS (CONT'D): f 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 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 ostentation in all city regulatory agency staff. • A review of City ordinances and regulations having an effect on business can be initiated. The goal is riot to engage in wholesale elimination of legal requirements but, rather, to ensure that the regulatory scheme is riot unnecessarily complicated or burdensome for developers of new or expansion projects. • Appoint a temporary ombudsmar,, possiuty one of the current economic development professionals, 1 who could be replaced once the Economic f avelopment 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 x, consider establishing a position within City government that is similar to the Development Coordinator position described earlier. t E Utl11 IIII: flIIAI W t l I'IIII Fxptlls CIIIIsIIII;IIg • ra • drhrn, Ilc is 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 wilh incentives, may n.ppropriately be left to the Board of the new Economic Development Corporation. • Identify existing businesses with the greatest growth potential, and those most likely 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-win situations that can be publicized as examples of the support Denton offers its businesses • Perform a thorough analysis of manufacturing activity in Dallas, Tarrant, Denton, and Collin counties to identify which kinds of customers/suppliers of existing businesses are not presently in the Metroplex but would be useful for businesses to have present. Once this cluster analysis has been completed resources can be applied to • attracting those customers/suppliers, • Target white-collar businesses for relocation to Denton {define high potential clusters and target markets by industry, function, and company and by R' geographic location A - Work with the Dallas Chamber to identify businesses planning to leave Dallas that • might be persuaded to remain in the Metroplex by moving to Denton CONFI DEN I I IAL CONIIAL S'~ N I I I Fnldus ('nusulliIIg • • • ' Achon Items 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 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. 't { • A review of City ordinances and regulations having an effect on business can be initiated. The goal is r 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 +hem obtain necessary permits and approvals. Alternatively, or concurrently, the City Council and Mayor should j consider establishing a position within City government that is similar to the Development Coordinator i position described earlier. k e Ito 1 _ nE„1„, I Janiimy 1995 CONFIOf.NTIAi. r I I 5t I'InI Remus (bnsulting 1 • 0 • c> • i~ Action Items WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONT'D) • Obtain market prices for the 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. i • Continue efforts to find a purchaser/occupant for the TI facility j • I Success in that effort will have symbolic value - Work with NTRI and the universities to determine whether the facility can serve as the center for joint university/City economic development efforts' • Begin positioning Denton to benefit from NAFTA-related trade C) e - 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 iauwuy I!14!, _S~ 5 coNI 11*1 11AL J SS P I I I I Fa IIIII% '1010s 11 ing r i I • O • a, • I • ra Action Items WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONT'D) I 11V Develop a spec distribution center either as a stand-alone facility or as part of a business park a • Denton January 1995 ` I COWIPENIIAL S6 r'rlrr Fanlui ConswhinR Q • • • I EL~.clianilems i WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONT'D) • Obtain market prices for the available parcels of land so as to be able to better market them i 3 • Cement ties with the Dallas Chamber - even if Denton's economic development program I develops as anticipated, referrals from the Dallas Chamber will remain important r • 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 facility - Success in that effort will have symbolic value • - Work with NTRI and the universities to determine whether the facility can serve as the center for joint wriversity/City economic development efforts • l3Pgin positioning Denton to benefit from NAFTA-related trade - Engage in selective advertising in media circulating in Mexico and the portion of I e 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 .bnn,ary fJ!I!, CONFIVE N I IAh SS I'llll Fenlus 1'11105ulliug o a • w • • F Action Ilems 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 • With the completion of this project. Denton has finished Step IN The visioning process has led to partiai 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 ultimately dictate the success of Denton's economic development efforts. • g{• w . ~ I d. uenlon .I;inuaiy 1945 11*Nna. 5't I'llll N'rtnlus l'uiuuhiug y.....,♦.'r.,..-.hn.eM•+,FM,.-.... } ` r ~u~1W,4/.i~` If.{..♦}'W'I W'n • I My , l (r (li i i 4 l' itJ • • , IDENTIFICATION OF KEY FACTORS iN THE LOCAON DECISION-MAKING PROCESS 0 ' • TWO A REVIEW • ECONOMIC 777 Prepared forat r ~ jq R y ret <t t ~ Presented by PHH FANTU8 CQN$UITINq t i , cl, L a t r November1Q94 „ i 7nro MW Is hO" cnn6 *tW &W awy ra wr br~ %f 00 MW"nd bi lMklk+ f+>r•* b rrprw NYe rfil+arA prbr i eo•uuho r»rrMs~bn. _ ccAA W • d • F s a; TABLE OF CONTENTS i Introductlon anQ Badcprtwnd il. Key Focim in the LocoW f o-Moof ko" ill Denim's U kal SUCCOU Faolora (CSFs) • IV. DGtW d Find W {tgp•'diing Slr lq, Wea "too es, SkM9piC11Mf+M! tY • GJ • [p ~ 671 O O • 0 • s , s .a ' INTRODUCTION 1 BACKGROUND S s a 7 r M a a. is 't 7 3 e y a ' = 9 a ml s .S? • w e • Introduction and Back round The Dcnlon ( INU111 r of C'omnrerce (('hamher) and the ('ily of Denton have retained YI II I Panlus Consulting to evaluate both Denton's competitive posilion for allracting and retaining businesses and its marketing and retention programs, and to identify possible strategies I'm enhancing Denlon's el}ixts. (fur specific mission in this project includes; a Idemifrcation of key factors in the typical corporate location decision-making process ■ Analysis of Denton's existing situation, reviewing baseline strengths and weaknesses, and identification of economic development opportunities and threats a Benchmarking of Demon's critical success factors for economic development and comparing Denton to key competitor locations a Specific assessment of Demon's existing marketing and retention programs e ■ Identification of'possible economic development strategies for Der on and related programmatic and operational initiatives i I f I'IlII Vantus Consuhing • • • INTIROWS 11110 IN DEKTIN Crtutll klanulachuing Hurd of Reallors Ilyd: Croarch Hunt Polmleum Corporation Donald Hillard Itussrll IJuwnidn Manulaclunnp Denlorr Piklishing I;iuryrmy lull Paltorson Jun Felker hrsa:ns (f E f otnplrarw CeNral Area Melvin Willis GOS9o1t Coslorn Homes Fred Gosselt Il~wirq Aurnip.mi 8 I loclroncs Donlon Irklrjwndonl SallCrul Ihslncl Dr Albert Tlxunas Ildlwnod Dovelgxnent Cap Ronald Wbdo I'ulurhill Motors CornfOly f irst Stale Hank Phil Brarktusl Hdl Uller Ford 0611 Ullar Sr Texas Wmran's Univmsdy Or Donell W Bulls City of Donlon Mayor HutrCasllUerry ~ Wincrl Member [rBnie Brock Corarcrl ldember lack Miller City Manager Lloyd Hanell MuocWl Ilt,btms Direrlnr Bob Nelson Planning Duoclor Frank Rolkuns Deparlinonl 01 rconoouc Ilevoloprnenl I Inda Ralliff Doparhrwnl of Canonic Development Belly McKean Hayes, Coney R AcrTy Richard Hayes Iexas Hank Ml Taylor Unrvers-'vofNWhTexas Vied Pole • KeeP Denton Deaullllll Cocille Carson Donlon Charibur of Cornmoice Chuck Carpenler Koo Burdick • f• i Oi INTERVIEWS NUB IN DENTIN 0,11,111 Mmajh( lurmo Hoard of Neailers NO) Crouch HUM PU11111QUi11 Cog)(xataxi lk m*J Dillard J Ituuull th:wneio ldauularlunnrl Ilerilm l1dwish oo Company Hill Paaersorr Jim Vaikoi .Adllw. GI F: lolaplkxw Cunlwl Area MUIVIII Wdhs Gossell Custom Honws 'red (;ossull HiM'HHJ Au4wpdCe & I-leclr(xlics DeWooi irf(k1Tx idurll 5(:IW DOW h Albeo TIMMS I1111MMl DUYUIn(tllwlll C011) 16,llal(l While F I10wGei Molois (4to piiriy Kest Slate Ilaak Pled 11rookhrxsl 11111 U11er f ad Hill Uller Sr Tablas Wonms Universily Dr lklneli W HuKS `J City of Witon Moy1N H(A,Casllulwny Corulcil Man>!wr Laliiw 1310ck C(kxicd Mellltwr Jack WWI ('.fly ManaW ( loyd Harrell Munlct;4 Whiles Diroctor Hob Nelson Plarmig DdocIw frank Ral>hins lll;liulnwnl el Lcoronic lluvuhll)melit I nkla Ratidf Ihparlownl of I:C 001111c Develrg)(nerll Ilet ly McKean Ilayos, Cotlay R Gerry Richaid Ilayer l um as Bank Jell Taylor (likvelsily of North Texas I lad Pole Ke(>(1 D nlito fleaWild Cecilia Carson II(.Hilou (Amogwl al CorNrwrcu (,brick Carpentoi Kor 1 13unkck r a 1 ~ o 9 O Intrnduchon and nackground 4 Dwim! September and October, I x194, PI it I Fantus Cansulling conducted field interviews in the Denton area to bather primary ldhrmatiOn nboul currcm economic. Irends, business climate strengths and weaknesses, potential opportunities and Ihreats, and covenl markemy, and retenlioa eflbrls Inlerviews were, arranged with file assistance orthe Chamber stafl'and included the i tollowing calegolles of Inlerviewee ( ■ Key employers with significant operations in manuPiouring and servixs ■ lilec'Icd Ind profi ,"ioaal public sector leaders r AMI prulcssumals in development, real estate, mass media, financial services, and higher education 4 ■ Ihoviders of ulility services Io business ■ Collum"wy lemlers Our analysis Iuuher relics on it variety of'published sonrces and 111111 Paulus Consulting's proprietary databases covering factors crllical to the Succes.slld location and expansion ol'busine", investment Finally, our analysis is also informed by a review of ovcudl economic and employment trends al the local and national levels y~ y3 Fn Irg i'! I I f I anhls Consu1tirig' s approach is haled on the methodolw - Ihal a typical company world use in the course of a typical location evaluHllun pr(1c'ess c1 e ~ COW !on k nor ~ .2- 1'1111 Fanm.r Cansulling e 0 • m • • F Introduction and Beck round TMWMUMM Our lindlnbs lion) the project will be contained in Iwo separate documents; ■ ' I his report addresses the first two Work steps of the project, which were the subject of the Pl Ili Fantus Consulting progress briefing held in Denton on October 21, 1994. Specifically, we have identified the key Cictors in the typical corporate location decision-snaking process, described Denton's Critical Success Factors (CSFs), analyzed Denton's strengths, weaknesses, strategic opportunities, and strategic threats, and provided a benchruarking analysis comparing Denton to competitor locations nationally and in the region s the final retort will assess Denton's existing marketing and retention programs and identify economic development strategies and associated programmatic and operational initiatives r ~t r ONOI11~1 R1 1 EIb4 cckrrIDWur P1111 Fenins Consulting a r I •q f }i$1 thJ r " ~J I yr.~. r, t Y, r rQ~F~ks"iilr5 l $ i f • tlr~ • • . . r.. - . ~ n... ~.n. n. «.'r. •..~.'n4x W.MPY1n.NVANV M~t[gYIY\Y.l[R41 is i Introduction and Background PMH_fa a Ct!!$YLTINIi NAS YIIEUM YWIIF S M LOU M EfllFJnelcE ANA !'~u'_.._ pATAdASE_iNFSRMaAnOp_TNAT 7s APPLIED To ELY MM TI Me PMN . MIE ■ This experience is applied to our consulting work with communitir and economic developnwnl organizations throughout the country n henton's economic development CShs, strengths, weaknesses, strategic opportunities, and strategic threats have been evaluated from the perspective ora site seeker to ensure objectivity and insightful conclusions and, uhimately, to provide recommendations for improving economic development eflorls ■ 1'1111 pimnus Consulting has a unique understanding orthe site location process and has completed over 8,000 site location projects • 0 c: sYa Iluvuni6r„ tAUA ONI Inr N I IAL 4- PillI F'anlus Consulting t t r . , - ~YIr,~} YF~F9 r } r.~ ; r e 4'Jr. r;f~4'~ ~ . ~rS+' J sI • • • ! II. FACTORS KEY LOCATION DECISION-MAKING 'PROCESS r e S crv~ 6 7 t a A L }y F x N { E1' A i 4 ' • i T ! 1 4' K ' i.a Gl • - a, r s EVOLUTION OF A DECISION: FACILITY INVESTMENT SCREENING PROCESS Macro Screan • Multi-State andlor Mulfl-Country ryrrl4atREItN?IS?NtAr1QH5 - IYfIGA4Ali RAQ114ifFA iT4ti§ • l1oMm[ lWNpmP1 S•ro.r lNrern SIrU IIuHN11 Chn•I• pnpr(Il EBm1Mfw Sfaf. rfCounfflel 'd.b Ihq n1U l.rmr4 f o11uLOn01un1 SI III fWIMt1 llmNr follV(:OMIMr [ ~~n1Nn1 slw e. N•R.,rIminN w~.RNU• ..anprnr bW#K H10.IImb01 WRnIINWR -:11' dua !e Selected "Knock Ow" .I n.1 nlar r•JI •I (IN bINI l rbl Facim Igtnll I lopa~o i pralm Rr la mpul v IDmpl lforf piamh la mIOM m lomprylpl Hnrpimr nruw rnNpnrlNnlrl NIU11 IVrua NI" INr - Iy«VI uUb1 yrnu•I vµrnlAl bHlWrr p1MIN MrMM .vIbD11'1 MsorofMkro ftm" Sa lec I M SA'ssCounues, Comm unities in M utll•Statef Mutti•Cou ntry Are" I WICAL Ht. I011Q11 !A 4lQQ5 IYf14ALATTIRAC WQVA4T4l3S .per rr.u• rronoma 14nbpnNM fi•M. Mwxy IVari M m,u„au• a~+'• , Alw I fWvh%Afw kfSAaf 1 onw•N . Vx .r L0 nYfp M Grb u~m.u a,,,,nar - - CtNnfnunllkle do* f0 Q •.a.4, U nrpn • e„.y •.«.Npuf, q SeNclw "Ifnock Out" ua•~n wno„n~~^ n.w . N YRn rR Faefora r.r.r ti41rr ..I40rrl B "IWW.Iow saw - 41r tl.rlr VI !.rNU. uu euWrr pplr so*, A 04" • Ar••fYRR k SpKIt VNfMMf • Mier* $areen • Seml•Flnslist Communities and Sltas _____,_~~~•_,_Involvea 011•3ita visits >a iYf I'~' Ir> '_ICALRE?GNT14NI9TTyAC?IQNERC T4I35 fNmlMfw Communes `i • rm.p. . f>N«w cola > Stea due to Selecfw 'sea. s••muwnp rlnm•w. ...-~L". • "Mock Ott" Factor • Urufr d I h V • IkHNe Iltror M, UII f.M UrtUnr[I • • ur.. umwrm•nl Rr NIVrq I f udoniw lwe (m II.1 1 v 7 3 11I611H1 I,Ilrl llllllllr4 •t[r , 1 ra • • T 7 K i q ~ Il t Y KEY A i-PROCESS 3 ~ r ~ e: ) d; c rt3+ ~ ~ 3 t r r a ,n 3 s ,z c}4t i r~~ p` rtt to ' ~ t 7t T tit g ~ ~ 3t ~ ,rq.t t r,< , f R r~ P s p Z t ~ t} r a t a ~ 4 ~ Y r re t":u a ~t ~ !4 rat ~ N e r' x t{ a 3 xi z1 t .v+ i t t tr r ar v ~ ) t3 ~ w< • .^v d - t ft Y tC~ np E r. i ~ 1~ ~ [ r e ~ ~ E } iC r s ~ k yr t t n i' S " d e P r a t ~ A r .3 e } r ' i M1 y "'t. ~ K t a b z e r r I 8f17 < i ~ ~ rf r A ~C 1 L ~ Ye T t F Y Y 1 f~ £ ~ M1 1 i I J M1 1'.. U T ~ h: r A Y i YP 1 tf r~ S t ~.~u~~,~~~E~Ga sF~t i ✓ ds3l p.w to • I I~ i • w • I l i Key Faclors er the I ocalion decision Makin Nucess 800 ASSESSMENT.SF_DWIN_1FRIOTS THE.INVESTMENT_BE61$fll1-MAI(WSCAEplIN6 MINCESS TYPICAIEY EMPOWEA_BY SITE_•8EE_KING FIRMS... I he template reflects a screening process by which rile-seeking firms sequentially eliminate prospective locations based on their fadure to Heel scleclioo criteria at each level ■ 'I llc process lypically moves through various xcleening levels. • Macro level milli-slnle and/or malli-counlry • hlacro/unciu level(s) selccled cnics/colutilics in remaining staicslcountrics • Ixlwru level(s) linahsl/semi-finalist communities in selected stales/countries ♦ Almost always involves community visilatiou Urals with specific OcsAmildings • Many I''mors truck through the various screening levels • I.evcis of detail usually become more sped:ilic as one moves from macro Icy micro screening • • for example, a site-seeking company might hillow the following scenarios during screening J ♦ Al tJlc nuuYO level, image might be of Texas' state business climate, then image ol'an MSA hased on a prclirurnaty visit fur the macrolmicro level, Ibllowed by image projected by a spd cific c, sire in a fllahsl connmutily 'S u 1 ~ ct ® ANA PORI THE CUIENI 111 1111011 WE ASiEis lEKIM ECOMMIN KVRNMff PN><EMIM ~ n } ~ • - - kill ri l; NlrAI 1 d' I'llll hanlus l'onsuhing _ s • r w. r.rw. .I~Y^ • 4 ~ 1 • as • • 1 ;r TYPICAL LOCATION METHODOLOGY ✓ Nwcb aesuaeri areleyc . C}>eaabord k "Oa send, A 1n6a1 cScm v.: sang ' bering Real estate re4varob ✓ W offs" Wcm ✓ Aot wbhy Awal"ty . a y J To duaele . cw ✓ Legal redncom in inUlry J L*okr neperneai relah" Ruoamrd CarmeilMf br Fts#w Mily'k i FWdaaok Cadad f]elaled a aN P4 s Rdfne Cddusiarr• • Typic ; ; .SLO 10 Fl**"k leoueu In oq* ad Rec ,v wWA" 1 Cbratatsrfies Row,.,wxf 1N0 b rnee c~ana..ru. h ' caw"* 60*mlom ca. • Larafim nedskn ~~OV o 'It~ll' • 'i • • • • ® Kay Faetnrs in the I.nealton Oeeiston-Making Procass OUR ASSESSMENT_®F_DENTON_REFIECTS THE_INVESTMENT DECISION-MAN NG CIMINO PROCESS TYPICAI[Y_EMPIREd.DY SITE-SEEKING FIRMS ■ The [canplato rellecis a screening process by which si(e-seeking firms sequentially eliminate prospective locations based on their liulure u) meet selection crituia at each level ■ The process typic,dly stoves through various screening Icvels: ♦ A91Icro love] nmlti-stale anti/or nndii•country • (\i;umhniciu level(s) selected cities/counties in remaining stateslcoantrics ♦ Alicro level(s) tinuhst/semi-finalist communities in selected states/countries I Alnwsl always i ivolves community visitation I)calS wllh specific sitcAmildings ■ Many factors track through li: variouj screening levels • Levels oi'detail usually become inure specific as one moves from macro to micro screening • • Fur l'S unple, a silt-seeking company might tbllow the following scenarios during screening: Al the. nYlCro level, image might be of"Texas' state business climate, (hen image of an MSA f based on a preliminary visit !iv the macro/micro level, tbllowed by image projected by a specific sire in a linalisl comnwnity • AND PRMIES THE CDN'TUT W WMICM WE ASSESS NOM'S ECI NIMK KIIHMIMPRE1111Al • h- ('1111 panlus Currsulling h • 0 umm wound • • • Hey f aclors in the I ocahnn Oooslon Making Process 1 091 ASSESSMENT OF ENTLN-II#fiECTS TNEINYESTMENT oECf$IIN-MAIINIa SCAEEiNNO INICCCES$ TYPICAiIY EMPLIY11 NY_SITE_SEEfING RIMS (CINTII Incentives screening might start as a perception ol'whether the Slate of'fexas plays lire "incentive game," followed during the mid-stages of screening by consideration of what incentives alight be available at the state/county level, and linally consideration of actual incentive amounts determined dxough slate/community negotiations ■ However, the lectors arc open viewed from different perspectives ♦ fur example, existing corporate citizens (retenlion/expansion candidates) are able to view business Climate from an nhjeclive perspective ♦ While outside firms (attraction candidates) may rely on subjective, preconceived ideas about husiness climate to make their location decisions ■ At the micro level ol'screening, attraction candidate companies will offen eliminate a city from competition: ♦ Based on subjeclive inputs ♦ licllrrc positive business climate features are considered and before actual contact is made Willi city • ecomonlic developers l? `m All MIMIES TIE CUTW IN I WE ASSESS BERM ECINIMC IE#RWM T NTEMiIAI t • a 1, dkrl ~~n'11'Ill~il'1 rllPl ` i WNrnt.NIIAi PI III Funlus Consuhing . • • • i Ka Factu,s m the I ocal,on Decision Making Process IUR_AS$E$$MENi CF,EI[YiN_R_EFLE TS THE_iX111_E8TMMT_O~~ISIIM-MAN~I~S IIIQ ICE TYMCARY_ EMP1 YEB_BY_SM_SEG MCIMS .L #WlI ■ 'I he economic development Iltnction is a key location determinant source, ♦ It serves as a "window into the city" and is ollen the first contact point for outside, site-seeking companies ♦ 11 serves as the principal avenue of redress ibr in-city Ihnis having business climate-related In ublems 3 1 j M MWA ES THE CKMrT IN mm wE usiu mm n Ei/M miaww wreim Mi ~ r t~, c ~aun,i niud t , V a Pllll Pantos 1 bnsalring 0 1 f` RELATIVE PROPORTION OF TYPICAL FACILITY VARIABLE OPERATING COST"' ante F,cluryla 14NWxtuwp F.cuwy IY ~ Ix ?x tirr M% YNrY CYYi1r IrrI Rom atw,M Y~rrr USX NIYSYNi' I { NNY IR lu YCNM¢Pwir 1 - °aV!~=.-. N1Y fh~M~4r ~ it No4 lClpd M NI Wql N,1iY/i I " ilNYfrii HK Y O+,YnN MwfluMNi wNh iYinnM1YYh~Y pIX,Mlq hin4/Nlni NNUNI W.wrla4imelCln it rwllwMA~U { L.,rN lw r, HN y,N WptoYi ii[rYNa OIM4,N4n piruN 1 .r, iM wWq wn 0 pw v a W I r r r • • Key Foclors in the t.ocalmn Decision Making Psocess i IYC_ASSESSMEIIT_IF DENTIN _SERECTS T ICE INVESTMENT BECISIiM-MAIpMO SCIR[Win Pw1CES$ TYPICAl1Y_EMKOVED NY SITE--S_9 ND fl1IMS ILIP ) I'lie economic (levelopment function is a key location determinant source: • If serves as a "window into the city" and is often the first contact point for outside, site-seeki. d companies It serves as die principal avenue of redress fihr in-city firms having business climate-related problems P I~ I i • ...ANN PRIMA THE CClf IOU NI RCN W E ASSESS R 11911 Nw KVBMMWPNTHM ~.ord nrt u~,n~ x' pllll F'antus ('nnsutliug i I 4 O , • 0 • I Key Farlo{s in the I ocal,on Docisinn,Makino Process $NN_ASSESSMENT FUISE$_Hl_TNE_MACSf/ML1W _MlNNNdE11Ei5 OF THE SIEE SEEIIIMG licisiIomm mom""SSi-WN1iE_NNT ION I{i TAE MACRO lE L r Most location prospects in Denton will emerge four a screening process which first identifies Texas and/or the hiclroples or Denton County as a suitable project venue • (har analysis concentrates on location criteria examined primarily during the latter stages of the location screening process • I~aclors considered to be part of the Dallas MSA business climate • Factors considered to be pail of local business climate • Factors w these levels are more likely to be controllable by local forces ■ State level laclors also ore considered, but they are much less subject to local remedial action ■ Our analysis considers impacts on manufacturing and white-collar types of development, which are two very difIcrenl processes, as seen ill the facer • r J {~J Ira CJ, C . .1 "sp o i ura inl NNAI 11. !'1111 Icanuu 1'uusuhiug r ...~.r•..-awe..... ~ . ~ Ip, I • i. ~ • r`. .L l III. FACTORS DENTON'S CRITICAL SUCCESS -17 i 3 E i F i x, / C F t r' t{1 euFl ya p' r E r I E. • E a a~ E -.1 1 t ~ f r i~E< as ~QTSr ~~Ir d i i Es E a E r rSE 1, 1 r 3 `y : r t f a 4U~ ~y a~ 4L~ cu c!J S+~ V I f~ E 1 1 ~J{ • a~ • • DENTON'S CRITICA1, SIICCM;SS FACTORS Labor Market Conditions Image General labor availability ■ Economic development program Labor quality/productivity ■ Regulatory environment ! r Labor costs (wages, fringe benefits) r Business awareness ■ Labor management relations ■ Taxes Infrastructure Location ■ Transportation . For manufacturing ■ Sites/buildings ■ For non-manufacturing Utilities ■ Air quality Quality of Life ■ Availability and cost of housing • Education ■ Recreation and culture • tU a of J r.'..~uy.......~rr~.rr. . . » rr. 1..11~2~: i J w1M.... s ru • i t t ,z r n"4q u 1 I, a ~ r F I A 3 F, • 1 s Y l III. DENTON'S • FACTORS a t r P fr`,° ,i 3 Teti, x ~ .i 3i t' W S+ r r - R S r~7 1 t P, e r y r~ r° t r t K r, i e N ~ P • rYiSt i 3 r ~x rS~ L ~ i. t ~ t` F 1~a d~ t 1 Al ~~Y 1~ F Y a ati+~ sa w..Erk3c.~~~a,ar iF ~ ~ t ~r,i'brt rdr~rF t';a~2'~sF e•n t~'w r t ~rN : r R i e ] ~ jx3r ~ .W~ a i I I • V • I ~ • • tlentori s Clltlcal Success Factors (CSFs) 111 APMUCN CMMEIJ ,TNE-CSF= NR OMMS_ MMM KWIPMflIT s Willi the location screening process discussed previously in mind, PIIFI Fanius Consulling determined that the tbilowing were the relevant competitiveness factors on which our analysis of slrenglhs, weaknesses, strategic opportunities, and strategic threats should focus. These are among the primary criteria being used by location decision-makers to screen between competing candidates for investment: • l.,,bor markel conditions • II1fIa51111C1111C ♦ Image • Loclllion ♦ Quahlyol'lil'le I ■ For this Report, we have identified competitor locations inside and outside of Texas That have similar profiles to Denton and to which Denlon can usefully and reasonably be compared. 'T'hese comparisons ale highlighted in the graphics Throughout the report. i . r,. r7 cj 1 ,.ual lot nIIAI I- 111111 Finnish; Cunsulling E{~„ /r (f , , 1 W • A 'r KEY LABOR MARKET CONDITIONS Labor Availability Labor Quality/Productivity Labor Costs Labor/Management Relations t • FANTUS CONSULTING INSIGHT s Labor market factors have played a role in every one of more than 8,000 PHH Fanlus Consulling location projects Decision.making factors in the labor market category cover a broad range labor availability, skills, educational background, labor management relations, wages and fringe benefits, productivity, industry mix, absenteeism, and turnover. In the not too distant past, wages and labor/management issues tended to dominate the decision-making equation At the present lime, and for the foreseeable future, other factors assume precedence. Labor force skills and educational background which will allow a worker to function effectively in the plant or office of the future can be considered the number one focalmon determinant. Emerging factors, such as the ability to function in a team manufacturing environment, are becoming increasingly important. 1 i i L v ; • ~a • M--D-(.nton'sCrilicalSLICCOSsFaclors(CSF:s) _IYA AlMII1ACN C II$LOEIIS TNE_C~F_ ML II~DfN_tNMN IBC iEY~L~rMi EMT ■ With the location screening proceas discussed previously in mind, PtEti Famus Consulting determined tI'aI the following were the relevant competitiveness factors on which our analysis of strengths, weaknesses, strategic opportunities, and strategic threats should focus. These are among the p+~mary criteria being used by location decision-makers to screen between competing candidates for ip.~ -,'ment. • Labor market conditions ♦ Intiastruclloe ♦ Image ♦ Location ♦ Quality ol'lilc ■ For this Report, we have identified competitor locations inside and outside of Texas that have similar profiles to Denton and to which Denton can uselally and reasonably be compared 'these comparisons all" highlighted in the graphics ihl'OUBhout the report. s • UINtIUrlglAl ~ i ll- I'Illl lentos Consulting f 1..~.n.+....,..rr. ..pr... , ~ ~.~'""fie.. ~.vy..-. 1 0 i4 (14/ 4~[;Y 1. • w...:.,-r .r.,-r.+r~aevY'r..mreVw'rh'rYtletO:'Y T.i S'Nh'.hn.,~lKd/YAI„'10onlon's Cnacal Success Faclois (CSFs) STR~II~C~QIi~lE ~ i F • All of the employers interviewed stressed the high quality of the Denton area workforce and, most prominently, the strong work ethic displayed ■ No interviewees expressed any issue with labor costs, although a comparative analysis of salaries at the county ICYCI indicalos Ilrat DCntnn's manufacturing labor costs, exactly the national average, will not be a oral ketable, competitive advantage • Labor/management relations are solid--an analysis of MI.R!{ data indicates very limited union activity and no employer interviewed indicated a significant problem with unions i ■ No employers dominale the local employment picture, the public, finance, service, and manufacturing sec ois ale ail reasonably well-represented in file Denton job market I I i I E a' cca (9 ` 03 w i.l Utl rUl NIIAI I'llll N-anlus('uusulling i r • c~ • • LABOR AVAILABIUTY • FANTUS CONSULTING INSIGHT Labor avallablllly is one of the rnosl fundamental factors in a labor market assessment A typical measure V of labor avallablllly is unemployment rates and the number of people registered with employment security Allhough these measures Cal) provide employers wllh an eslimate of of the magnitude of availability, these are not necessarily all of the factors that should be considered. In addition to these factors, PHII Fanlus Consulting analyzes other data and interviews local employers Since the location selection process is often one of elimination, areas with an average unemployment rate at or below 3% have a higher risk of being eliminated from further consideration. On the other hand, if an area has an unusually high unemployment rate (above 10%), the community must address concerns regarding economic stability of the area, business image, and crime rates. EMPIRICAL EVIDENCE CURRENT EMPLOYMENT BY SECTOR (by County), Overall labor dvadah!Itly lit Denton was rated IHOhIy by hllerviewens Taal Ctylllan Professional, Precision ErtiploymerH Managerial, Production, No 1u need to adverllse at all Cut own employees do recruiting for us' Technical {'h} aah and Repair TX 42,133 26 1 13 8~ j We never advedae in f)allas papers because most of our rccniils cane rK liom Demon or lhe, surrounding 51111111 cormntin!ties, especially nodh of 962.376 lawn ' 32 9 7 TX 58,368 389 82 • We would nut be able to process all of the applications if we advellised , TX pos!holls " 167,373 97,2 9.1 !n[ I j 145,946 43 1 82 n usu it mostly rural workforce; only exucullvos lend to reverse , TN W u commule front the Dallas dnechon " 41,207 38.8 8.2 1Ne wnulrr I!ke In see morn fenrnle apphcauls for dl kuuls of posdl olls , CA 180,944 29 12 7 r~ n. r bur.,luscr IUuy Icnd lu hu Ihrr must mhahlc " 468,257 20 } 14 4 4 f° • d Unrke, GA 40,991 Latimer, CO 37 7 5 I~ 94,107 366 10 4 'Snime I;0j4 coanly Business I'nuerns ` t r A 0 • w • • I i Donlon's Critical Success Factors (CSFs) MIST OF.®ENTNN'S WIN MAMIET c_"YWNI ARE FA UM AN r ftM TM FOUNAII N f~A STRINGCIMIETITIME PNMIIN All of the employers interviewed stressed the high quality of the Denton area workforce and, most prominently, the strong work ethic displayed ■ No interviewees expressed any issue with labor costs, although a comparative analysis of salaries at the county level indicates that Ocnlon's manulechiling labor costs, exactly lite national average, will not be a narkctable, competitive advantage • I.abor/managemeni relations are solid--an analysis of IVILRB data indicates very limited union activity and no employer interviewed indicated a significant problem with unions ■ No employers dominate the local employment picture; the public, finance, service, and manufacturing sectors arc all reasonably well-represented in the Uentonjob market 0 0 0 Illp" V.r,l i.uNl II If NIIA.t t'- 1'1111 faalus Consulting 0 4 7 7 • i4► • r' • prnlon's Cnrrcal Success Factors (CSFs) EMP!_-I-YUS-IN_ DENTIN VE_ACCESS TO AN MIIMIIS NAME If l~A N MWAIM WITHIN AND IMINE-TIIE_NMIPM • DuC to the availability ol'a strong workforce in Denton -nd the surrounding rural areas, most Mrston i. arployers have not had to lap the Dallas workforce to the extent that is possible with reverse conunuling I • lhban. suburban, and rural labor arc readily available • As coinpaled with cnrupelitor locations, Denton has a slightly higher percentage of while-collar cntployces In the worklince ■ Klost employers interviewed du not have to incur the cost of advertising to fill positions because of the RIMARI lst labor supply and availability ■ I hcle is sonic concern, especially among smaller businesses that do not offer wages at the higher-end of (he pay scale, that (here may not be a sufficient unskilled workforce to tweet the needs of some local • basic employers who are finding it dilliculi to compete for labor with restaurants and other service esiabhshntcnls 'I hcse employers may begin recruiting more university students. ids uG . c,(INI IN WIAI ~ t' I'HH P'unles Cunsuhing • • • LABOR QUALITY • FANTUS CONSULTING INSIGHT As lobs rn the Wiled Stoles became un:roasmgly higher skilled, tob0r quallly far,lrns become more f critical Truly unskdlnd lobs in both manuloctunnll nod office onvifonnleols are monay non-exislerll 1 UsuQlly eveo the unskilled lobs (moire some skill and educuhot ISO 9000 is b0alg ndaplud by many 8 comparnus and emphnsmIS lahO1 0duc111011 and Imiaabdily 1110 companms with pnmmily unskilled labor and low wage sha0hrru9 are, m mmly cases, leavalg Ilia Uniled Stales P1,111 Fnnlus Consulling closely mveshgalas mbar quality for cornpanios by ammyting slnlistics, rnlerviewing uduealional and Iraaang loaders and, most impodantly, Inlerviewing employers Prospeclivo companies world rather pay shohlly more for a high quallly work force man locale al a luww labor cost anon fiua has a loss qunlifierl work force Trebarlo quallly arld allonhveness to companies Irmillog hoods is enllcal and is often pall of Iho Incenlives Met con"paalos meg0halo for focahng al am amn Empirical Evidence EDUCATIONAL ATTAINMENT OF CIVILIAN LABOR FORCE (by County)' 1-fopll,yui,, m Ocnlun mule tear, for Ihu most pea, Ihu work ethic H.8. Orod Non H.S. Clod B.A.Ia.11. only Orodwle aagtae of the lobo lime nr fire area is excetlenl flucuuso there is so mw ii Iebur avadnblc, viopluynrs are able to seluct Ihl: bell Grayson, TX 29% 20% 10% 8%e caodrdulus Dallas, TX 23% 21% 19% 8% • flenlon ohurs ml oulstunding worklorce There is a strong Brazos, TX 19% 14% 18% 14% I ethu,, and very tov; loloovef " DENTUN, TX 21% 12% 22% 8% Even Inns! of om cluncnl stall have a hglher 0ducahua dulpeu Collin, IX 18% 110% 28% I1% WiMamsoo, 7N 23% 15% 24% 12% These people hole and Ihu still of the earth ° Knne, IL 28% 21% 15% 7% O I laid wmlolig labor force, especially oorib of Iho 1,00 Rural Riverside, CA 25% 24% 10% 6% o i people fnrnp al Ihu chance to have it deafly Jot) Willi pond Clarko, GA 21% 14% 10% hviiew ; 1 tiny t,rtun well, mu en0rgehc, and me alive with I Ib l ~ndrr • L11,lnlef, CO 23% 20% 20°/u _ c :IfNlf 61 V00111 li CLil.IIM 1 r 1 , , ♦ v ~wr +r.~~-emu r w-. f) 0 • ra • • k Donton's Cralcal Success Fectnrs CBFS EMPLAYEIIS_IN..D_EtiT~~l_N~YE~C~ESS lF~lt_.~TN F~lM WiTNI~I AIID M1$IdE_TNE_METN~~pI r Due to the availability ofa strong workforce in Demon and the surrounding rural areas, most Denton employers have not had to tap the I)allas workforce to the extent that is possible with reverse conutuniug a I Irhan, suburban, and rural labor are readily available 3 ■ As compa,cd with competitor localiuns, Dell" ;IdS tI slightly higher percentage of white-collar employees in the wurkliuce a Most employers interviewed do not have to incur the cost of advertising to fill positions because of the abundant labor supply and availability ■ "These is some concern, especially among smaller businesses that do not offer wages at the higher-end • ot'the pay scale, [hilt there may not he a sulllcienl unskilled workforce to meet the needs of sonic local basic employers who are finding it diRlcuh to compete for labor with restaurants and other service estahfishmcnts "These employers may begin recruiting more university students. (.ONIlnt NIIA I 11- iNllt b'anUrs Causuhhrg 0 0 1 ( • _ . .~.,n...r r._...:.u rx In•<n»roi!.Yd~!hvf e(Nr4SYYNWIIr ;fyr:{{Q,lC4'471H1'.. r 1 Ilenlnn's Cnllcul Success faclnle CSFS UfN~lM'811yl l~l~~E!~ $ 11 Y l ._~l~ ~1. ~ll~ M Y MI~N_E~~~AYI~MAL ATYMj~ r Ir:rnployers interviewed were very positive ahout the work ethic, dependability, and low lurnover rate of their employees 0 Irducnuonxl altninntem in Denton County shows the Cily to be cumpelitive with locations in Texas and around the country over KS percent oflhe civilian labor force has at least a high school diploma and twenty percent has at least a bachelor's degree • ri r~ r,l ri+ I U 114 NI AI 11111 F'anlne ConsiJIMIM ~ 1; I II ~ z r i~. 1~~~^~n5{Y[<a A:;~ Y rwS ;{R r w LABOR COSTS PHN FANTUS CONSULTING INSIGHT Fowcvw lls nnhuy Iru;lrns• fur hock ofhro oporallons In fhm: while collarsector and for udlrclurm:lsIlruy au: Iuss slclnlhcnr11 for hu(Jlt profile operallons such as rlnls,Intl ;nl;Illur fllcllilles such IIS salos offices and rIclI Ius ll skillslres o ny hu ,ur twwli,iwe meas+iro of lolmr cost, where luIs dramclhc o+ miew the rimpoy of hams aro hiring unskilled abor rl s1,Hlsllcs fray "oulthe urea In x: willal phase of a locahori shady limy alo ollen used as a IIolJns of pldgmg oveaall labor cnsk of an area )I lea <'I cornrnuruly st irelves Iclbor cosl scremmIg labor gIIUlrly ,rnd availabdrly becalm: unre II rryunllnll lu efmpru+u" I COO q~nnua no fonder smack only the (Awapr:sl place le mnm-im-- i~~;~1~i~1~ ~fRI1J:X~MF~IA~~~rltr~ ru 4 `J till U~1 Y .r 0I~ I n'b Ai Ion i 1 , ' r • ~jj]' ' ~ ' . I m+d,ru arm Sri nn' i Ili, I u!rr" n I leap I I d r. hu., ~ 1 ` y\~~(_\ \ V W 61 0 ) • r~ • r • 1 4 W Donlon's Cullcal Success Factnrs CSFs PIPINGS R[YNfIRCI_ A_4 !W.-U !1s!! Iff-I_;A. SUM W R MO r A Ony a Hmployers interviewed were vtry positive About the work el{tic, dependability, and low turnover rate ol'lheir employees F(filcalionnl auainnlent in Denton County shows the City to be compclitive with locations in'rexas and around the counlry --river SS percent ol'the civilian labor force has at least a high school diploma and twenty percent has at least a bachelor's degree • i • • i 1,0411 l%! NIIAI Il pllU M'antu>i Censubinq 0 0 w • Uonlon's (110HCal Succasli r aclnrs (CSPs) WAIF NMN SUM iii M WWR- M ~R= M DIME W COMM WMM,E ■AM~I0 I W N; w I= iA m a in mim ~ • I)cnlun's nMnufilcwring wage index is exactly the naliunal average 1.0. Ollen, companies and their consonants engaged in the site screening process focus on locations with less than a 1.0 average. f ♦ (liven o1hel alllilwics, a city will not necessarily be chmirlated from compelition because of this { s1Nc • I be uwrmlucuuing wage is compelilive in terms of other Metroplex locations but is high in comparison '.81111 sllnle I m14 Imal areas ■ Olllco wages ale 17 percanl below the naliunal average, a dclinile advantage within the Metroplex and nal iomllly • pn ~~s' ~ uli" • t~ C,1 fA C+ i~ 1 411 1111 111 IN I t ~i'llli i~anUlx ('onsullinu • • 4' • m A • s I LABORAWAMAQEMENT RELATIONS T PI11H FANTUS CONSULTING INSIGHT Cenapanles screening communities in the early stages of a location search sornelimes use unlonizallon and/or State Right• to-Work status as an initial screen Metro areas pereoive(A to Rave existing IaboNmanagement relations problems are sometimes eliminated as a result As the search narrows to a few locations, companies ofton use union election history to rank finalists with regard to labor relations clliT)ate As rates of unionization have declined, these statistics and even Righl-To-Work status have declined in importance Neverlhetoss, as the productivity and ftexibihly of tabor becomes more critical to business success, actual laborknanagerneni relations (differentiated from union history) have become more important This can best be assessed through the direct experiences of manufacturers and othor employers who rely on a productive, creative, and flexible work lorce for success I~1 1II 11 11V I' 1UY uuti Z5 ~ 1 n ou I. en o~n or/ p 1 00 V Gtr uYr . • n_) ~q eSN u 'n ` " I] 11 4 i ' r 0 t)enton's CnGcal Success Fedor, (CSFs) i WARE M UM UM M 1hM4W A OKIV t M Ex(rMV CM111MU M~Ae?MIgM WAM AM LVr M AT nE MI T M11 AlI0f11E ■ Demon's manufacturing wage index is exactly the national average 1,0. Often, rompanies and their consultanls engaged in the site screening process focus on locations with less than it 1.0 average, • (liven outer attributes, a city will not necessarily be eliminated from competition because orthis score ■ I he ntanufac uring wage is compedlive in terms of olher Metroplex locations but is high In comparison with sonic'fexas rtnal areas ■ 0111ce wages are I7 percent below the national average, a definite advantage within the Metroplex and nationally 0 i i • 0 Lcdll tl7l. NIIAI s. fIUI Pining Cutaalling . _.,..~..p.... . wr..w....rwWIWilHft. rvr.. • w r, 0 • 0 ~ , ~;.......nsa, r....., s.x~n:w.arn...ro by<-: v'. n. I)onton's Cnhcal Success Factors CSf s U/M-AMAfI4EMTTIlN~ IlY.ASEtY IM~N~T ApITAN'A-_#!M~IIY MTERIAI a None of the employers inlerviewed even mentioned labor-management relations as an issue of concern ■ Denlon's workforce is heavily non-union, with no prospect ofchange on the horizon m NI.RB statistics indicate IliaI Denton had Ilse fewest union elections per number of employees ofany of f the eompelilor InCalli JIS Ibl the period 1480.1991. During that lime, unions were certiAcd in only Iwo elections ■ Al least one major employer indicated Ilia( they would lie disturbed to see Denlon recruiling businesses wish a significant union presence in its workforce l I v I )c rile ~u fUwl•Ilquq 1!MI~I 1 CONI MI NIIAI (Ti lo- pllli Faf11N5 Censuhlug ~l Q F :I1 ! ~ ~P p • • • i (Tenlnn's Cn6cal Succus4 FNClurs ICSFN? DENTI~i'$1~1A_MARNET_lI~RNM$_A~E.FAY,~~I[~_~!!~l~l~.~~ SUMMARY I.~NoI LObw L~bW L& W Awmalimy OuLWy Cwl/ M&MOMM4 Oiaysm, TX • DMIu, TX • O Slsla' IX • 0 DENION, TX • • • COINq IX • • O • WONAMW, TN • • O • O I', N mo. It. Nlvu side, CA • AA 1 • Lv unw 1. CO Luw Rating O H* Rating „an 1111 N I IAt I l- I'llli I~uaUIN ('unsullin~ • p • INFRASTRUCTURE Transportation SiteslBuildings Utilities Air Quality lrlfr85lruclero caasrubes those allributos which form Ills underlying foundation designed to support local and regional aconermc systorns and growlll III oconomlc development loons, infrastructure consists of utilities (electric, gas, walor, sewer elc ) . Irdosrxnlahon systorns, available silos and buildings, air quakily, aril other factors not highly relevant here, Cask for ullra:Ane;hrro-based services and products cull vary rrlarhodly among regions, states, and local arens In the U.S dad i,bruad Thus, (hose flans wllh, for uxample, heavy usage rates, may screen areas based an certain inlrastruclure Im,loIs at the oulsot Normally, howevor, Mesa costs are evaluated as part of the total cost of operations. Moll us koy III the situ seluchou process is Ilia presonre, availability, find rehablllly of inlrastruclure that will support the noods III area businesses flow and rule the hllUre l.ocalloos with sound and modern inlrastruclure that evolve In response to Ilia I needs or business are more llkoly to ho successful In the economic development markelplace. Empirical Evidence IUlurvlemwe i ilommally gave Denton high marks for Ulillhes and Ironsportafion, but almost unlversally expreseod concern ghee Ilia lack of available bwldlnos for prospective new businesses, There was also signl}Icanl con tern explussed I about Ioudeyuulo preparation of available hand for building ~Q Wllh sur11 good accass lo DF W Angell :Ind with kilo Melraplax moving nollh, we saw land hero as a good holding " 'Rood ro lwnrk neat Munlctliol Aeporl olosl he expanded " Q I I'rolloom duvelulunenl would hUC II lot holler If ellhly selVINU was In place at UrldeVUloped sltes." p~ I lovin, I It]( d eupurl rut eaecunves ru lly III and ual Uf e, a nllilm plus' • c~ • t partnn's Cnbraf Succors Feclofs CSFs f DEIfTON'S.UIBIR.MANKR CNNOMIN$_AN FILVIWtE f1_N ECINI i~ BflIEI~~~ ! SUMMARY Labew Lebo AvaXaWnfY OualNy Coull IAaMN ft# Rbna Grayson, TX . Dania, IX . O 6uroa, TM 0 • V !J DENTON, TX • . • COMM, TX • • 0 • Wnuanlaon, TN • A • lbna, IL • \,7 Rlveultle, CA ® A • 1 Clarke,OA • e Lamm, CO • LOW Rating O Nigh Raring !.w0l IUi NhAI 17-111111 hintus ['OnsnlUNy i ♦ 0 0 • f)eMon's fnlical Succass Facloas CSFs EMT T 1l 1Il III ASE MAlN ~wisnnr 401 a With the exception of the need for better and/or more road in the Airport vicinity, Denton receives universally high marks Ibr the Irensporoation access it alters. '116 is a powerfld .ompetitive advantnge. a Virtually no interviewees even addressed the utility infirasiructure situation and none indicated that walcr, wastewater, solid water and electric services are a problem. Utility costs and service are co14lpclilive a I mine's hack of spceacalive buildings Ibr purchase or occupancy was cited as often as any other single Factor as a problem fur economic development a While ille city call hoasl ol'a number of large parcels or land suitable for different kinds or llcVelopilleill, 01e INC't IInU Illioly ale not flllly solved by I1lilllles and have not been pohllcly priced llmlls their economic development value • F • LJ Void (,0141 all WtAl 181'HI1 N'anrus Cnnsahing 1 4, 0 th L a45'',t i 1 Sj +W L " ~,t!t, • e • TRANSPORTATION In today's global markelplace, a location's competitors for investment can be found around the world A location is well-siluated v,hen it is able to access and serve domestic, and mcroasingly, foreign, rnarkols After geographic location, and its attendant transportation costs, the key transportation delernunants are the physical inhaslructure ports, interstate and highway networks, mulli-mode transportation facilities, and rail facilities At the MSA level, screening typically occurs based on the existence of these infrastructure attributes At the local level, more detailed infoimalion is analyzed, such as specific highway and rail connections. i i EMPIRICAL EVIDENCE Donlon's Key Transpodalion Features. • Central US location • • Proximity to DFW Airport and Allionce Airport • Donlon Municipal Airport with expanded facilities Position at mterseclion of Inlerslates 36E and 35W, as well 4 as other nialor arteries" w Daily freight service from two railroads s ~ J i • • • 1 rlenlon'6 Critical Surce6s Feclofs CSfc 1 DENT~'8__TUAI~$~`l~~~~~~~T~~E AMD DTI eT env is LTWLT ~F t ■ With the exception of Ifie need for betfou and/or more road in the Airport vicinity, Den Ion receives universally high (narks for the iron sport a lion access it olrers 'I'bis is a power I'll competitive advantage. • Virtually no interviewees even addressed the WHO infrastructure situation and none indicated that water, wastewater, Solid water and electric services are a problem. Utility costs and service are aaupell1we • I)eatou's lack of speculative buildings for purchase or occupancy was cited as ollen as any other single liuctor as a problem fin economic development • While the City Cal) boast of u number of large parcels of land suitable for different kinds of devclopmcnt, the 14t Thal malty arc not fully served by utiiifies and have not been publicly priced limits Ihcir economic development valve I j f • CONI V[NtrAL I ~1'111! M'anhrs ('nnuluhiug I i • w • • ....vn n. m,r..~•. de.«~...h.arln w.+w.,•.hN+.at-4ux+!IM>r,✓ro'[Y•rpa'MI}H51T Y1 NTM. y. ® t)enron's Critical Success factors (C6fs) a With its combination orair, highway, and rail accessibility, Denton is an appealing location for businesses with signilcam transportation needs and is poised to play it signilleant role in NAFTA. related trade a Wide Alliance Airport, with its stale-or the•art inlet niodal lacililies and high•quality developed ndostrinl parcels is it competitor with Denton, proximity to it also offers significant advantages to cxislurg and proapectivo Denton businesses ■ I'he only issues raised by interviewees relate to the need for more, or expanded, roads in the vicinity of the Mrmicipal Airport, and the need to ensure that development along 1.35[: does not result in overwhelming ilia capacity of local transportation arteries • u:~ dS i tJ ~(1 id ~ ^v•1 5~~ a r N i i uNI IN NIIAI IV- i'I Ili h'anUrs ('nusuhink • . f 1 1 s ~T ~ li 1 1,} I ,y rtr ry~~ y~~ i } • G~ • • SHOSIOU11congs CONISULTING INSIGHT III(! avmlatilldy wl ready !At!s anll Iludlhntrs Ib one of the mosl cnllcal faclnrs III Iha locallon seledum process Wlnle OL and b,lddutq avallalllily Is lype:ally screened M lire t(wal level tiller Iho search has been uammud to a handful of lecahons, hrnts wIIII anlque needs Ind spncdu;ahons may nrlke as mined screen based en avadabdlly TIuIS. Ihls Ieplesl!rtls a milical awlor le closlilit; the deal uud. surnulenns uI nlakuu] It successfully Ihroagh Ilse nuhld screen lo-gtonr wd colnrimmalus aril be pllyulled Ill accolnlnodalu mw InvesIriwO Indushlnl sdesrp+uks lunfsl MOM Ihu telluwlnq L.nlel lit. wnwnq olhors, In sohsty Inos uxpanlhnflauluualuq) colpaale Inveslolunl needs Applupnale slid and expansion polewhal Controlled ownershlp and wdlulpness lo sell Dllucl, trlylrquehly Iughway road access • Atrlllty to pfd large sties logelhei p (I , 40 acres of ulalu) Sah,fal'.lury lupwprallhlc, and snhsol coudlwns. 41110 slulacu drainage f Ice of unvuonnonlat problems I 111flpel industrial tlnunq felt nifnslnnl level ntdlUes lalar Ihu silo Cnnglallblu suunuwdngl laud use • 1 s6lhhshud askngl pllf,l! Ilnd sale Iurnls EMPIRICAL EVIDENCE Vnlually all nlervlewoes expressed concern over the availability of ready sites and buildings Another factor unpechng development of the good supply of undeveloped land and hampering marketing oflolis is the lack of eslabhshod asking paces and sale loans Several developers and business persons expressed doubt that large scale development would soon occur even if Inure ready sites and buildings were accessible gal c;i Strong need exists lot a high-quahty Ind(rstnal park developed by the city or private interests " i1 { • 1. I cononwc development would benehl hum utllhcs hung in place up-front at undeveloped sites AVvhdlr Il woull he a po"Illve Iaclor for O("moll to havo more ready sites available, the fact is Ihal loo mud) etflll lsls Indwlren Ilafl•IS InlIl Denson In IllAc Iles Ilse next logical place to develop in Maybe anolher 5~ 10 yeafs " O I'i~i ! p Ir~,lb ,h,I Y,Irv)lit llrhN •,i illlu phi Hl!I II III wllll!OIIIerB afe sllllply asking loo much lot d it acn! b~ 1 w • • i i i f I j Denlnn's Crdical Succass Ferlnrs CSFs ~ a Willi its combination ol'air, highway, and rail accessibility, Denlon is an appealing location for businesses with significant transportation needs and is poised to play a signiflcanl role in NAFTA- related trade m While Alliance Airport, with its state-or 'the-arI intermodal lucililics and high-quality de~cloped industrial parcels is a competitor with lkwon, proximity to it also olTers signiflcam advantages to existing and prospective Denton businesses m The only issues raised by interviewees relate to the need for more, or expanded, roads in the vicinity of the Municipal Airport, and the need to ensure that development along 1-35V does not resell in overwhelming the capacity oflocal transportation arteries { i I I ~ e f CUNT 101 NIIAI, f) V1111 Wanlus Cultsulling f w.w..ww.-.-......4y.w.__ ~ ~ r...r/.awrYrYi.a•r:r. rr rr-.. ID k a • • ilnnlon s f utrcal Success I a(Aors (CST's) OENTIN'S ~E11E1C1}~E~T_!A NINC~Y ~.~~Tl~l~_._~Y..~!!5$__`!~r_!!S! #STNiI$N _A~InII~_ P_FAMOM..111~.AMM MAN ~"E WI $ITE8 Cl Y"TAI. ¢E_M_U. _ AIM M AN T ■ l kwon can ollcr acres of available land that, for the most part, is not Rilly served by water, j wastewater, and clecilic utilities This is a detriment to most expanding or relocating businesses that rived to begin (Operations immediately Denton is not currently prepared to accommodate meaningl'ul new invesrrucnl I ■ fhe economic development marketing ell'orl is severely crippled by the dilliculty of obtaining any, let alone realistic, asking prices and sale terms fix sites, A recent listing of available industrial sites suggested Ihat fewer IhAn half ofthe available sites had established sales prices of which the City's Cc(On(Ooric development proti ssionals were aware. a No spec buildings arc available or planned • 0 l :vco if numCro(Os availablC sites were fully served, or even il'a number ol'spec buildings were available, y ,t rapid conuncrcial dCVelopmem may not occur in Demon due to the availability of significant deVclupably parcels in closer proxi n ly to Dallas, fort Worth, and DFW Airport r ) uru nr unA1 'n I'llll H'antus Consulting • • C w N J v 1 1~ 0 w • s • UTIL/77ES s f In loduy's ecnnonnr, drrvelopmenl environment, the availahilily of adequale elmclllc powel 1s suldorn on lssuo, rehabllity and cosl are much more silpnhcant Eluclncily cost 1s Ihu u11Bly cosl which Carl most ohon hllhlence Ihu locohun dur:rsron For Iellh onoroy nsors, uloclricdy Can equal live lu Ion powcol or Moro of location depondold operalino eosl. Except for very larou users, hloh eleclncdy cost probably will 1101 rtlssuade a sine Booker by ilsolf, bul can add l0 a docision to look ulsowhero. i ELECTRIC UTILITY RATE I COMPARISON FOR TEXAS MID.SIZE INDUSTRIAL USERS (OCTOBER t994) 11 1 111 75 000 ?(),goo 70.000 - 1 s,a0s !3.443__-_- 11,007 _.~1AI • 15 000 10 10.000 5 000- ~r ,,k r 5j1 ti a I. u w • d 1 1 Denlon's Crdiral Success Factors C5fs DENTIN'S DEVELOPMENT_ IS_NINIUM UY-A $N jtjA 1f_jWy SM ESTABUSNED-PIRD PRICES fIN_ WON If__ E AVA ix O M 1 INFfII $ITES_ClSER_T!_TNE_C.E_II OF Mf NPtQ( ACmm me 111 ArI r Ocolon can ol)er acres of available land that, for the most part, is not fully served by water, wastawarer, and electric ulilities This is a detriment to most expanding or relocating businesses that i need to begin opwaliona immediately. Demon is not currently prepared to accommodate meaningfid f new inveslntenl ■ fhc economic development marketing et)or1 is severely crippled by the difficulty of obisining any, let alone realistic, asking prices and sale teens for sites. A rmnt listing ol'available industrial sites suggesled that fewer than halfofthe available sites had established sales prices of which the City's economic development professionals were aware. ■ No spec buildings are available or planned • l:vcn if nunrerurrs available sites were fully served, or even if a number ofspec buildings were available, rapid Commercial development may 1101 occur in Denton due to the availability of significant developable parcels in closer proximity to Dallas, Fort Worth, and DFW Airport A ~ i,UNI IUL fN IAl 1'1111 F'amus Consulting r A 8 r, • • i i I , 1 Ilenton's CNUcal Success factors (CSrs) BURON'S NTRITY_$ NCE_I~NO_04$1 _UE_l1NFET-M-1 . l L_TN~ ■ l Ililily costs can represent a significant porfion ol'overall operating costs, and are important to attracting new businesses. I Iowever, virtually no concern was expressed by interviewees about uliIity cos(.,, or availabilily I r KIHni'AclllcIII 11f Dcll10"'S UIiIit les electric, waslewater, wafer, and solid waste Iles been of high J duality and new dovelopmcnl should nut present undue burdens on the systems in place, a result ol'an 011'ective planning process ■ Denton ollcls strong telecommunications service, including a fiber optic network availahle Cor lie-in by businesses While the dale of its ctment wilily services leave Denton in a strong position, a number of inlerviewees • suggested Ihat Denson should he extending services to more undeveloped parcels of land to make (he City more auraclive to potential new investors 1- L r i.l'. ~ s . 1 1 r y 1 1,111101 N I IA! ~ I'I III M'anluz ('eirsnhiuK • d rt . ' ~ j~.4.g•~, }~".J.at lies?ji i • AIR QUAUTY Large scale manufacturing clients regularly exclude all non-attainment areas from consideration altogether, rather than face the associated regulatory complications and potential controversy Because most air pollution comes from vehicles, federal regulations for " Se; iuus" and "Severe" non-attainmenl areas can effect even large non- manufarluring employers Therefore achieving attainment before reaching These levols is absoluloly critical to long-term economic vitality. i r" cl I • w 0 • ~f Uenron's Cnlaul Success Factors (C3Fs! DENTIN'S YTRITY SOME AND CISTS ARE Ci. IIPQITIYE ANA "_MjT AMW UFICY TNI ■ l itiliry cases can represent a aignilicanl portion ofoverall operating costs, and are important to attracting new businesses. I Iowever, virtually no concern was expressed by interviewees about utility costs or availability • Management of Denlrm's ulilitics electric, wastewar ;r, water, and solid waste has been of high duality and new (level oplent should not present undue burdens on the systems in place, a result of an cgcctive planning process i a Donlon ollbrs strong telecommunications service, including a fiber optic network available liar tie-in by businesses ■ While [lie state of its currcnl utility services leave Denton in a strong position, a number of interviewees sugl;csted thal Denton should be extending services to store undeveloped parcels of land to stake the Pity more attractive to potemial new investors r I l I i,Ultl iI jI NIIAI I'lill humus Cnnsuhbr~ ~ i 0 0 • ♦ ♦ ) a I t 17enton's C,I LI m ess Factors CSFs) E_L~i_'~ i AIA_lrAiITY ISSUES MAYE THE PITENTINI T~ INTEIIAE Wirll BEMT~N'S 11simms AtjIRY Tf AT ACiANA IIETA~11 f 1 i ■ Hle DaRas/I.I Worlli Mello area, which includes the counties orballas,'I'arranl, Collin, and Denton is dclassifiesignatiedon by the IlS I{PA as a "Moderate Non-Allainment Alca " Denlnn County , is included in this I ■ I lie Nmlh Texas ('lean Air ('oaliliun (N'I'CAC) has developed an approval State Implemenlatinn Plan and irutratcd ztrucgicx to reduce emissions and achieve allainrnenl. Despilc lour exceedances in 1994, prune levels have already been reduced, and the Regional lAsA nfiice expects acceptable levels in 1995 as ntuo emission lesting, vapor recovery, and other strategics are ntroduced. Addilior.afly, N'I'C'AC's etl'eclive leadership flay crealed a very strong relationship with the IiPA. ■ Failwe to achieve and maintain good all quality by 1994 can lead in iedesignalion ol'lhe Dallas/h Worth Mello area as "Serious" in 1998 or 1997. Federal penalties ror a "Serious" designation include • ♦ Adding 9 counties lo [lie lbm now included in the Moderate Non-Atlainment Alen • Rcqun ing ull'scis I'ur any source of 50 Ions/year or any expansion oronly 25 ions/year, at a ratio oI' r, 12In • Itcyuiiiog clean luel strategics fiu any vehicle heel of 10 vehicles or more (including non- 1V IHanul'aclnrer's Heels) ♦ Rcqufi ing a fiulllel 9"o reduouon in oboe levels Iraonl IIIC 1990 level i 1 CUNT!DI NIIAI t~ 1, 1111 Fan ills Cullsollilig ♦ 0 IlenlnD s CrJir,al Success PaclDrs Ctif s~ OENT_IM'S.INFbAST~~CT~i~E i_FfI1S A_.MIIIEp_6 T!_ Ril'ENi1~1 A SUMMARY _ VMM_M tlan4mlatbn 3nammw ya 041fids All L"Ify ILxm~, TX O 0 . Dk NTON, fx . 0 • `J O O lAWlvinr.. 1N • . 0 K.vm. It O RNon.k- CA O Cldiln. GA • 1.. r I YMl MII, 1'O ~ Low Ralin 0 •HYyA Ralkq , 11.11x11 rr♦ li.lY lrl.... lr11111 III YfLillll l~ 11(IIIIY RY(MNI YIIINtl 1.~~ IILI falepury , rY~r11nQ1~ IM1~ 1 PI III Vanlus consnlliag ~ d , • i LOCATION MANUFACTURING PROJECTS L i 1 i Denton 1 • ~h AarM (1 ii i ...+w~.•r....w..w...f~_ ~ ~ u rrrY~I,~L' u...urarrl.:i. iRtt:. i ~ ~ 1 • henlrnYs Crdlcal Success Fnctors {CtiFs K.i!®N'S IMFRASiRXCTMRE_OFFEN IIXEa BAR..T@_ PO VIAL ~ MESS KI ST@Rg SUMMARY /ranXpalalpn SkaWNLAWIngs Looitwl AltQualdy Oluywt, )x • 04's, Is • • O Braros. Ix O • , . DENTON, TX • O . O WNUPP..I, T14 Xwm. It • O 0 Ntrerbde. CA 4 4 O x,/ i CWho GA • • I A1111NlI, Co Low Ralulg O High RaIlrq 'I I nibups hdl hl uu oolwie i./uJ w anenu%(q it,$ NnlWAI aMkoWng Iha calppy htyd vp) ) l IIII NhAl i' P1111 Vanlns ConsHlling • I M Oonion's Crdlcal Success Factors Curs oEMT N_ IS ST_MTFBOR YSIT~ATEA. ~ETWEE~! THE IUTIlI~~~~T x~ ~1~~~_~A ~ SEAR611_AAEA 1Ul1__At M!lNIN~ Few 3101 fIMTATiNRIES ql~1 ANB__ ~f~T~lI~TINI 3~CT_!~S ra Pill I fanlus Consulting's experience indicates drat the majority ol'searches for manufacturing riles are 1 r10W conducted in the area shaded on the facer page Although the area extends to a point wilhln reach of Dcnion, the Ncl winains that the city is not in the area ' s a !terror's location het Wcen the IM111Nluchuing search area and Mexico conid nicely Iwsiliou iI for 1 NAI- I'A-related growth Menton is within one-day trucking time ol'the entire manufacturing project xcalch area and h afro has superior nortb•sorth linkages that snake it a natural distribution paint Ibr products being shipped to and I'rnrn Mexico. ■ Another competitive advantage is proximily to DFW Airport and Alliance Airport. When combined wish highway ;Ind rail accessibility, these assets give Demon a superior profile for distribution and • 1wrispollation rclalcd services • Demon should he utu;lctive to No11.11MI111tilcllning employers because, among other things, it is located in a stale rind heal a city (Dallas) Iliac are hilt spots in the rllilce location market (U7a Ills NI IAI W 1* ~ V` 7,1 CK) I'III I Fwntus Cousulthig s► r 5 t' I Ilonton's Critical Success f aclors (Cus) f I n N S is WCATION 1$ A 901OPm AWANT9+E Ffl[_A nos Ml w + _ f MANrf~lrNl~l~ ~E~A.tEN II~IE$TME1~1' SUMMARY At wo1w lo! As LotN,oe lot ULot~ w w.wwlw~iw wool -taut wu"somo r MWMIIIMI MMNMeI Disallow" (Hayson, IX 1 Dallas, IX • afazos, IX Q Q GEN70N,TX t~ Collin, IX wdbanreon, IN Kane, IL 4 f Rtversade, CA Clarke. GA Q I.Trlmel, CU Fu f t c hh i i O Low Ranllg 0 Njo PA(wq "7 . (B.1mai ha wl nn wile nA cAwl h ANwonl'isui m M INS Paoli) I.i)Nl 111114 bAl V( ~5 i'iiN F'antus ('misuitnlg ~ .r..w...t.r ~w+.r+,w. Yf0iAi4r•4 V'•. • - A • • IMAGE Business Awarennss Economic Regulatory Development Environment Program Denton's Image a • I n o ~ G - _.,......r..~.M.. ~ ur..rrr-rYYYtilYii n' •'u r'* ~ t Sri ..r albs "tits), i f C~ f f ® '-enlon's Cnllcal Success Faclnrs {(:SFs~ Ir NrQNIS WCATION_ISA-COMPETITIVE ADVANTAGE fQtATTWTMg_CEOT IA I~NM CILUw AND MANUFACTININ wEtATED IIWASTWO SUMMARY j As Watson la As Ioeshon for ~a laoHae fct i Nanul"Im"lij Whaa-6ollu WatNwobeal mwsle nl In Yaatnlanl NW*Am Grayson, TX O Dallas, TX Krems, rX Q Q OENTON, TX i CoUln, 1 X Williamson, TN Kane, IL f Riverside, CA Uatke, GA Q Lamm. CO Q f 1.1nv Railing O High Hating f f t Halinea LwaaI on ultnllx clad in di fmom "clkma of IN$149PA 1 f:UNI IN Vk NI IAI -'S !'sill Fatitus Consultloa • w • f r Denhro's Culical Sur,coss r`aclnrs ICSrs) MENTON'S_CMRREMT_IAIA&E PIES EMi$ A.AAlIAIN ie_f~SllSMle UMSPMEIrT EFfOIra • Subjeclive images are a key economic development screening factor, ollen eliminating a location, whether state or city, from corsideralion belbre other more positive factors are considered • Images ale ollen hatted Un cerlaill CHNily diSMIlrhle tcattlres blot serve to obscure other area I strengths • Images amy he derived tiom historical walls but often do not match today's reality • i)elnorl has a uwhi-lilCeNd Image plOblcm fart of the pr lern is a frmclion of geography; the other phenomena impacting negatively on the city's image are very much within the capability of the city to rasolve The key issues are E • tvLrly view Demon as an attractive lawn in northern Texas, near yet separate from the Melroplex Him, IiN val olls reasons, is not destined lire the type ofrapid growth that has occurred in many areas rI'Ihe Klelloplex Dcspilc the pclceplion ofmany in Demon that the City is, or could be, the third major • junslhclion in the Melroplex (lire 'Apex"), many Melroplex developers, husiness persons, and i residents do not see Denton as a logical exlension of northward growth in the near term. They we it, currently, as all appropriate home for select niche businesses and housing developments x_y r h r1 1 4 1 i,(INr I)l N I IAI I'lllI F'antus Consuhiuk • aa. • JW Ilenlan's Cunrat Surcass f~adors CSPs DEMTIM'S_ C II~EMT .I IA E ~IIESENT$, A /ARRIEA T¢ ECONfMiC iE1 El_OMOO I EFfNII'S (C~1lT~l • In a 1991 survey cunducled by The Survey Research Laboraloly at UNT, only G.3% of wletroplex respondents indicated dial they Thought Demon was a "City in the Aletroplex." • In I lnrt same survey, only 4 9% of Mclroplcx respondents gave any mention ol'Denton as a place to conduct business, below the number ofresponses for Las Colinas, Addison, and Mesquile ♦ Purllrer, 1'1111 Panes Consuhing's interviewees as a group evidenced a "schizophrenic" se1G mage o1' Denton there clearly exists indecision about whether Demon should distinguish itself from the Mctroplex or seek to solidify identification with it I+ I )croon is viewed by some segments ol'ils own business community as "anti growth" or "anti- business," a perception IhaT, in turn, has now become shared by some outsiders 1 • • The schism between City governmerrl and some elements of the business community is real and results Gum it number of things, including miscommunication between the groups and, perhaps, diflercnccs io how "economic development" is defined I his rill, and tic had feelings iT has cngen.; red, have helped feed the outside view of Denton, I t ' not loo widely-held al present, as ;,nti-business " I;al'urts to merely cover-tip the problem are O unlikely to prevent ooWders from Iearningofit I• OS r ~ i 1 17^ r fLrvull,lw• IU4.f connurNunr 27 111 [11 RaeUrs CansullinA ~ • O t • y'S t A r l Denton's Cntlcal Success Faclors (CSFs) r DENTON'S CONTENT i E FRUMMUiT$_A_MMEN TN-MMAINNIL1MT RKYS LCUT II • The City regulatory scheme is viewed by some, including sympathetic elements of the business community and government officials, as overly burdensome and slow The one senor of City government that is subject to the most criticism is the planning and zoning function, which has begun addressing the complaints by expediting certain processes and inculcating a more customer-friendly orientation among its professional staff + Deoton's economic development ellort, while a reasonably strong "traditional" program, may riot be cranpclitive with the higher-powered programs of compedlor locations • Demon's current economic development effort is unlikely in produce results that meet the expectations ofkey members ol'the DLnlon community. The program is essentially reactive; J while effective al prospect handling once Denton makes it to a final screening, the program has ! not been proficient at targeting and atlracting interested businesses • ♦ The economic development ellort has riot successfully established a "brand-image" for Denton or posilioncd the City as a suitable location fir business within the Metroplex. <Ir r ® t36 i U • r, ,r i.. r I 'rd I i{ 111! I I I 11111 Al g' 111111 Paulus Consulting V I • c~ m • TAXES - CORPORATE INCOME AND PROPERTY PHH FANTUS CONSULTING INSIGHT Corporate lax, burden open receives disproporbonale emphasis compared to Its relatively small Impact on actual operaliog costs I lowuver, business laxos are ollen use, as a proxy to measure slate brrsma55 climalu and reCepllvily to buSaPess growth I larder to rl+rarifdy this recepllvily cart rnflwciwe business success through the speed wllh which permits ale issued, among olher the cgs (:r',rhola'e tax levels, along With overall lax burdoo may also be used as a parliat measure of the effeclweness of pirbtie sector nianagernent Very high or extremely tow laxes, In combinatum with perceived deterioration of public services or infrastructure, may ridicah~ it history of unwillingness to pay reasmiable costs associated will) government UEllmalely, such an envlronmenl leads to higher cods either through inefficiencies m rerpmed services of Through higher loxes when disrnvestrnont call no longer be ignored Property (axes while highly visible, are generally a small part of Ir,(al hIJSine;lS COSTS T his is because they, loo, are seen as colical to husoiess clunale, and abatement is among the most used development im,entives • I101WIty (axes are usuatly the easresl - and often the only - cost a cofnnn nrly can drreclly reduce Tax abatement earl also niah,r a 111.ntpnal bul decisive difference at close location choices Properly loxes are the most viable Indicalor of local government goalily and fiscal heatfh I of ',perdu'. types of cornpanies properly taxes can be a significant cost (e g an inventory Iax for wwehouses or tax on In. if h ni;iy for (ash-poor,,inslumtenI och high-loch starI ups) ll ,r_ ~`Irl-y ~~T• I'~ X' ~I~ YM1~M'VY' Ir ' l 1~~Ylir C~lulf~fBlf 0 ~ F BS'~f{9 (f~E(il4t~. rlpa 'r 1 f;' ~O _ ~~F mt~l x,9aR.,,( F 1ti r~ _ k t. _ At (,l"A' Itcallon: _ Texas 4 5% lax o f of fOCIlVelY er1unIS Iederat Ia~x<t t hrtrfh' on uuf cont! r ~ e " California 9 3% aII i thl,s to'nel income, e ® Ilectwefyequals Icdend taxable incunic 1 ( Colorado 5% applied le'rivt uunn,e elleclively ledentl j taxable incornc Georgia 6°iu applies to Income allocaled to Sorngw based , ,lieny and salw, also apple's Nirl / ~y Worth I dx of ufi to $ri 000 • I ennwssr`r' W'o excear lax ❑pf,hc~Iii mil rairungs a 1 i ell-v.bvety fedanrl I ix iblo uu'onm _ 1 ~ Qom, . -,.~.~~......~T..-.. ~ ~ • to • • i t NIL I Denton's CRhCOI Success Factors (CSIrs) -OPTI-R's C-VRsE#T._IILV* PRESENTS A PWIFJITI ERSNIMIC 6E11EtS~MEiIT EFFI ITS • The city regulalory scheme is viewed by some, including sympathetic elements oldie business community and govemrent officials as overly burdensome and slow • The one sector of( ' 'ity government Ihat is subject to the most criticism is Ilse planning and zoning function, which has begun addressing the complaints by expediting certain processes and inculcating a more customer-friendly orientation among its professional staff • DellluWS economic development ellort, while a reasonably strong "traditional" pmgram, may riot be competitive with I Ise higher-powered programs of competilor locations • Denton's current economic development clPort is a likely to produce results that meet (be III expectations ol'key members of the Denton community. ']'he program is essentially reactive; while ell'ective at prospect handling once Denton snakes it to a final screening, the program has not been proficient at targeting and attracting interested businesses. • The econoric development clliorl has not successfully established a "brand image" for Denton • or positioned the city as a suitable location 6)r business within the Metroplex. i 1 O • ~.orrr IN NNAI 2K- i,1111 FAI11nS Consulting • O • • we... ,..,...<ronrv.eiWv.n.~nms.MMr4:V~.pRov,!YAI^4YA`IDU+b4qK;+t'h4, t7 f henlon's ChUcal Suck e~ssyF~actnrs (C SFe) iEllf~11_S~ES_~II TE~_~.!~TN~ ~E~iATIMI AMA ~ f~M ~ a The image of H slate' S/Iocallly's lax situation, as opposed to the reality, is critical in the location derision making process. Companies often perceive Texas as a slate without a corporate income lax when, in lace, the 4 5% tax on "net taxable earned surplus" is effectively a corforate income tax. In any event, [his tax is significantly lower than in each of the competitor stales identified. ■ Texas remains one of only I<wr US stales which do not tax personal income. This may appeal to cmpormc executives wid to companies For which professional recruiting is important • Texas now allows and all of lemon's key tax districts have adopted the freeport exemption, which exempts certain business personal properly destined 11or oul-ol'•slale shipment from property taxes This should greatly enl+Hnce the city's competitiveness with nun-Texas locations l rr whnlesltlc/dislribulinn businesses r : r ~ ILr C! I ll ~ .J fA ~r ar O 1 vl • C9 • 4 J) s. LOW IN NI I A I t- 111111 Fanum Consulliaq • m • • Demon's (:nilcal Success far.lols CSFs PENTIN_ UCMS NNAIN _ F ATFL q#jjNt~NEW SUMMARY &onamk poopow ry EInMNrx Tax" owlemp"M al"o1111NM AWNMwE{ /loEla"w ul+reon, lx . A . INIas Ix • O • • IYaru> 1N O • O DENTON, Ix l7 if • f.[x" Ix • • 0 NUwmvm 111 • . 4 • Mare IM0101 I:A LIIAC 4.A A 1] f 'I r' ! ldnmm (A) V ® I.ow Rdltq O n.ulq IVf I c r ( ItAl riyy lyyrJ UI uAxlN u4V MI rclbrlr Of Ir%kNlal WJIE WYip IM MNy1xT 110EYx~) 1 Lutll IUI rfllAl lU- I'I III FEnlus Consulling ..-.~•r~.~.r_ 1 • rr.w~•r~..WIWYhY ti S W'a ~ . • • • Quality of URA PHH FANTUS CONSULTING INSIGHT endent on classical location determinants such as access to raw materials (for traditional ufaclunng) or markets (for consumer products), new location decisions are ofton based on relatively LNeverlhploss, he nation's economy malures and the business location decisron-makirg process becomes less gible quakily of life factors such as housing costs, recreation, cultural amenities, came rates, health , Pic lity of Life" is typically defined as the s m of up to fen factors relating to lifestyle and non-workplace onment Which factors are included, and how they are weighed and assessed, vary from person to n, niaking any attempt to characterize quakily of life risky each cOrnmunity is a bundle of diffe onl characteristics, which may not compare readily, arisons among locations are oven less reliable, except in the context of specific preferences For ason,''lil I Fanlus does not include a summary page in this section of the Report rlheless, companies and the individuals they employ do consider thesefactors seriously Quality of ctors typically come into play once the screening process has bean narrowed down to finalist itinitios or MSAs Therefore, rl is important to identify the key Quality of Life strengths in each unity and present them clearly as part of any promotional effort. 1 Rating Climate ~ I ~c' of recent p aiio{n F81`11LIS But the prefo MBAs climate "Climate" to be the dividecriterion d among for "personal was almost exactly leading warm dry." , - warns tern erate,' "four-soason lomperate, and mountain Almost every U S location ifs \ fits one of theses climate profiles, each of which appeals to about a quarter of the survey Q ® populalwn r, • , t a • 0 I • e i Donlon's Gdlcal Success Paclofs ICSFs~ _DWON 1ACMS_A.BRUB INA I FP ArMKWNM HSINESS Wfij W SUMMARY fco n* RIMI M" lioffalsf TfxH QIVNOp"r" oaNlfOallmM AMNIM/f ►lowf cneywo. Ix • 0 • Ia1as Ix • 0 • • gams. Ix Q • O • OFNTON, Tx O O • c:1110 Ix • • t~ Nvol"w,III • • V 4 . xjr,v K ~ ~ a o E 1lners J (A V 0 O r.enle I,A ( 1 ~~r,rnoi rx) o • o 1 e • , Low RAnfp O • HIO PWfv PIANO Amu w (loom cAnJ m Wkft of IM ROW 6"Oft" IM ca"O" le"N") I,. "dui Ippl CO NI IUI. 11 f I AI. 311- III III Famus Cons uhInµ • Clrntari s Cnhcal Success Factors CSFs i ENT-IN A_iFERE A_4dWTY #f tIf(TNAT W U IE ATTf i THE Lg MANII IMES~S$AD ~IEyI_~EY IOCATIIM DECISIAN-MAIIEpS • 1)cnlon has many fealures that, while irrelevant or unappealing to some, can be assets in attracting and retaining business ■ Deoum's cost of living is attractive relative to other locations in file Melroplex and to some competitor Incalions nalionwide 1 ■ The presence of the major universilies is it major plus, offering the public cultural and educational resources unavailable in other conmtunities ol'similar size. However, interviewees feel that in many respects, the city has not leveraged the universities to the fullest ement possible. ■ Menton is widely perceived by current residents its "a good place to raise children," attribuled to, anwng other Ihings, its low crime rate and good access to recreational opportunities ■ Dcmoo does lack soon of the amenities That relocating businesses open prefer to see, such as a variety • ofqualiiv restaurants and hotels and a choice ol'personal and business service establishments to Pali onl« The absence of "liquor by the drin6" .toes not enhance the City's image as a modern cununurri(y • Phis point is hOISICIC(I by IIIC liodings of the UNT survey cited earlier- Only 3.1% of Melroplex respondems identified Vernon as II place to g o t br entertainment, 4.9% as a place to go • chopping, and suo as a place to go om to cal These figures place Denlon below Garland, • I.e1yI5VilIC, an(I NICS(illite, among ollhers. Pi,rr nl ul r n ~ CUNI g1LMIlAt y I !'11!11 Fantus Consulting iV{~l • • W.Ll)enimrs Crdical Success Factors (CSFa) RMWO s A-10 r IF HIR T T w KAMAM"rruM IftATIIN.IEC MN" [A#M) • The civic of )rf to beaufil'y Uenlon and its gateways will enhance long-term "ctuh appeal" a The public school system is viewed as reasonably strong, receiving mixed reviews from interviewees • Some were very pleased Willi the schools, noting (hat they olrer curricular and extracurricular prograrns unavailable in locations in which Ihcy had previously resided • Many interviewees believe that Demon's schools compare ravorably with other Texas communities but are concerned (hat standardized testing scores are not as high as demographics suggest they should he • An ollen•expressed concern is that failure to expand the tax bane could result in an inability to fund the schools a an appropriate level • Iluvrvnilirl 1'J°,4 coNnut N t tAl. ` 12- PIIII I''amus Consulting V t J3•~ ~ i,.art, ~p< ~~i~ ~i ir.~f =Y ~Y(e fy'tl~s ~tffrl>i~rr'~~~ltir° ~ i~(~~ • n • • r' I 3ak r IVI KEY • WEAKNESSES, STRATEGIC OPPORTUNITIES I 1 STRATEGIC THREATS 1 N x u ~uYw A S i u n r r3'i f f / i~ yE r ,r; , I1 s! r r!i r F 1 V 3 1 91" • y'~ e r 11 1 d z Q 7 0 ~K 1 ~'r : 33 "IN r V W a~ • Key Strengths Ket Weaknesses Strategic Opportunities and Strategic Threats LILY S N Ilecause of its geographic loCallntl at the northern lip of the Metroplex, Denton should have the luxury ol'determining how it develops, as opposed to being overcome by the suburban growth ultimately heading northward from Dallas. Denton offers an attraclivc university environment I with the attributes of a small town and access to all of the resources of a major metropolitan area I Allor M A worklitrce (hut is reliable and possesses a strong work ethic r A high percenulge ofemployment in the public sector providing relative stability in the economy ■ Ollice labor costs that are relatively low compared to the national average • • '1'hc ability to draw from a 5-6 county area, a metropolitan area of 4 million people, and both a rural and mrbltn wolklbrcc • No sigoilicamt lahm-ntanagemettt issues w I i+rl I In r1i..l Y11W I +''I Pr 1,01,41, lilt 'Al Al 34111111111 h'anIIIS Comslihing - ....w.o.,.a. • • , • s, • • , VfJ. +M~.uifN+t 1".5.4..~yy, f I M Key Strengths, Key Weaknesses, Strata is O ortunities, and Strata to Threats IfEY STSEN_G~ fC-~~IT"p) lnfrastructnre and 1 ocation • A geographic position likely to reap the benefits or increased NAFTA-related trade ■ A transporuuion inf}aslructure that is a major competitive advantage--good F!;hway access, proximity to UFW and Alliance Airports, Denton Municipal Airport, and a central US location ■ Competilive rates ror power, water, waste water, solid waste, a well•nnn utility system with the capacity to absorb growth, and an existing fiber optic network • A position in a hotbed of'white•collar office location activity Qtlalily orl,ife • is A relatively low cost orliving, and a solid public education system ■ The presence oI'[wo major universilics and Ilse trainin > b, cuhural, and recreational resources They oRer I Inlay ~ , • ■ An ongoing collaborative cllbrt to re-define Denton's economic development program that signifies the • community's awareness ollhc need lbr enhancement _ Q • I'rceporl c.ecnprtion and pcrceplion ol" texas as a low-tax state ~l November 1954 I CONFIDENDAL ;5- Pili! Fontus Consulting • • • I Key Slrenghs, Key Waaknessas, SUelegic Opportunities, and Stretepic'fhreats _ i Ii MY WFAWIM I, rnr ■ Costs ofmanuf-acluring labor are high enough to put Denton in jeopardy ofnot making some screening cuts in ! corporate location searches Ir fr s rgclure ■ General shortage of available buildings ■ llnavailabilily of prices I'or major parcels of land, a significant percentage of which are not fully-served by ulililics Lack of high-end housing for relocating executives ■ Narrow tax bake as iesuh of heavy presence of not-for-profit sector and substantial residential orientation 0 a Limited roads near Municipal Airport l Location ■ Owside most active national search area for manufacturing locations • itu do ar is I u i dun huvrmUur I'1'l4 t ~ CUNfIUEN11Al. -36- PillI Fontus Consulting • • • ~ry Key Slren Ihs, Key Weaknesses Strategic Opportunities, and Strategic Threats... w+c ■ WEAMMM(,) m ■ Gconomic development effort is not well-suited to meeting expectations of some segments of the 7 business comnumity ■ back of ell'eetive communications between city government and certain elements of the business community result in mislmderstandings, growth of perception of Denton as "anti-business", and missed development opportunities s Perception that Denton is too far from Dallas to be other than a "niche" location for some new business and the development of residential housing Olullity of Life • is Limited high quality nmenities, such as restaurants and hotels i, rlnvenibcr 1994 CONFIDENTIAL 37- PI III Fantus C ons-dting • • r • a~ • • EKe.81rengths, Key Weaknesses, Strategic O odunities, and Strat IC Threats. STRAYEGIC_ THREATS ■ failure to decide whether the relalionship with the Dallas MSA is a positive or negative factor for economic development, and taking appropriate action this does not require a one-time, black/white decision but establishment ol'a process that ensures the economic development effort is in sync with cumnnmity sentiment ■ Continu;1l creep 01'11]e Mclroplex north, which may ultimately determine how Denton develops unless the conanunity is proactive in defining and controlling its growth while there is prohably a five to ten year cushion before the Mclroplex "arrives", concrete action to position the City is required now belore an unde:;iiable chain ofevems is triggered ■ Available inlill between Denton and Dallas may restricl the City's near-term, high growth potential kno%wledgeable development professionals suggest that Denton may not be in their plans, even if inliastruclnrc unprovemcnisoccllr immediately, firr another 10 years • ■ An economic development effort that is rclativei; underfunded, limited in scope and, pending some consensus, not calibraled to meet the con, un nily's objectives the level of effort required will be s° dicnalcd icy the nature of the results souglit ,r r u ■ Coutinucd niiscomnntnicatiun between c ty officials and certain segments of the business community could sidle c'.evelopu,cm and perpewate, Oic view that the community is unfriendly to business public Wcior and business leader"s share many of the same concerns but Itave different approaches for dealing C% uilh Ihcm r.r _ _ _ ~l CONf16ENilnl. 3R PillI Fanius Consulting rnr ♦ ♦ r ~-Y~wra.~liiil[Y~: NiP 0 A ! • a 4 Key St,e_nglhs, Key Weaknesses, Strategic Opportunities, and Strategic Threats... 9 STRATEGIC TNREATS (0111M ■ Overemphasis on obtaining manufacturing investment at expense of other kinds of businesses because ofthe City's location and average wage figures, the main thntst of business investment pursuit should likely be in other sectors i J~ I • J, CJ J rkwo.ln,a IWO CONHOENIIP.L fi`t' 1`1411 Fentus Consulting • 0 DENT ON oooooaaQaooooo oo°~ 4 °0" 00 ~ o0 o~ oD p G d 0 p D cz] C:D fl ~ DOS ~ ~ OHO 1 O r ~ Do UOpO ~ao~a a aoo° • CITY COUNCIL J A0wo -O A4ertdalte Date_ 422 ciLz2f.- CITY Of DENTON, TEXAS MUMJCIPAL BUILDING # 215 E. MCKINNEY • DENTON, TEXAS 76201 (817) 566.8200 • DFW METRO 434.2529 MEMORANDUM DATE: February 22, 1995 TO: Mayor and Members of the City Council FROM: Betty McKean, Executive Director Municipal Services/F,conomic Development SUBJECT: Economic Development Strategy Work Plan i i Attached is a copy of the work plan developed by the Chamber of Commerce and City economic development staff. This draft work plan outlines the possible roles our 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 request, Be y Me ea ;xecutive Director Municipal S v cees/Economic Development • t . .r "Dedicated to Quality Service" t t r-., ,~p~1'ht p,~ t,~r 43st i ,j1;', a..f:!llai,6i7SAp'• j,~. i , tt1 t~ • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS 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 Hoard (EDAB) is unnecessarily large, and communication between staff and board has r.-it been esnecialty strong. RECOMMENDATION #I: 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. J ECONOMIC DEVELOPMENT STRUCTURE Economic City Chamber Recommendation H1 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 to determine the appropriate size of appoint to the Economic Development Corporation / the new Board and to appoint new EDAB (1: Dc). members, b. Build an ongoing strategic planning process within XX The new EDAB will develop a new the E 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 & o campaign. t • N XX = Leadership role Warticlpation February I, 1995 1 6 p • • • ,t PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS ECONOMIC DEVELOPMENT STRUCTURE. RECOMMENDATION q2: PI III Fanius 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 DEVFLOPMENT STRUCTURE Economic City Chamber Recommendation #2 Development of of Action Items Corporation Denton Commerce Comments a. Lay groundwork for adoption of the economic i / City Council must determine whether to ~ development sales tax. fund the economic development effort with anew 1/20 sales tax or by other Determine whether to fund program with / XX methods, If an election is called, the 1120 sales tax Chamber would then take a leadership / role in marketing the campaign. City Voter marketing campaign XX support would be critical. b. Incising the sales tax is not considered feasible, an XX X City Council most 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. 1l(. t9 ll S In thinking about the structure, attention must also be paid to the necessary budget for E.W. Surveys indicate a community of Demon's size should have ~ economic development expenditures of / pQ • approximately $200,000). XX = Leadership role X=Participation r February I, 1995 2 • rrr • PHH FANTUS COMPETITIVE ANALYSIS 1 RECOMMENDATIONS EDUCATIONAL ASSETS The presence of two major universities, the North Texas Research Instittde (NTRI), and North Central Texas College, is a unique attribute of Denton's that can be used io create economic development opportunities, serve as a lure to potential industrial prospects, and help solidify the City's brand image. { 1 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. F,DUCATIONAL ASSETS Economic City Chamber Recommendation 43 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/Business/University 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 representative from a higher establishing EDC• education institution. Each organization would determine its own representative. m b. The existing Town/Cown Consortium program XX X The EDC will assume coordinati6n a tid should be publicized more and perhaps expanded. facilitation of this group. The Et ' aV►n". A convened panel of EDC and university look at expanding the activities o representatives should define an approach with Consortium and promote its activ ~e schedules, committees, etc. LIS ® c. Highlight the universities and their strengths, XX X The EDC will highlight The unive • G[rough events like a national music festival at and associated benefits in its mar UNT, program. The Chamber will aggre promote and support university ac es. XX = Leadership role Warticips lion February I, 19953 • tD • a~ • x PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS F;DUCA'1'IONAL ASSETS Economic City Chamber Recommendation N3 Development of of Action Items Corporation Denton Commerce Comments F%vith e ajoim economic d evelopment effort with XX X The EDC would identify and coordinate rnore of the institutions, the implementation of appropriate joint U could serve as a linchpin for such an effort efforts UNT, given its stated mission afenhancing Universit s. interactions with the business community. c. Convene a forum for discussion between university XX X X The EDC would coorli ate a task force officials, public officials, and business leaders to consisting of representatives from the identify one or two potential growth sectors that 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'I's excellent accounting program to lure back- offices of major accounting firms. Consideration could he given to establishment of a university-related research park. • f. Create a joint task force to pursue any such targeted XX X X The EDC would chair the "growth grow7h 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 - Establishing a center at the university that could • serve as the focal point for development of the • sector and attraction of expertsJlabor. + Consideration of the TI facility or other available land as a possible center for this effort. XX = Leadership role X=Participation dd-- February I, 1995 4 O 0 • ca • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS EDUCATIONAI. ASSETS 1 Economic City Chamber Recommendation #3 Development of of Action Items Corporation Denton Commerce Comments g. Design a public relations program that x XX The universities would become a major f simultaneously enhances the universities' respective images and Denton's brand image, component of the public relations and marketing programs to be Bevel-p~J. u0ce Include major references to the univr hies in XX the "cluster analysis" is completed, new economic development materiors created by the E/1) Corp, especially regarding the top- class programs such as UNI"s accounting and TWU's nursing and physical/occupational therapy programs. Leverage UNT's intercollegiate sports XX X participation in the NCAA through an infomercial that could be produced and shown during NCAA broadcasts and target advertising in communities in which UNT teams will perform, etc, • Jointly sponsor events such as conferences or XX symposia, intended to bring decision-makers x from targeted sectors into Denton. I ' V F XX = Leadership role X=Participation v}~ February I, 1995 5 1 p • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS RECOMMENDATION 004; Ensure that Denton'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 #4 Development of of Action Items Corporation Denton Commerce Comments a. Denton should work with the institutions of 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 would include representation from UNT, business for the foreseeable future, and structure TWU, NCTC, and DISD. new programs that will produce future workers for those skills. f b, Make arrangements with these institutions to XX UNT, TWU, and NCTC already provide develop customized training packages for newly. customized training. The EDC would arrived businesses and existing employers. work closely with these institutions to put • in place those training programs that have been identified c. Given foreseeable cutbacks in government funding XX The task force would include puiC`,' s and programs, Denton may want to target the sector workers when identifying end: ; workforce employed in the public sector to ensure developing training programs. u • their continuing employability, ~ r XX = Leadersbip role X=Participation C1► t Fe!,ruary I, 1995 6 0 b 1 • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS EDUCATIONAL ASSETS Economic City Chamber Recommendation #4 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 meet with area employers, although potential clearly with the DISD to identify 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 workii:g 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 urisdiclions. I b t M 2-1 1 XX = Leadership role X=Participation > February t, 1995 t U • t • S PHII FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS f REGULATORY PROCESS Any community of Denton's sire will suffer fiom sonic 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. Based 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 fair 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 affected. RECOMMENDATION 95: Establish an effective mechanism for continuing dialogue between city officials and business leaders regarding the regulatory process. REGULA'T'ORY PROCESS ~'conomic city Chamber Recommendation 115 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 least once per month to ensure immediate response to • "hot button" issues. b. Municipal officials must be more effective in XX City Manager and Executive Director of publicizing sonic of the refonns that have occurred Planning will meet to discuss possible and that will occur. Examples: Ongoing efforts to customer service training opportunities establish a stronger customer service orientation and look at initiating creative and have already been initiated and the platting process j j development procedures B has been streamlined. f • XX = Leadership role X=Participatlon February 1, 1995 8 • O • ca • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS REGULATORY PROCESS Economic city Chamber Recommendation #5 Development of of Action Items Corporation Denton Commerce Comments c. Ensure [hat 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 identify 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 dcpartmen;a with which it has been difficult for some businesspersons to work. This will help keep Denton competitive with other TexFs communities. • City Manager should appoint a temporary XX The City Manager will appoint a orbudsman who will help business prospects temporary ombudsman. I obtain necessary permits and approvals. Position would be replaced when FID XX The new EDC ombudsman will promote Corporation :stablished. open dialogue with City staff to achieve the ombudsman goals. XX = !.eadershlp role X=Participation •l February I, 1995jl cs► • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS REGULATORY PROCESS Economic City Chamber Recommendation N5 Development of of Action Items Corporation Denton Commerce Comments e. Initiate discussion between City Manager and XX The City Manager and Executive Director Planning/Zoning 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 er :ure indoctrination Among those goals will be customer of the customer orientation in all city regulatory service training for staff. agency staff. • 1 ,t 7~~ u ~ ~ cr • c~ t~l XX = Leadership role X-Partielpation f February I, 1995 iQ • • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS s f BUSINESS RETENTION Greater emphasis should be placed on meeting the needs of existing businesses and creating conditions conducive to their expansion. RECOMMENDA'T'ION #6: 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. i , BUSINESS RETENTION Economic City Chamber Recommendation #6 Development of of Action Items Corporation Denton Commerce Comments h a. The FIX should assign "account managers" ( one XX The Account Manager would be a staff I or two individuals should be adequate) for [lie sole position in the new F,DC, focusing his/her purpose of meeting with the management of time on business retention and expansion. existing businesses to understand their needs and The Account Manager would become the concerns. The account managers must; "local expert" on existing business needs Be able to identify potential problems before and would work closely with City and j they become real or magnified, university officials to promote cooperation with Denton businesses. - Lobby to build cooperation and customer focus 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 After establishing the Accopttt Matj`gger [ continuously adapted and improved to ensure that program, the EDC will cont#nutilly rfview each resource is designed to most fully support the resources to improve the pr rain's 0iIity e account management effort. to meet business needs. N ~ XX = Leadership role X=Participation February I, 1995 ll • 0 • c~ • • PHIi FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS "CLUSTER" ANALYSIS Position Denton in a way that is most meaningful to the businesses likely to consider locating i,o the city. RECOMMENDATION #7: 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 #7 Development or of Action Items Corporation Denton Commerce Comments a. Perform thorough analysis of manufacturing XX An outside firm such as Fantus, UNT"s activity in Dallas, 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 XX A public relations firm may be enlisted to development program has segmental the market develop a media campaign once cluster and determined the kinds of businesses that should analysis has been completed. be recruited. • j c. Target white-collar businesses for relocation to XX White-collar businesses will be inrlgd d ! Denton. in target market. • i W ~ 1 XX = Leadership rule X=Participation February I, 1995 12 • t) • _ m • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS INDUSTRIAL SITES/INFRASTRUCTURE Denton must have developed sites available to meet the needs of businesses. 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. 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 comerstom, 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 #8: Enhance the Denton product by, among other things, improving infrastructure (especially available sites and buildings) that will assist with the attraction of new business. INDUSTRIAL. SITES Economic City Chamber ~ Recommendation #8 Development of of J Action Items _ Corporation Denton Commerce Comments a. Conceptualize a business park, perhaps based on x XX X City would initiate site selection and the STARTEC vision, and identify an appropriate infrastructure improvements discussions, financing mechanism. as well as possible funding. b. Develop s}>ec distribution center either as a stand- X XX X Discussions regarding a distribution one facility or as part of a business park, center will be included in initial discussions. t XX = leadership role X=Participation February I, 1995 13 • 0 • a> • • PHH EANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS INDUSTRIAL SITES Economic City Chamber Recommendation k8 Development of of Action Items Corporation Denton Commerce Comments c. obtain market prices for the available parcels of 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 Deatonians, 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 social/business events that could be F DC staff would invite property owners sponsored by the Chamber and City to which to major social/business events. the landowners could be invited. I 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 include the TI • building in appropriate marketing ee ' campaigns, , YlT. f✓' 1 ~ • XX = Leadership role X-Participation V February 1, 1995 14 • • t 1 ~ 11~11~ ~1 h1 ty 1;,4fp , -0 fS; 1 I, to i PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS RECOMMENDATION #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. INFRASTRUCTURE Economic City Chamber Recommendation #9 Development of of Action Items Corporation Denton Commerce Comments a. A new effort should be made with the'i'exas X XX X The Deputy City Manager and Ilighway 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. 'Ib alleviate road congestion that may occur from X XX City will develop inventory of streets establishment of new businesses or expansion of needing improvement along the 1-35E existing ones along the 1-35E 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 Tcasley Lane. • c. To support financing for infrastructure X X XX The Chamber will begin discussions with improvements, Denton should actively consider a the various not-for-profit organizati ns.,, plan ilia( would require the City's large not-for- Legislative changes may be requlfe profit entities to make payments in lieu of taxes specifically dedicated to economic development. 0 d. Strong consideration should be given to the X XX X 'File City will lead discussions f O recommendations of the Visioning Transportation research alternate transportation City, such as development of alternate i,e., mass transit. y transportation modes. XX = Leadership role X= Participation February 1, 1995 15 • as • • 3 A. PI1H FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS AIR QUALITY j RECOMMENDATION #10: d Because Denton is part 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 1110 Development of of Action Items Corporation Denton Commerce Comments a. 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 Denton Clean make Denton 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. b. Expanded mass transit offerings can be considered. XX X The City will lead discussions and further The STARTEC vision included construction of a research alternate trtuisportation modes, monorail and, whether or not the business park i.e., mass transit. f • becomes a reality, such a transportation asset could (I be developed--for example as a substitute for more access roads to the Municipal Airport. , • XX = Leadership role X=Participation Februai), I, 1995 16 • 0 • c~ • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS METROPLEX RELATIONSHIP Efforts to lure businesses from Dallas to Denton are not in the long•temi best interests of the City. The fact is that the decline of the major city in any region j usually precedes a difficult-lo-reverse loss of attractiveness of the region as a whole; Detroit is a classic study of this phenomenon. RECOMMENDATION 411: 7 Increase Denton's visibility within the Metroplex and cement ties with the Dallas Chamber of Commerce. METROPLEX RELA'r1ONSHIP Economic City Chamber Recommendation 411 Development of of Action Items Corporation Denton Commerce Comments a. Advise the Dallas Chamber when Dalias area XX X EDC will develop cooperative businesses contact Denton regarding relocation. relationship with Dallas Chamber and apprise them, whenever possible, of potential relocations. b. Work with Dallas Chamber to identify businesses XX F.DC will meet with the Dallas Chamber planning to leave Dallas that might he persuaded to on an ongoing basis to determine remain in the Metroplex by moving to Denton. potential Denton relocations. C. Become involved in Dallas and national real estate XX EDC would expand on current orgauizaliuns involved in commercial leasing. involvement with Dallas area real estate organizations. d. Encourage local public officlalslcitizens/business XX X X EDC will enlist individuals.frOV all leaders to actively seek appointment to appropriate sectors and encourage mbttiopl'OJL policy-making or representative bodies in the involvement, i.e. North J*cxas Dallas/Fort Worth area. Commission and cham mbltt ® - ships. +w oi- ~ V XX = Leadership role X=Participation February 1, 1995 17 • O • • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS 1 METROPLEX RELATIONSHIP Economic City Chamber Recommendation N11 Development of of ; Action Items Corporation Denton Commerce Comments e. Make effective presentations, in-person and XX X X EDC will coordinate a speakers' forum through written materials, to the Dallas Chamb.r Involving the EDC board and staff, as that highlight Denton's brand image and disting,iish well as other interested community the City from other Metroplex communities. members. j • L , • rl G XX = Leadership role X=Participation February 1, 1995 18 o. 11 'Vp c, 0 • p • • PHH F'ANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS BRAND MANAGEMENT Brand management is the process of refining product features to meet:narket 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 he included in an initial search than a competitor location with a positive image. RECOMMENDATION #12: Establish a brand image for Denton, at least within Texas, as being a stand-alone unii ersity community with a hometown atmosphere that is close enough to Dallas to offer businesses the critical advantages inherent in being in the Metroplex Region, 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 example, as university resources. BRAND MANAGEMENT Economic City Chamber Recommendation #12 Development of of Action Items Corporation Denton Commerce Comments • a. To compete successfully, against other cities inside XX X X The EDC would coordinate meeting with and outside of "texas, Denton must define, among community leaders (possibly Nision other things: members) to clearly define w~►9t )~etttbn's What it wants to be image or brand should be. kdn Who its primary customers are What will motivate these customers Meetings would focus on spositive image-enhancing • by several of the Visioning such as the environmental establishment of a River Tproject., eta ,o XX = Leadership role X=Participation a February 1, 1995 19 • a • PHH FANTUS COMPETITIVE ANALYSIS RECOMMENDATIONS BRAND MANAGEMENT Economic City Chamber Recommendation #12 Development of of Action Items Corporation Denton Commerce Comments h. Begin developing a revised incentives package that XX X DISD Too City Economic Development Office E is consistent with the "brand" image of the City and and Finance Department would develop be meaningfdl to the kinds of businesses Denton X DENTON and propose new incentive programs and decides to target. It will be critical to include COUN'CY amendments to exi~t,ug incentive policies trainhi and one or two items B programs perhaps 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. i c. Begin positioning Denton to benefit from NAFTA XX EDC would contract with PR firm to related trade through a selective advertising develop marketing cam i' 8 P~6rt targeting campaign. NAFTA-related industry in Mexico and Canada. h~ E • , N_ { t XX = Leadership role X-Participation February I, 1995 20 • • !4 ' t 1 < t 1'~ lsi i ~U . • • A VISION FOR DENTON • THE 21ST CENTURY IV. Other Action Steps • Denton has and is actively promoting the two Universities as sources of 2.88 educational, cultural, research and business opportunities. • Denton is home to businesses and Industries that hays strong, promising 2.82 futures, • Accessible job opportunities 2.59 • Denton has a business and Industrial base that provides employment for 2.69 every citizen in Denton. • Denton has had a Partnership In a world class Research and Technology 2.59 Center established with Universities since 1997. • Industrial Research and Education Center 2.63 • The portion of the tax base represented by Industry and business has 2.41 exceeded 50% since 2006. • Enhanced educational opportunities 2.41 • Medical facilities and health care 2.38 • Economic Development Corporation head4uarters with conference 2,31 center/guest suites • Getaway to Texas from North and rest of U.S. from South 2.29 • Tech training center 2,29 • Interactive 2.26 • Better and more signsgs 2,24 • Denton has a per capita income above the national average, 2,20 • Denton exempt from congestion mobility 2,13 • Trolley system between UNT, TWU end downtown 1.94 • Music as a business 1,94 • A conference center 1,84 • New retail 1.94 • • Trolley service 1.88 j • Expanded mass transit bus to Dallas/Ft. Worth 1,82 • A convention center 1,80 i • Commuter train to Dallas 1.69 • • Downtown Heliport 1.00 • • MAO]F38 . 3 . ♦ to A VISION FOR DENTON • THE 21ST CENTURY,,,; LEARN: To develop DeMon as a communlty that promotes exceNence 4t ` CI !7 leaning by providing educational and training opportunities for all cmzons. 2 3 08 Z 1. DISD recognized as an excellent school system seta • DISO recognized as an excellent school system 2.88 • Graduates from school system are sought after by business, Industry, or 2.71 higher education institutions • Safe schools /positive learning environment 2.68 • Programs for young children (culturally deprived and crime ridden) 2.65 • Well-balanced, rich curriculum offered at all levels 2.63 I • Teaching faculty Is excellent and Is so recognized 2,56 I • Programs for high school and beyond 2.53 • Full range of quality educational opportunities 2.50 • Diversity within school system 2.25 • Invest In plants and equipment 2.18 • Instructional leadership of faculty 2.13 Tentative Concept Plan Development: Refer to the action team to develop and Implement a strategy board to ensure that programs and opportunities are continually developed that enhance the DISD's reputation as an excellent school system. II. Promote and Involve universities • Promote and Involve universities 2.75 e Build on university offerings 2.58 • Internationally recognized Institutions of higher education 2.38 i Tentative Concept Plan Development: Develop a consortium of educational consultants, local educators, communications consultants, and representatives of the Board of Regents of both TWU and LINT to explore and recommend strategies to promote and involve universities. Form an action team to develop and implement a strategy board. III. Other Action Steps ♦ f e Bring together education institutions and business community to 2.76 maximize resources e Technical training 2.50 MAOtF3e • 4 ♦ f~ • _ &J s A VISION FOR DENTON - THE 21ST CENTURY • Investing In learning in Denton 2.44 • Information city 2.31 • Enhanced educational opportunities 2.25 • Legislative leadership by DISD, TWU, LINT 2.12 • Continuing education In retirement (enrichment lnl LINT, TWU, DISD 1.94 LIVE; To develop Denton as a safe, attractive comet mity with strong neighborhoods, a unique Identity, quality s casaWk health care, end a sense of historical pride. 1. Strong neighborhoods • Infrastructure 2.88 • Accessible quality health care 2.86 • freedom from crime and violence 2.83 • Efficient public and social service 2.69 • Persons work here as well as live here 2.53 • Strong neighborhoods 2.53 • A city for children 2.35 a More diversified housing 2,08 • Improved low Income housing 2.00 • Diversity of housing options with outstanding fitness/renreational 1.86 amenities • Additional sidewalks 1.40 • Pocket parka 1.29 • Pocket gardens 1.12 Tentative Concept Plan Development; • Develop a focus group of planning consultants, neighborhood and community leaders, and police personnel to recommend strategies for creating strong neighborhoods. Refer to the action team for development and Implementation of a strategy board, i • fl. Well-defined entranceways . • Defined Entranceways 2.47 • Entrancewsys to City 2,41 AAA42F38 • 6 • A VISION FOR DENTON • THE 21ST CENTURY • Entranceways to Universities • Landscaped Entrance Ways Tentative Concept Plan Development: Develop • focus group to recommend 3 or 4 potential sites for entranceway gs j enhancements. Form charette of transportation and planning consultants with a landscape architect to develop sketches and drawings to graphically demonstrate how the enhancements would appear. Refer to the action team for development and Implementation of a strategy board, Ill. Other Action Steps • Adequate transportation 2.29 • Educational and Community Relationships 2.26 • Per capita income above average 2.24 I • Independent United Way campaign 2,18 • j High amenity city 2.18 • Cultural offerings and opportunities 2,08 • Better markoono of cultural opportunities 2,Oi1 • Builds on history of City 1.94 • Linking of TWU, LINT, and downtown 1.88 • Better Communication Between Art Groups 1.82 • Public art program 1.82 • Public art 1.78 • Build on O'Neil Ford Legacy 1.71 • Besutfful park like setting linked by monoralilhlke/bike trail and public art 1,86 • Greenbelt buffer around City 1.69 • People moved back to downtown in renovated historic homes 1,60 • River trail 1.47 • Bike paths 1,47 • A new library in North Denton • combined library communication links 1,44 • Red Bud Troll 1.31 i • City for retirees 1.31 • Ewer hostel 1.24 i • • Farmers morkat • • i 1.24 AAA02Fas .e, A VISION FOR DENTON - THE 21ST CENTURY PLAY: To develop Denton as a center of diverse and accessible cultural and C` recreationM opportunities. ? b 7 ) I. Performing arts centerlmustc hall at UNT ~b • Musk Hall at UNT 2,36 • Performing art center 2.29 e Division 1A in musk 1.76 Tentative Concept Plan Development; Develop a charette with representation from the UNT Board of Regents, architects, and performing arts and financial consultants to develop plans for a performing arts center/musk hall complex. Refer to the action team for development and Impiementatk>n of a strategy board. 11. Arts and entertainment corridor • Arta/entertainment corridor 2,24 • Arts district 2.24 • East end improvements 2,12 • Musk as part of east and development 1.94 !I Tentative Concept Plan Development: Develop a focus group of architects, developers, and planning consultants to make recommendations about development of an arts corrklor. Crate a charette to review the recommendations and prepare graphics and computer enhanced Images of the proposed corridor. Refer to the action tam for development and implementation of a strategy board and marketing plan, III. Other Action Steps • Community projects (publWprlvate partnership) 2,19 • Quality Parka &W Recreation Department 2.18 . • Festivals 246 • Affordable opportunities 2.00 • Facilities 1.93 e Sports 1,79 • e City wide hike and bike trails 1,71 • Economic development opportunities (softball) 11119 • A museum 1.69 AAA02FSS . 7 . r v DENTON ~~Z3 o00 00 00 oo°Av o © o 0 q r Qp? f 4e V~O ~ N ~ ~ DO°° °QOa~oaaoo° v CITY COUNCIL a~ • ca • AgendaNo. - ~ I te Date ate.~I~.~ CITY of DENTON, TEXAS MUNICIPAL BUILDING DENTON, TEXAS 76201 0 TELEPHONE(817) 566.8307 Office of the City Manager CITY COUNCIL FORMAT TO: Mayor and Members of the City Council FROM: Lloyd V. Harrell, City Manager DATE: February 24, 1995 SUBJECT: Vision Project Update The Vision Project cabinet has concluded their assessment of the suggested initiatives proposed by the Impact Groups last October at Ryan High School. Consequently, the following represents the general themes and prioritized initiatives of the project. As you may recall, the original themes of the vision project were business, cultural, education, functional (beautification, community, and entrepreneurial) , hospitable, and transportation. These have now been condensed to four: work, learn, live, and play. The themes have been realigned as follows: work includes the former business, transportation, and functional (entrepreneurial); learn includes education; live includes functional (beautification and community); and, play includes cultural and hospitable (See Attachment 1). Attachment 2 represents the overall mission statement and the nine priority action steps selected for immediate implementation. In their deliberations, the Cabinet felt it necessary to try and determine some priority action steps based on the four themes. Please note that under each major theme are the appropriate initiatives, results of the Cabinet rankings, and a tentative concept plan development scheme.. • The Cabinet has determined that the former impact groups will be reorganized as four separate "action teams" in accordance with the four major themes. The Cabinet feels that it is important to be champions for the successful development of concept plans for the four themes and nine major initiatives. Accordingly, the chairpersons for each of these theme areas are as follows: Derrell • Bulls, Work; Bettye Myers, Learn; Euline Brock, Live; and, Fred • • Patterson, Play. Attachment 3 reflects the reconfigured action teams, the remaining Cabinet members who have elected to serve in the four areas, and the appropriate staff liaisons. As before, I have asked our Staff "DcrRcnhrd to Quufhv Semicr" 0 0 • ~andaNo....r to serve as point persons for each of the ai de -fib ' O!'~ Ray Z'9 L3 Braswell will serve as the staff liaison to the Learn action team. Finally, I have added for your review the revised vision time line. Please note the changes beginning with Phase VII which brings the action teams together to prepare and review concept plans. The target dates remain essentially unchanged so that we are hopeful of a September final report and the assignment of responsibilities for implementint; the plans in October. Please advise if I can provide additional information. RESPECTFULLY SUBMITTED, A ;arrell City Manager Prepared by: Jose Portugal Assistant to the City Manager Attachments: 1. Realignment - Action Teams 2. Vision Statement - Themes and Initiatives 3. Project Cabinet - Action Teams 4. Vision Time Line i J • • - ~ ci~~ ~yt i~d~s~3ti ~ SV r v , iZ _.~i Mr k ug'k,`Si7 4)6 j ~ t ~ y t~c^c?^P~o ~ _ A VISION FOR DENTON - THE 21ST CE PROJECT CABINET REALIGNMENT - ACTION TEAM WORK - BUSINESS, TRANSPORTATION, FUNCTIONAL (ENTREPRENEURIAL) LEARN - EDUCATION LIVE - FUNCTIONAL (COMMUNITY, BEAUTIFICATION) PLAY - CULTURAL, HOSPITABLE • I~ I AAAC2VUn raw-sAIIIWa[iS.'.19TW y • ca • A VISION FOR DENTON 311E_= VISION S"rA' +.MF Nm Ia the gist century, we envision Luton as the North star of Ormms a oomunity of e:oelleaoo for livinq, working, learning and playing. I i I • ' • O AMO?P% • 71Y S. ~ p d'.. jlw i~''.t snl lrt~(Y ,4v"/4.+ ZY~~i~~n l3'.. • A VISION FOR DENTON • THE 21ST CEN7URY„,1 WORK; To develop Denton as a leading entrepreneurial City that attracts 1144- I3 high-sklN, high-paying jobs. S08 1. Business and Industrial park • Denton actively searches for and recruits high Income industries and 1.84 business for location and relocation In Denton. • Public/Private Partnership 2.76 • A variety of buslnessAndustriol sites with parklike setting 2,76 • Denton has established a major public/private development corporation, 2.88 and created a first-class Industrial Park(s) In 1986. • Startsc 2.65 • Joint venture 2.21 Tentative Concept Plan DevRlopme,t Conduct site development survey to determine 3 or 4 potential sites for a bualnessAndustrlal park. Contact the National Association of Office and Industrial Parks INAOIPI and ask them to serve as a charatte to ansiyzo the sites and recommend marketing and financing strategk+a, Use a second charetts comprised of the NAOIP, a representative from the Texas Department of Commerce, and the vision consultant to prepare graphics and computer imagln"ring. Send to the action team to develop a strategy board and pursue Implementation. R II. Review and rev!" development policies e Denton has user-friendly supportive infrastructure, zoning and 2,88 i developmental policies, • Denton Is a city with streamlined developmental zoning and regulatory 2,82 process ma:Inu development In Denton one of the most efficient in the Nation, • Denton's economic development, public policies and regulatory activities 2.82 are focused on helping business and industry to locate In Denton in order to create high quality Jobs for the growing Denton area, • e Denton city government has policies and attitudes that work for and 2.76 cooperate with Its citizens, businesses and industries. • Denton has tax, utility and other Incentives for new and exists g 2,68 business and Industries. • Targeted Incentive packages 2.63 • Denton citizens are proactive In Political end Governmental Regulatory 2.24 • • Issues that directly affect the community. AAAO2F3e 1 • ca • A VISION FOR DENTON - THE 21ST CENTURY r • f enton has crestod machanlsms for investmenp 2.13 bonds and IRA's , o citizens can flnanclsily partkipate in oo~i projects and facilities - v Tentative Concept Pl to Development: O b pa i 3 Develop a focus group to recommend revised standards of development In the Denton Development Plan, Prepare and document the policies for p & Z and City Council review and approval, III. Provide appropriate Infrastructure • Dentoo has had a strong economic Industrial corridor on 1-35 since the 2.76 ykN&r 2000. • Denton has continued to develop and construct strong long-range 2,71 infrastructure systems supporting good Industrial, commercial and residential development which was completed in the year 1997. a Denton City Government leads growth with roadway and utility 2.65 Infrastructure and Is proactive In the planning and funding process for highways and thoroughfares, e Infrastructure Network 2.59 • "The local access road' to the "global superhighway' 2.56 • Link businesses, educational and government organizations with 2.53 Information wfrestmcture • Improved routes to airports and other activity centers 2.47 • Entrances to downtown Denton 2 41 • Linking the community with a fiber optics telecommmtkatlons network 2.35 • Denton has a strong and dynamic airport with good support facli ties. 2,35 • Denton continues to sustain a competitive, progressive, visionary, Public 2.35 Utility Department • Global connections 2.19 • Denton has maximized the potential of the Alrport with state-of-the-art 2.19 support facilities. • Entrances to other activity centers 2,16 • Lntrances to airport 2.12 Tentative Concept Plan Development: Develop a focus group of Planning end Engineering staff to determine a plan • for providing the appropriate Infrastructure to support economic development. • Submit the plan for review and approval by the Project Cabinet and the City Council and Inclusion In the C.I.P. Appoint a citizens advisory committ" to lead a bond program effort to fund the infrastru.-urs improvements, AAM208 2 . • as, A VISION FOR DENTON -THE 21ST CENTURY`"' • Greenwaye • Place for felr 70$ 13 1.68 • Musk MutNUm 1.63 • Science land 1.47 • Historic tours 1.44 • An emphitAealer 1.38 • Natatorium (indoor swimming pool) 1,38 1 31 • Equestrian center 1.31 • AAA02F38 -e• _.'~.."`--T'om` ...w... • ~ r ~ ~ %b, ~ ly~s a~J~ )lti p41 f?r• ~ ~`~7,'~~ia ~ ' ~~S~~3k r, 4 ru~ a~ 5i s A VISION FOR DENTON - THE 21ST)'' PROJECT CABINET 13 ACTION AM WORK DERRELL BULLS, CHAIRPERSON CARL ANDERSON CHUCK CARPENTER RICHARD HAYES DEAN KAHNEY BILL PATTERSON RUSSELL BATES, EX OFFICIO BOB NELSON, STAFF LIAISON BETTY MCKEAN, STAFF LIAISON KATHY DUBOSE, STAFF LIAISON LEARN BETTYE MYERS, CHAIRPERSON JIM ALEXANDER JEAN SCHAA...' VIRGINIA WHEEL ESS AL THOMAS, EX OFFICIO RAY BRASWELL (DISD), STAFF LIAISON LIVE EULINE BROCK, CHAIRPERSON LLOYD HARRELL PAT GOBBLE, EX OFFICIO • FRANK ROBBINS, STAFF LIAISON PLAY FRED PATTERSON, CHAIRPERSON • JOHN BAINES ' • • JACK MILLER J FRED POLE RICK SVEHLA, STAFF LIAISON JANE JENKINS, STAFF LIAISON • o • ca • February 17, 1995 A Vision for Denton - The 21 st Century s Participants Tiriling Process Products Results Phase I Kick-Off Conference F Reactlons and Information from Kick•Off • and A wfolors nbnted, dw ems ofo • Project Cabinet October 24, ofNana ne rawly to plan their • Staff 1993 ooronwolty,o future. • External Resource Citizens of Denton a Enough pubNcity w that aN • dttnr 1eN fres to partioipata In developing the strateglo plan. Phase 11 A. Select Impact Groups and Their Process and Protect Denwgrep • A visioning process In which No end Leaders and Process Model Worts Program Cabinet Ecortornlo Nssearoh aowNryo understands their • ProJeot Cabinet November Mtarnatiwr and Anel e Chosen trownunity feeders tlss. 168a who will lard brrpest Groups. • Cabinet stakeholders oommlt adequate resources for trainkV • Estewish 6 Impact Groups and support for Mtpsot Groups. • Select CaLaadae for each group • Identify other help needed - Phase 11 B. Form Impact Grou s • Interested Itdi"als algn up Project Cabinet Novambar Citizens sign up for all Impact Groups i be Invoked In apes of Ii • • Project Manager Dec1903 ember a Infomtad of mesang tkn•a, 1993 Phase III A. Prepare Vision Room Orientation and • AdequNO far"ry (of Urtpoot • Project Manager Dnoember Strategic Planning Tachnlquas Groups to moat aryl hr ofkr)' Training of a Place to a Volunteers 1993 •PlW lot W.!bNo' i Key City Stan Co-Leaders on Intamal Assessment External Assessment graphics and of th! • Group Process . ThnNe A Dppodunklee . Conroe""" a•etya 6 Impact Groups, • and Research state" a rMaa Health Carnpertrn to Otlw Mae Phase III h • E■k*q FINN a studies B. Pre are Lenders • EdueetlonalP Project Manager January 13, • Lend use a capebod" • Key Trends opportuNtles • TralrNr/ 1994 • F161b 6yppen • oromth Aorlyde facing Damon.. • Matteis area aer 6 • Urb in form AnMfW • Well oftmad t hnpeof Group Ca Leedere Leading and , t~ etum" , other anrkn faoWtnore to FaC118ating leaders of Iri pact G 1 Skillet atr.nsth w roe (1 OpponunwT eta .1' W • O • • r • February 17, 1996 A Vision for Denton - The 21 st Century Phase IV Impact Grou Davel Vision • Impact Groups Jsnuerv 101114 r a A ciw urdwstwdlro of the • Staff of Spornon I Impact Groups ~ facts, lrande era fora" • Extorm Ra ours" thru hVactlng on Donlon, and - Speakers hop", oxp ctatblN and - As many Ciczarm " Soplambsr resources wNoh miglw offset Pro}so onager 1N4 Focused Research gklw1no thern. Morttftly meetings: Iflla • A A ow worm" vision for each of ; • Milt to Relwsm West Project Marwwr and • Chan"" ttnos I Are tlv" Lecture Swoo Group Leaders • Future Wheels • w he which can Wass b"ora and Htlthetls tiveo Toploa Confsrenoee Idea 0~460M point ~ se~ Expert input 81 -Monthly mnetlrpa: o"•dno a Wdtton rpom from each Eto, Cabinet and Group : a netoamtlng tomcat. Mvecl Group in a oa mwn Surveys to Identify Leader. Citizen Perceptions Interviews to GttttMr a GtaOw'*d bees' of 4*6" who we Infomw NW .cave as and Expectation! Expert Judgment and a oorwatw wy to support Analyas Ow w"W"don. • Mtra ed M66M ooh" OW atrate& opporturtlo". • AofterWhelow mom" bpln. • L~ ~a 0 ' 1 ItA • • • r. M..N.stt /.t M\rrt. n~ f!4 £a~..\\NJ'Ih1~Al? . Ida i February 17, 1995 A Vision for Denton - The 21 st Century Ph*" V Pro ect Cabinet Revlews Visions • Proiect Cabinet WOW 1a04 EACH GROUP MAKES FORMAL • s fomW prooootaeon in4 • ExtorrW Roooumoo PRESENTATION TO THE otflolol r•oopdtion of the • Sponoon • Raoontrnordie1 dirM d Wood . Aano1.. PROJECT CABINET to *W bnpoot Group Loodors AT PUBLIC SESSIONS. down ola° O1°o'p iid prodM more oMAty. Project Cabinet Eliminates Overlap and Consolidates Recoromendatlons, I Phase VI Development of Work Ptans for Concept Plan Development • City Staff November DEVELOP STRATEGY FOR • 14apor•tbn of work plops of • comwtam 1994 PREPARING CONCEIT PLANS stop i ww sours" rooulnd to • Proloot Cobinn swap" Gonow a Fobmary mmaW 1. 1 v" nd by 1995 action towns. • rt iti ?t i S.~ 1 t 1 7 • • v~ v r !s t' v r.. I w~ e • • f f February 17, 1996 A Vision for Denton - The 21 st Century • S01 11 Phase VU Actlon Teams Reform to Prepare and Action Teams Meet to Prepare and 10.ev1aw Concept Plana Review Concept Plans, Update Vision and Oaks Undstatandlrtg and Support for the Entire VWm, Room Erlwnal Rosources Maroh 1996 Action Plans Deveklped, a Concept plane which convoo • DrePMo Staff the Action Town reports Into • Wdlen thnk • Model Makers op"N projects e• and revery • Action Teams June teas Update VWm Room to Servo as Morkat4 Canto can understand and goer behind. • Citizens to Promote and Comrmxtlcate the Vision for Denton • A oammunity-dawloped and • Interested Pardee supported Melon that Is widely, • Pro*1 Cabinet shared and understood by a • 6pomorirp En:INee broad oroa section of SM F1 n aow.e Ftos ow.e Yaw caw oomm"Wty, stskohokare, and laden. • A Plea where one can walk through the Demon of the 21 at century, lnc/uding: rwa acute a Fal F"I - Plane and napa udy to and v1slame • Study Modals of sale 6eNosad Area • Cornputw Ankn•ted knapaa Phase Vill Develop Action Plans TEAM LEADERS PRESENT FINAL REPORTS. • TIMING AND STRATEGY FOR IMPLEMENTATION SELECTED. • Project Cabinet July 1996 • A oommunltyaupported vision • sponsoring Entillso with resources lawasd on the • Action Towns September offer% citizens want and need 1995 Strategy Acton • A plan that puts resources Boards Plane whore thwe Is more opportunity and 4y~ 9s, • W ~ 0 a~ February 17, 1995 A Vision for Denton The 21st Century Phase 1X j Secure commitment and Asslon PROJECT CABINET SECURES COMMITMENT Responsibilltles FROM APPROPRIATE GROUPS. Sponsoring Endues City of n bthe • oisot Cabinet ontobef ties 7Denton. Denton Univer sity Texas aina Ihsir of N. Texas Woman,r a betty University i Denton Denton l Safari Chamber Dlslrlot of Commefoa Denton Record united way Chrowels Others Sponsors begin monthly maetimp to report on Implemantatloru, Melon Room updated showlne actions. Phsu X Monitor end Update Vision r • Sponsors others Re-Vision • An erpolno vi(To BFI Determined) ` a piross" of IS' produet w plan point In WM, qu- 0 . DENTON I I poooooDooQOOo oo°~ ~4° 00 ~ o0 O . o c~ D ~pp~~ 00 Op r a~ 00 OOp ° N p~0 °QOaoaoaoa°o ® CITY COUNCIL i• o • • ;I . p Ail A~F I Cd S MY of DENTON, TEXAS MUNICIPAL B0LDWG * 215 E. McKINNEY o DENTON, TEXAS 76201 (817) 566.8200 @ DPW METRO 434.2529 MEMORANDUM TO: Honorable Mayor and Members of the City Council FROM; Kathy DuBose, Executive Director of Finance'!•C7/ DATE: February 22, 1995 SUBJECT: HOTEL OCCUPANCY COUNCIL SUBCOMMITTEE RECOMMENDATION The City's contract with current recipients of hotel occupancy funds will expire March 31, 1995. As you are aware a City Council sub-committee consisting of Mayor Castleberry, Mayor Pro Tenn Brock, and Council Member Percy was created to study hotel occupancy tax recipients, and make a recommendation to the Council on renewing recipient contracts. For the past sevoral months, the subcommittee has held a series of meetings to interview each of the current recipients on their use of hotel occupancy funds, The sub-committee sought to determine how each recipient complied with their contract, and how hotel occupancy funds were used to promote and encourage tourism. In addition to interviewing current recipients, the sub-committee Interviewed three additional organizations seeking funding. These organizations were the Festival Foundation, the Denton Main Street Association, and the Denton Historical Landmark C:orrmission. As part of the subcommittee's analysis, a survey of fourteen North Texas cities was • conducted to determine if other cities: • give money to county agencies? • have ceps on the length of the contract? • have allocation limits? • The results of the survey were compiled and distributed to the subcommittee for review. - i "nedicaied to Quality Service" - .._---'^--rte- ~ _.~.,.....~i:.•._ ,.w__ _ • c'+ • Memo to Mayor and Council Members Hotel/Motel Subcommittee Recommendation ;J February 24, 1996 7, Page 2 To conclude their analysis, the sub-committee met on February 14, 1995 to hear a presentation from Corgan & Associates regarding proposed improvements to the Civic Center, and to hear a presentation from Susan Croff, Internal Auditor, on the findings of her audit of each recipient. Any detailed information used in the analysis by the subcommittee is available upon request. After detailed analysis on the uses of the hotel occupancy tax, the City Council sub- committee developed several recommendations, There are two ,ttachmentsto hett„ummarize the following recommendations, Attachment A is a hotel occupancy tax summary Indicating recipient budgets, the proposed percentage they would receive of hotel tax revenue, and the proposed funding caps to be placed on ench recipient. Attachment B is a summary of specific changes to the contracts between the City and each recipient. Highlights of the sub- committee's recommendation are listed below. i AI The subcommittee rec.)mmends the fallowing organizations receive hotel occupancy tax funding: Chamber of Commerce-Convention and Tourism Bureau Greater Denton Arts Council North Texas State Fair Association Denton County Historical Museum Denton County Historical Foundation These organizations are the same organizations currently receiving hotel occupancy tax, except Science Land, which did not request any future funding. j BI Create a cap that limits the maximum amount of hotel occupancy tax distributed to each recipient. The cap is calculated by taking a three year average of the actual hotel occupancy funds distributed to the recipients minus approximately one percent. However, the cap for the Benton County Historical Foundation is calculated by taking one-half of the three year average. Each recipient will receive a percentage of hotel occupancy • money, which is based on the percent of each cap to the 1994.95 hotel occupancy budget, or the actual cap itself, whichever is less. The established percentage will remain valid for the duration of the contract. Any hotel tax receipts in excess of the caps will be reserved by the City for future uses that qualify by State law as legitimate uses of hotel occupancy tax. According to State law, the City can use up to seventy- five percent (75%) of hotel occupancy tax receipts to fund Civic Center • improvements. See attachment A to see proposed percentages and caps. al • • Memo to Mayor and Council Members Hotel/Motel Subcommittee Recommendation February 24, 1996 „ Page 3 "D Cl The duration of the contract should be two and one-half years (Aoril 1, 1996 to September 30, 1997). In the period from April 1, 1996 to September 30, 1996, a one-half year period, the cap will be one-half the cap for an entire year. For example, the yearly cap for the North Texas State Fair Association is proposed to be $64,000, and the cap for a six month period is proposed to be $32,000. For each of the two remaining years of the contract the cap will remain at one hundred percent 000%). In addition, the subcommittee proposes changing the contract period to coincide with the City's fiscal year. D) The City should not disburse any funds to a recipient until that recipient has first provided a quarterly report for the period of payment. These are the recommendations of the City Council subcommittee, Please review both attachments A and B for more specific Information. Also attached Is a copy of each proposed contract. Approval of recipient contracts is scheduled for March 21, 1996. If I can provide you with any further information please advise. Thank you. Joel AlWh"nl l Af FOOD?7 • s • • t.. ; , I~ I f • • Attachment A 1 HOTEL OCCUPANCY TAX SUMMARY Recommended .a 1994-95 1994-95 1994-95 0711ree - Pefccnt Actual Percent of Tax Rate Year ••Maldaum of TIII Tax Rate. Budget Tax Revenue Allocation Average Cap Revenue Allocation Chamber of Commerce 295,200 40.71% 2.85% 193,294 192,000 38.10% 2.679% GDAC (operations) 72,000 14.29% 1.00% 67,964 67,300 13.35% DM % North Texas State Fair Association 68,400 13,57% 0.95% 64,564 64,000 12.70% .0.89% Denton County Historical Museum 60,192 11.94% 0.84% 56,6941 56,200 11,15% 0,78% '''Denton County Historical Foundation _ 8,208 _ 1,63% 0.11% 7 731 s;500 040% 0,0596 414,000 82.14% 5.7S% 390 47 . 383r 75;9996 5.329 Civic Center (operations) 64,500 12.80% 0.90% 64,300 12:80% 0.90% Reserve 255C0 5.06% 0.35% ♦b~~ 4*40 • 504,000 100.00% 7.66 7996 • Thret yar average for yon 1991-94. ••The euodmm ap ralcuWed by takingd,e three" a,engerod a apprwwwey one percent The DenimCourgIlWorlwlPowdatimesednmcapwucalcrWedhyutiryappradnttely9"hogoftheth"ywArenge, The im ve b mnprbed of doe aawunl of howl ooeupaoty tax retched dal exeeda rll redp" apa. ' i. C,1121R241TAXMUM3-WK1 M441" h3X39AM i 1 ~ A V 9 • c' • CONTRACT CHANGES Attachment B - Page I TERM OF CONTRACT t ;I The loll of the contract has been reduced 't'his gives the CITY more flexibility in obligating the use of I I Isom 4 1l2 years to 2 1/2 years, the hotel tax funds. (b) a HOTEL TAX FUND PAYMENTS Eliminated reference to "ufsmlh Eliminates possible payment of hotel tax collections to I•V AtltruJ~• recipients on a monthly basis, j 1 P~tyltient serucfibcg changed to a L--5j° fixed amounts were set based on the information presented in 11.2 anja nt or pcrcentnf;e of tax revenue, Attachment A. The percentage is used to adjust for possible (b) and which ever is less. decrease in hotel tax revenues. V 5.1 1 REPORTING Quarterly reports area rcquircnuent prior to 'I'he requirement of the quarterly performance and financial 1 1.3 ILt~t41e°se of hotel tax payments, reports prior to payment ensures that the CITY will receive (b) • the reports in a timely manner. x s j Qtt~tt~rly reuong were defined in more Quarterly reports were specifically defined as a performance 1[ 3.4 j detail. report and a financial report. The reports are to be presented in the format requested by the City Manager. A I)udgets presented to Council are required Eexpcpnditares egation of proposed hotel tax fund expenditures III 3.1 }t • to segregate proposed expenditures of e CITY to review proposed expenditures for hotel tax funds, ce. It also allows quarterly monitoring of the actual t; to the approved budget, • O • a • s Fail Ltre to suhmit a fin racial report which Quarterly reporting is required by Stale legislation. This V 5.2 I complies with the contract is cause for stresses the importance of the submission. Additionally, the (b) {iv) termination of the contract reports allow the CITY to monitor the proper expenditure of hotel tax funds. r USES OF IIOTEL TAX FUNDS ,f The limitations on the ofhotel tax Each recipient's contract will now include all categories 112.1 4 funds by each recipient has been adjusted allowed by the State that are applicable to the recipient's use (a) - (d) to include all State allowed expenditure of funds as proposed in the annual budget. categories as deemed necessary based on the recipient's budget. 4 Hotel tax funds used for admjaLgrative Expenditures of hotel tax funds for administrative costs have 112.2 costs have been limited to comply with the Teen limited by 1993 State Iegi0loon (See 351,101 (f)) to the 1993 Stale legislation. building and maintaining of P. convention center and promotion of tourism, ADDITIONAL REQUIRMENTS AND UPDATES An insurance requirement has been added. This limits the CITY'S general, automobile and worker's IV 4.2 r j • compensation liability. - A non- i clause was added. This ensures that funds used for recipient payments are 1 1.3 ( i i limited to those collected from hole) occupancy taxes. (e) G" A clause r lillliSlugftlSU[4S a tlfiri4111s b) This limits the CITY'. ; commitment of funding to the current 11.3 the CITY of hotel tax funding has bee , contract period. (d) • added. Attachment B - Page 2 • • • AGRE8K8NT BETWEEN THE CITY Or DENTON AND 7Gr s/ THE DENTON CHA Wn OF commCE PROVIDING FOR THE PAYXBNT AND USE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a muni- cipal corporation (the "City"), and the Denton Chamber of Commerce, a non-profit corporation incorporated under the laws of the State of Texas (the "Chamber"): WHEREAS, TEX. TAX CODE S 351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by Ordinance 85-67, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (78); and WHEREAS, TEX. TAX CODE 5351.101 (a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and con- vention delegates or registrants to the munic..pality or its vicinity; and WHEREAS, the CHAMBER is well equipped to perform those activities through its Denton Convention and Visitors Bureau; and WHEREAS, TEX. TAX CODE 5351.101 (c) authorizes the CITY to delegate by contract with the CHAMBER as a private organization the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the CHAMBER agree and contract as follows; • I. HOTEL TAX REVENUE PAYKENT TO CNAKEER , 1.1 Consideration. For and in consideration of the activities to be performed by the CHAMBER under this Agreement, the CITY agrees to pay to the CHAMBER a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the CHAMBER sometimes herein referred to as b "the agreed payments" or "hotel tax funds"). • • 1.2 Amount of Payments to Chamber. a (a) As used in this agreement, the following terms shall have the following specific meanings: • 0 IL p / • (i) The "hotel tax revenue" shall mean the monies col- S I lected and received by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to TEX. TAX CODE 8351.002 and City Ordinance 86-87, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax., but excluding interest and penalties received by the CITY from taxpayers. (ii) The term "base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CTTY during any relevant period of time (i.e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes from taxpayers or auditing taxpayers for tax payment compli- ance, such collection and auditing costs to include fees paid to attorneys or agents not in the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax from taxpayers or audit such taxpayers; and (2) court costs and expenses incurred in litigation against or auditing of such taxpayers. (b) The CITY shall pay to CHAMBER an amount of money equal to thirty eight and one tenth of a percent (38.10%) of the base payment amount for the period of April 11 1995, through September 30, 1995 or Ninety-Six Thousand Dollars ($96,000.00), whichever is less. (c) The CITY shall pay to CHAMBER an amount of money equal to thirty eight and one tenth of a percent (38.10%) of the base payment amount for the period of October 1, 1995, through September 300 1996 or One Hundred Ninety-Two Thousand Dollars ($192,000.00), whichever is less. (d) The CITY shall pay to CHAMBER an amount of money equal to thirty eight and one tenth of a percent (38.10%) of the base • payment amount for the period of October 1, 1996, through September 30, 1997 or One Hundred Ninety-Two Thousand Dollars ($192,000.00), whichever is less. 1.3 Dates of Paymen,hs to Chamber (a) The term "quarterly payments" shall mean payments by the • CITY to the CHAMBER of those amounts specified in 11.2 abovb as ' • determined by the hotel tax revenue collected ay the CITY during any one fiscal quarter during the term of this Agreement. i (b) CITY shall pay the CHAMBER the agreed payments specified in 11.2 above by quarterly paying thirty-eight and one tenth of a percent (38.10%) of the base amount or one-fourth (1/4) of One PAGE 2 r.. Hundred Ninety-two Thousand Dollars ($192,000.00), which ever is less. Each such quarterly payment shall be paid to the CHAMBER on or before the forty-fifth (45th) day after the last day of such respective fiscal quarter for which such payment is due. If quarterly financial ana pe-rformance reports are not received within thirty (30) days of the end of the applicable quarter, then CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved. (c) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the CHAMBER. (d) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. 11. USE OF HOTEL TAX REVENUE BY CSAKHER 2.1 Use of Funds, For and in consideration of the payment by the CITY to the CHAMBER of the agreed payments of hotel tax funds specified above, the CHAMBER agrees to use such hotel tax funds only for the following purposes: (a) the furnishing of facilities, personnel, dnd materials for the registration of convention delegates or registrants; (b) advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or regis- trants to the municipality or its vicinity; (c) historical restoration and preservation projects or activities or advertising and conducting solicitations and promo- tional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; (i) at or in the immediate vicinity of convention center facilities or visitor information centers; or (ii) located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates. as authorized by TEX. TAX CODE $ 351.101(a)(2)-(5). 2.2 Administrative Costs. The hotel tax funds received from the CITY by the CHAMBER may be spent for day-to-day operations, sup- O O d plies, salaries, office rental, travel expenses, and other admini- strative costs that are incurred directly in the performance by the CHAMBER of those activities specified in 12.1 above and are allowed by TEX. TAX CODE $ 351.101(f). 2.3 epecifio Restriotioas on Use of Y%mds. PAGE 3 • O • ca • • (a) That portion of total administrative casts of the CHAMBER for which hotel tax funds may be used shall not e~cceed that portion of the CHAMBER'S administrative costs all incurred in con- ducting the activities specified in 12.1 above, to attend ant eventax t run onauct not be an activity tfor he travel for a which is not directly related to the person convention and hotel industry or the promotion of ltourismrerson's job in an efficient and performance of the persons professional manner. III. RECORD KEEPING AND REPORTINO REQpIRENE S 3.1 Budget. (a) On or before 7uly 71st of each calendar year during the term of this Agreement, the CHAMBER shall prepare and submit to the Cite Manager of the CITY an annual budget for the next ensuing fis- cnl year of this Agreement for tl:e Denton Convention and Visitors Bureau end any other operation or function of the CHAMBER in which the hotel tax funds shall be used by the CHAMBER. This budget shall specifically identify proposed expenditure of hotel tax funds by the CHAMBER. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended, The CITY shall not pay to the CHAMBER any agreed payments or hotel tax funds during any fiscal year of this Agreement unless such budget for such respective fiscal year has been a council. PProved in writing by the Denton City (b) The CHAMBER acknowledges that the approval by the Denton City Council creates a fiduciary duty in the CHAMBER with respect to the hotel tax funds paid by the CITY to the CHAMBER and rinhis Agreement. f hethUMBER shall expend hotel tax funds TEX. TAX CODE and in the budgetpaspapprspecified in S 351.202(a) proved by the CITY. 3.2 eeparate Accounts, The CHAMBER shall maintain any hotel tax funds paid to the CHAMBER by the CITY in a separate account, • 3.3 Financial Records. The CHAMBER shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the CHAMBER and, upon reasonably advance written re- o~C Finance his quest of the Denton City Council or the City's Executive Director avai able forrinspectiongand~ revshall iew bye thesDent Denton Cityi Councilror ® the city's Executive Director of Finance or his designee, ' • 3.4 Quarterly Reports. Within thirty days after the end of every quarter, the CHAMBER shall furnish to the CITY (1) a performance report of the work performed under this Agreement, in the form determined by the City Manager describing the activities performed under this Agreement during that quarter, and (2) a list of the PAGE 4 • G~ °Z f expenditures made with regard to hotel tax funds pursuant to the TEX. TAX CODE ANN. S 351.101(c) (Ver,ion 1994). The CHAMBER shall promptly respond to any request from the City Manager of the CITY for additional information relating to the activities performed under this Agreement. 3.8 Notice of xeetings. The CHAMBER shall give the City Manager of the CITY reasonable advance written notice of the time and place of general meetings of the Denton Chamber of Commerce Board of Dir- ectors as well as any other meeting of any constituency of the CHAMBER at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the CHAMBER to give notice of any executive session of the Executive Committee of the CHAMB1,T. Iv. R81xBIIRszKsNT AND ImmaiFIOATION 4.1 Reimbursement of Chamber for Administrative rusts. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the CHAMBER for any and all expenses and costs undertaken by the CHAMBER in performance of those activities specified in 12.1 above or expenses or costs incurred by the CHAMBER as described in 12.2 above. The CITY is obligated to reimburse the CHAMBER for expenses and costs as described in 12.2 above only for the period commencing upon the date notice of termination is given and ending upon the date of termination. Further, this obligation shall be limited to the lesser of the actual expenses and costs incurred by the CHAMBER during the one hundred eighty day period preceding termination or the agreed payments otherwise due and payable to the CHAMBER for such period. 4.2 Reimbursement of Chamber for Contractual obligations. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the CHAMBER for any and all contractu- al obligations of the CHAMBER undertaken by the CHAMBER in perPor- mance of those services specified in 12.1 above, conditioned upon such contractual obligations having been incurred and entered into in the good fafth performance of those services contemplated in 12.1 above, and further conditioned upon such contractual obliga- tions having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obliga- tion of the CITY to reimburse the CHAMBER or to assume the perfor- mance of any contractual obligations of the CHAMBER for or tinder any contract entered into by the CHAMBER as contemplated herein shall not exceed TEN THOUSAND DOLLARS ($10,000.00). Such monetary limitation is cumulative of all contractual obligations and shall p not be construed as a monetary limitation on a per contract basis. • • 4.3 Payment of Reimbursement to Chamber. (a) With respect to expenses and costs incurred by the CHAMBER for which the CITY is obligated to reimburse the CHAMBER pursuant to 14.1 above., the CITY shall pay such reimbursement PAGE 5 • 4 • as c~ - C/5 amount due, if any, to the CHAMBER on or before the forty-fifth (45th) day after the date of termination of this Agreement. (b) With respect to contractual obligations undertaken by the CHAMBER for which the CITY is obligated to reimburse the CHAMBER as provided in 14.2 above, the CITY shall reimburse the CHAMBER for such monetary obligations required in such contractual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of such contract limitation set forth in 14.2 above. 4.4 Indemnifioation. The CHAMBER agrees to indemnify, hold harmless, and defend the CITY, ito officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the CHAMBER or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of CHAMBER, its officers, employees, agents, subcontractors, licensees and invitees. 4.5 Insurance. The CHAMBER shall provide insurance as follows: $500,000 Commercial General Liability Statutory Workers' Compensation and Employers' Liability ($250,000/$500,000/$250,000) $500,000 Business Automobile Liability The CITY must be named as an additional. insured (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by the CITY. V. TERN AND TERMINATION 5.1 Term. The term of this Agreement shall be for two and one- half years, commencing April 1, 1995 and terminating at midnight on September 30, 1997. This term shall be comprised of an initial period of six (6) months and subsequent two (2) fiscal years, each • fiscal year constituting the period from October 1 of a calendar year to the next ensuing September 30. 5.2 Termination. (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance • written notice. (b) This Agreement shall automatically terminate upon the occurrence of any of the following events: (i) The termination of the corporate existence of the CHAMBER; PAGE 6 • ca e (ii) The insolvency of the CHAMBER, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or and assignment by the CHAMBER for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the CHAMBER for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (iv) The failure of the CHAMBER to submit a financial report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. GBNEM PROVISIONS 6.1 subcontract for Perforsanoe of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agree- nent by the CHAMBER with another private entity, person, or organi- zation for the performance of tose services described in 12.1 above. In the event that the CHAMBER enters into any arrangement, contractual or otherwise, with such other entity, person or organi- zation, the CHAMBER shall cause such other entity, person, or orga- nization to adhere to, conform to, and be subject to all provi- sions, terms, and conditions of this Agreement and to TEX. TAX CODE Chap. 351, including reporting requirements, separate funds main- tenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 Acknowledgment of Denton Convention and Visitors Bureau.. The CITY acknowledges that the services contemplated in this Agreement may be performed by the Denton Convention and Vis.`ors Bureau, a wholly-owned and managed entity within the CHAMBER. Any and all rights, benefits, obligations, and duties under this Agreement, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to the expenditure of the agreed payments and hotel tax funds, shall inure to the benefit and obligation of the Denton Convention and Visitors Bureau. The • Bureau shall not be construed to be a subcontractor or assignee under 16.1 or 16.4 of this Agreement. i 5.3 Independent Contractor. The CHAMBER shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The CHAMBER shall have exclusive control of its ? operations and performance of services hereunder, and such persons, • e entities, or organizations performing the same and the CHAMBER shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The CHAMBER shall not be considered a partner or joint venturer with the CITY, nor shall the CHAMBER be considered nor in any manner hold itself out as an agent or official representative of the CITY. PAGE 7 • 0 • 6.4 Assignment. The CHAMBER shall not assign this Agreement without first obtaining the written consent of the CITY. 6.3 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY CHAMBER If By Mail: City Manager President City of Denton Denton Chamber of Commerce 215 E. McKinney Drawer P Denton, TX 76201 Denton, TX 76202 If by hand-delivery: President Denton Chamber of Commerce 414 W. Parkway Denton, TX 76201 6.6 Inurement. This Agreement and each provision hereof, and each and every right, duty, obligation; and liability set forth herein shall be binding upon ana inure to the benefit and obligation of th, CITY and the CHAMBER and their respective successors and assigns. 6.7 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 6.8 Exclusive Agreement. This Agreement contains the entire understanding and constitutes the entire agreement between the V parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- standings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- went, which are not fully expressed herein. The terms and con- ditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions. I 6.9 Duplicate originals. This Agreement is executed in duplicate ' O originals. ~ • • 6.10 Headings. The headings and subheadings of the various sec- tions and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. PAGE 8 .........rte,,..... ~ r.a- rr.. '''`'.".,~L..(L ♦ -.w... • O I_. • L_ w • D6 -L EXECUTED this daffy of AA5 THE CITY OF DENTON, TEXAS By: BOB CASTLEBERRY, MAYOR ATTEST: APPROVED AS TO LEGAL FORM: By, By: JENNIFER WALTERS, MICHAEL A. BUCER, CITY SECRYTARY ACTING CITY ATTORNEY DENTON CHAMBER OF COMMERCE By: President ATTEST: APPROVED AS TO LEGAL FORM: By: By: Secretary • El\4iDOC51K1tMAIMEp.K PAGE 9 r ate r:ui °Sy~ 'tiff y.~ ua bj`fh..! "j'5~if ot" J h? • AGREEMENT BETWEEN THE CITY OF DENTON AND 45 V TEE (TREATER DENTON ARTS COUNCIL PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAI REVENUE THIS AGREEMENT made between the City of Denton, Texas, a muni- cipal corporation (the "City"), and the Greater Denton Arts Counci_, a non-profit corporation incorporated under the laws of the State Of Texas (the 11GDAC11)s WHEREAS, TEX. TAX CODE S 351.002 authorizes the CITif to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by ordinance 86-67, the CITY has provided for the assessment and colloctRn of a municipal hotel occupancy tax in the City of Denton of seven percent and WHEREAS, TEX. TAX CODE S35].101 (a) (4) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry for the encourage- ment, promotion, improvement, and application of the arts, inclun.Lng instrumental and vocal music, dance, drama, folk art, creative writing, architecture, design and allied fielr1s, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound recording, and other arts related to the presentation, performance, execution, and exhibition of these major art forms; and WHEREAS, the GDAC is well equipped to perform those activities through its Denton Convention and Visitors Bureau; and WHEREAS, TEX. TAX CODE $3:11.301 (c) authorizes the CITY to delegate by contract with the GDAC as a private organization the management and supervision of programs and activitiev of the type described hereinabove funded with revenue from the municipal. hotel occupancy tax; • NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the GDAC agree and contract as follows; I. HOTEL TAI REVENUE PAYMENT TO GDAC 1.1 Cnnsideration. For and in consideration of the activities, to • be performed by the GDAC under this Agreement, the CITY agrees to • • pay to the GDAC a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the GDAC sometimes herein referred to as "the agreed payments" or "hotel tax funds"). • t cjt~ 000. C) 1.2 Amount of Payments to GDAC. (a) As used in this agreement, the following terms shall have the following specific meanings; (1) The "hotel tax revenue" shall mean the monies col- lected and received by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (74) of the price paid for a room in a hotel, pursuant to TEX. TAX CODE 5351.002 and City ordinance 86-87, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax, but excluding interest and penalties received by the CITY from taxpayers. (ii) The term "base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of Lime (i.e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes frog taxpayers or auditing taxpayers for tax payment compli- a;ice, such collection and auditing costs to include fees paid to attorneys or agents not in the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax fz-ort taxpayers or audit such taxpayers; and (2) court costs and expenses incurred in litigation against or auditing of such taxpayers. (b) The cJTY shall pay to GDAC an amount of money equal to thirteen and thirty-five one hundredths of a percent (13.35%) of the base payment amount for the period of April 1, 1995, through September 30, 1995 or Thirty-three Thousand Six Hundred Fifty Dollars ($33,650.00), whichever is less. (c) The CITY shall pay to GDAC an amount of money equal to thirteen and thirty-five one hundredths of a percent (13.354) of the base payment amount for the period of October 1, 1995, through September 30, 1996 or Sixty-seven Thousand Three Hundred Dollars ($67,300.00), whichever is less. (d) The C[TY shall pay to GDAC an amount of money equal to thirteen and tt.irty-five one hundredths of a percent (13.35$) of the base paymert amount for the period of October 3996, through September 30, 1997 or Sixty-seven Thousand Three Hundred Dollars ($67,300.00), whichever is less. • • 0 1.3 Dates of Payments to GDAC. (a) The term "quarterly payments" shall mean payments by the CITY tc the GVAC of those amounts specified in 11.2 above as PAGE 2 rrr _ 1 • • 5 j'1 PI S/ determined by the hotel tax revenue collected by the CITY during any one fiscal quarter during the term of this Agreement. (b) CITY shall pay the GDAC the agreed payments specified in 11.2 above by quarterly paying thirteen and thirty-five one hundredths of a percent (13.358) or one fourth (1/4) of Sixty- seven Thousand Three Hundred Dollars ($67,300.00), whichever is less. Each such quarterly payment shall be paid to the GDAC on or before the forty-fifth (45th) day after the last day of such respective fiscal quarter for which such payment is due. If quarterly financial and performance reports are not received within thirty (30) days of the end of the applicable quarter, then CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved. (c) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the GDAC. (d) It obligates theiGeneral sFund ore any of r monies or contract edits of the CITY. II. USE OF HOTEL TAX REVENUE BY GDAC 2.1 Use +f Funds. For and in consideration of the payment by the CITY to the GDAC of the agreed payments of hotel tax funds spacified above, the GDAC agrees to use such hotel tax funds only for the following purposes: programs to vattertirasictngtouriand a ndingonvesolicntionitatdelions ror oregisl trants to the municipality or its vicinity; (b) the encouragement, promotion, improvement, and applica- tion of the arts, including instrumental and vocal muaic, dance, drama, folk art, creative writing, architecture, design and allied fields, painting, sculpture, photography, graphic and craft arts, motion pictures, radio, television, tape and sound reco:°ding, and • other arts related to the presentation, performance, execution, and exhibition of these major art forms; and (c) historical restoration and preservation projects or activities or advertising and conducting solicitations and promo- tional programs to encourage tourists and convention delegates to visit preserved historic sites or museums- Q! • • (i) at c_ in the immediate vicinity of convention center facilities or visitor information centers; or PAGE 3 b 0 • ` i 8 ~s I (ii) located elsewhere in the municipality or its vicinity that would be frequented by tourists and convention delegates. r as authorized by TEX. TAX CODE S 351.101(a)(2)-(5). 2.2 Adninistrative Costs. Thu hotel tax funds received from the CITY by the GDAC may be spent for day-to-day operations, supplies, salaries, office rental, travel expenses, and other administrative costs that are incurred directly in Au performance by the GDAC of those activities specified in 12.1 above and are allowed by TEX. TAX CODE S 351.101(f). 2.3 specific Restrictions on use of Funds. (a) That portion of total administrative costs of the GDAC for which hotel tax funds may be used shall not exceed that portion of the GDAC'S administrative costs actually incurred in conducting the activities specified in 12.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. III. RECORD KEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) On or before Julv 31st of each calendar year during the term of this Agreement, the GDAC shall prepare and submit to the City Manager of the CITY an annual budget for the next ensuing fis- cal year of this Agreement for the Denton Convention and Visitors Bureau and any other operation or function of the GDAC in which the hotel tax funds shall be used by the GDAC. This budget shall specifically identify proposed expenditure of hotel tax funds by the GDAC. In other surds, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax finds will be expended. The CITY shall not pay to the CDAC any agreed payments or hotel tax funds during any fiscal year of this Agreement unless such ludget for sL;h respective fiscal year has been approved in writing by the Denton City Council. (b) The GDAC acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the GDAC with ® respect to the hotel tax funds paid by the CITY to the GDAC under this Agreement. The GDAC shall expend hotel tax funds only in the , • • manner and for the purposes specified in S 351.101(a) TEX. TAX CODE and in the budget as approved by the CITY. 3.2 Separate Accounts. The GDAC shall maintain any hotel tax funds paid to the GDAC by the CITY in a separate account. PAGE 4 i • I ~ • ls. 3.3 Financial Records. The GDAC shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the GDAC and, upon reasonably advance written request of the Denton City Council or the City's Executive Director of Finance or his designee, shall make such financial records available for inspection and review by the Denton City Council or the City's Executive Director of Finance or his designee. 3.4 Quarterly Reports. Within thirty days after the end of every quarter, the GDAC shall furnish to the CITY (1) a performance report of the wor'< performed under this Agreement, in the form determined by the City Manager describing the activities performed undo r this Agreement during that quarter, and (2) a list of the expenditures made with regard to hotel tax funds pursuant to the TEX. TAX CODE ANN. S 351.101(c) (Vernon 1994). The GDAC shall promptly respond to any request from the City Manager of the CITY for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The GDAC shall give the City Manager of the CITY reasonable advance written notic.of the time and place of general meetings of Greater Denton Arts Council Board of Directors as well as any other meeting of any constituency of the GDAC at which this Agreement or any matter the sub,oct of this Agreement shall be considered. This provision shall not be deemed to require the GDAC to give notice of any e,:ecutive seesion of the Executive Committee of the GDAC. IV. REIMBURSEMENT AND INDEMNIFICATION 4.1 Reimbursement of GDAC for Administrative costs. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the GDAC for any and all expenses and costs undertaken by the GDAC in performance of those activities specified in 12.1 above or expenses or costs incurred by the GDAC as described in 12.2 above. The CITY is obligated to reimburse the GDAC for expenses and costs as described in 12.2 above only for the period commencing upon the date notice of termination is given and • ending upon the date of termination. Further, this obligation shall b~ limited to the lesser of the actual expenses and costs incurred by the GDAC during the one hundred eighty day period preceding termination or the agreed payments otherwise due and piyable to the GDAC for such period. 4.2 Reimbursement of GDAC for Contractual obligations. In the event that this Agreement is terminated pursuant to Section 5.2(a)0 the CITY agrees to reimburse the GDAC for any and all contractual • • obligations of the GDAC undertaken by the GDAC in performance of those services specified in 12.1 above, conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 12.1 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. PAGE 5 • 0 • • Notwithstanding any provision hereof to the contrary, the obliga- tion of the CITY to reimburse the GDAC or to assume the performance of any contractual obligations of the GDAC for or under any contract entered into by the GDAC as contemplated herein shall not exceed THREE THOUSAND FIVE HUNDRED DOLLARS ($9,500.00). Such monetary limitation is cumulative of all contractual obligations and shall not be construed as a monetary limitation on a per contract basis. 4.3 Payment of Reimbursement to GDAC. (a) With respect to expenses and costs incurred by the GDAC for which the CITY is obligated to reimburse the GDAC pursuant to 14.1 above, the CITY shall pay such reimbursement amount due, if any, to the GDAC on or before the forty-fifth ( 3th) day after the date of termination of this Agreement. (b) With respect to contractual obligations undertaken by the GDAC for which the CITY is obligated to reimburse the GDAC as provicid in 14.2 above, the CITY shall reimburse the GDAC for such monetary obligations required in such contractual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of such contract limitation set forth in 14.2 above. 4.4 In4urftifieati0n. The GDAC agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the GDAC or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of GDAC, its officers, employees, agents, subcontractors, licensees and invitees. 4.s insuranoe. The GDAC shall provide insurance as followsi $500,000 Commercial General Liability • Statutory Workers' Compensation and Employers' Liability ($250,000/$500,000/$250,000) $500,000 Business Automobile Liability The CITY must be named as an additional insured (except Workers' Compensation) and proof of coverage shall be submitted prior to any payment by the CITY. • V. TER!! AND TRUINATION • • 5.1 Term. The term of this Agreement shall be for two and one- half years, commencing April 1, 1995 and terminating at midnight on September 30, 1997. This term shall be comprised of an initial period of six (6) months and subsequent two (2) fiscal years, each PAGE 6 • ca s fiscal year constituting the period from October 1 of a calendar year to the next ensuing September 30. 5.2 Termination. (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. (b) This Agreement shall automatically terminate upon the occurrence of any of the following events: (i) The termination of the corporate existence of the GDAC; (ii) The insolvency of the GDAC, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or and assignment by the GDAC for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the GDAC for more than thirty (30) days after written notice of such breach is given to the breachir.g party by the other party; or (iv) The failure of the GDAC to submit a financial report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term, VI. GENERAL PROVISIONS 6.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agree- ment by the GDAC with another private entity, person, or organi- zation for the performance of those services described in 12.1 above. In the event that the GDAC enters into any arrangement, contractual or otherwise, with such other entity, person or organi- zation, the GDAC shall cause such other entity, perso, or orga- nization to adhere to, conform to, and be subject to all provi- sions, terms, and conditions of this Agreement and to TEX. TAX CODE Chap. 351, including reporting requirements, separate funds main- tenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 Independent Contractor. The GDAC shall operate as an independent contractor as to all services to be performed under • this Agreement and not as an officer, agent, servant, or employee • • of the CITY. The GDAC shall have exclusive control of its operations and performance of services hereunder, and such persons, i entities, or organizations performing the same and the GDAC shall ~ be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The GDAC shall not be considered a partner or joint venturer with the CITY, nor PAGE 7 • O i q,5 - D Da w_.5 a-a~ - q 5 2~~ 1 fiscal year constituting thu period from October 1 of a calendar year to the next ensuing September 30. 5.2 Termination. (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. (b) This Agreement shall automatically terminate upon the occurrence of any of the following events: (i) The termination of the corporate existence of the GDAC; (ii) The insolvency of the GDAC, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or and assignment by the GDAC for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the GDAC for more than thirty (30) days after written notice of such breECh is given to the breaching party by the other party; or (iv) The failure of the GDAC to submit a financial report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. GENERAL PROVISIONS 5.1 Subcontract for Performance of Services. Nothing in thfa Agreement shall prohibit, nor be construed to prohib'l, the agree- ment by the GDAC with another private entity, person, or organi- zation for the performance of those services described in 12.1 above. In the event that the GDAC enters into any arrangement, contractual or otherwise, with such other entity, person or organi- zation, the GDAC shall cause such other entity, person, or orga- nization to adhere to, conform to, and be subject to all provi- sions, terms, and conditions of this Agreement and to TEX. TAX CODE Chap. 351, including reporting requirements, separate funds main- tenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 Independ4nt Contractor. The GDAC shall operate as an independent contractor as to all services to be performed under ® this Agreement and not as an officer, agent, servant, or employee j i of the CITY. The GDAC shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the GDAC shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The GDAC shall not be considered a partner or joint venturer with the CITY, nor PAGE 7 ~sroo w -Aq shall the GDAC be considered nor in any manner hold itself out as an agent or official representative of the CITY. 6.3 Assignasnt. The GDAC shall not assign this Agreement without first obtaining the written consent of the CITY. 6.4 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when given in writing and depocited in tha United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY GDAC City Manager Executive Director City of Denton Greater Denton Arts Council 215 E. McKinney 207 S. Bell Denton, TX 76201 Denton, TX 76201 6.5 Inursasnt. This Agreement and each provision hr,rsof, and each and every right, duty, obligation, and liability s,At forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the GDAC and their respective successors and Lssigns. 6.6 Application of Lars. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the C1,arter of the City of Denton, all ordinances passed pursuant th,sreto, and all judicial determinations relative thereto. 6.7 8xclusive Agrssasnt. This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- standings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- ment., which are not fully expressed herein. The terms and ccn-. d:tions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any • other document relating to this transaction or these transactions. 6.8 Duplicate Originals. This Agreement is executed in duplicate originals. 6.9 Readings. 'rho headings and subheadings of the various sec- tions and paragraphs of this Agreement are inserted merely for the • purpose of convenience and do not express or imply any limitation, • • definition, or extension of the specific terms of the section and paragraph so designated. PAGE B O 0 i vul ZU~ S t EXECUTED this day of 1995 THE CITY OF DENTON, TEXAS By: BOB CASTLEBERRY, MAYOR ATTEST: APPROVED AS TO LEGAL FORM: " l/~ By. By s ZeI4'd ez, JENNIFER WALTER3, MICHAEL A. BUCER, `7 CITY SECRETARY ACTING CITY ATTORNEY GREATER DENTON ARTS COUNCIL By: President AWESTt APPROVED AS TO LEGAL FORM: By: By: Secretary • 41 \WDWS\K\GOAC. K PAGE 9 r'n'~L+`^•..'. +r w.w..~6lIi9YK(1 C'wl r..,~ + r t t'. { t; Y r . • ~ ~ = 1t 141 ~+<<~r t~, f}~~i An~~'ri5 r~i ~'~r~r ' t,g~~ir \~.ut a s Cvl AGREEMENT BETWEEN THE CITY OF DENTON AND 2 J (~j S I THE NORTH TEXAS STATE FAIR ASSOCIATION l(// PROVIDING FOR THE PAYMENT AND USE OF HOTEL TAI REVENUE THIS AGREEMENT made betwnen the City of Denton, Texas, a muni- cipal corporation (the "City"), and the North Texas State Fair Association, a non-profit corporation incorporated under the lass of the State of Texas (the "Association"): WHEREAS, TEX. TAX CODE S 351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax ("hotel tax") not ? exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by Ordinance 86-67, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7k); and WHEREAS, TEX. TAX CODE $351.101 (a) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by advertising and conducting solicitations and promotional programs to attract tourists and con- vention delegates or registrants to the municipality or its vicinity; and WHEREAS, the ASSOCIATION activities through its Denton Convention and Visitors Bureau; and WHEREAS, TEX. TAX CODE 5351.101 (c) authorizes the CITY to delegate by contract with the ASSOCIATION as a private organization the management and supervision of programs and activities of the type described hereinabove funded with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the ASSOCIATION agree and cont ....act as follows, IS I. HOTEL TAI AiAVENUE PAYMENT TO ASSOCIATION 1.1 Consideration. For and in consideration of the activities to be performed by the ASSOCIATION under this Agreement, the CITY agrees to pay to the ASSOCIATION a portion of the hotel tax revenue collected by the CITY at the rates a,id in the manner specified herein (such payments by the CITY to the ASSOCIATION sometimes ® herein referred to as "the agreed payments" or "hotel tax funds"). 1.2 Amount of Payments to Association. (a) As used in this agreement, the following terms shall have the following specific meanings; • I- ca M y (i) The "hotel tax revenue" shall mean the monies col- lected and received by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (7$) of the price paid for a room in a hotel, pursuant to TEX. TAX CODE 8351.002 and City ordinance 86-87, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax, but excluding interest and penalties received by the CITY from taxpayers. (ii) The term "base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes from taxpayers or auditing taxpayers fnr tax payment compli- ance, such collection and auditing costs to include fees paid to attorneys or agents not in the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax from taxpayers or audit such taxpayers, and (2) court costs and expenses incurred in litigation against or auditing of such taxpayers. (b) The CITY shall pay to ASSOCIATION an amount of money equal to twelve and seven tenths of a percent (12.70%) of the base payment amount for the period of April 1, 1995, through September 30, 1995 or Thirty-twc Thousand Dollars ($32,000.00), whichever is less. (c) The CITY shall pay to ASSOCIATION an amount of money squal to twelve and seven tenths of a percent (12.108) of the base payment amount for the period. of Octobor 1, 1995, through September 30, 1996 or Sixty-four Thousand Dollars ($64,000.00), whichever is less. (d) The CITY shall pay to ASSOCIATION an amount of money y equal to twelve and seven tenths of a percent (12.700 of the base payment amount for the period of October 1, 1996, through September 30, 1997 or Sixty-four Thousand Dollars ($64,000.00), whichever is less. 2.3 Dates of Payments to Association. • (a) The term Itquarterly payments" shall mean payments by the CITY to the ASSOCIATION of those amounts specified in 11.2 above as determined by the hotel tax revenue collected Ly the CITY during any one fiscal quar':er during the term of this Agrsament. (b) CITY sha:.l pay the ASSOCIATION the agreed payments ~ specified in 11.2 above by quarterly paying twelve and seven tenths of a percent (12.70%) of the base amount or one-fourth (1/4) of PAGE 2 • 0 , unsaid • Y rj. a J o$ S I Sixty-four Thousand Dollars ($64,000.00), whichever is less. Each such quarterly payment a 45th) b aayaiatter the last ASSOCIATION Oof osuch before the forty-fifth , respective fiscal quarter for which such payment is clue. I quarterly financial and performanre reports are n quarteri then CITY thi kv)) day of the mayrwithhold thesquarterlyn ayment(s)auntil the appropriate reports are received and approved. (c) The funding of this project in n,> way commits the CTIi1 to future funding of thie, program beyond the current contract period. Any future funding is solely the responsibility of the ASSOCIATION. (d) It is expressly understood that this contract in no way obl.lates the General Fund or any othor monies or credits of the CITY. 13. USE OF HOTEL TAX REVENUE B`' MSOCIATION 2.1 r:s of Funds. For and in consideration of thn payment by the CITY to th,a ASSOCIATION of the agreed payments of hotel tax funds specified ,above, the ASSOCIATION agrees to use such hotel tax funds only for the following purposes: (a) advertising and conductit.•; solicitations and promotional programs to attract tourists Inds conve tyon delegates or regis- trants to the municipality vici; as authorized by TEX. TAX CODE 5 351.101(a)(2)-(5)• unds ns, spent tax eC from 22 the tASSOCIATION Costs. The for fda -to-day CITY by Y supplies, salaries, office rental, travel expenses, and other administrative costs that are incurred directly in the performanc.p CODE S 751.101specified in 12.1 above and are a ASSOCIATION d by TEX. TAX of those 2.3 Specific Restrictions on use of Funds. • (a) That portion of total administrative costs of the that actually ASSOCIATION oZ the hASSOCIATION S funds administi:ative not exceed that portion incurred in conducting the activities specified in 12.1 above. (b) Hotel tax funds may not be spent for travel forrsof • to attend an event or conduct an activity the primary put-pose which is not directly related to the promotion of tourism and the ' • • convention ea>?d hotel and professional the performanc•a of the person's j { PAGE 3 i G • III. RECORD SEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) On or before July 31st of each calendar year during the term of ?'his Agreement, the ASSOCIATION shall prepare and submit to the City Manager of the CITY an annual budget for the next ensuing fiscal year of this Agreement for the Denton Convention and Visitors Bureau and any other operation or function of the ASSOCIATION in which the hotel tax funds shall be used by the ASSOCIATION. This budget shall specifically identify proposed expenditure of hotel tax funds by the ASSOCIATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the ASSOCIATION any agreed payments or hotel tax funds during any fiscal year of this Agreement unless such budget for such respective fiscal year has been approved in writing by the Denton City Council. (b) The ASSOCIATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the ASSOCIATION with respect to the hotel tax funds paid by the CITY to tt the ASSOCIATION under this Agreement. The ASSOCIATION shall expend 1 hotel tax funds only in the manner and for the purposes specified in S 351.101(a) TEX. TAX CODE and in the budget as approved by the CITY. 3.2 Separate ~kooounts. The ASSOCIATION shall maintain any hotel tax funds p d to the ASSOCIATION by the CITY in a separate account. 3.3 Finanoial Rooorde. The ASSOCIATION shall maintain complete and accurate financial records of each expenditure of the hotel tax funds made by the ASSOCIATION and, upon reasonably advance written request of the Denton city council or the City's Executive Director of Finance or his designee, shall make such financial records available for inspection and review by the Denton City council or the City's Executive Director of Financn or his designee. i • 3.4 Quarterly Reports. Within thirty days after the end of every quarter, the ASSOCIATION shall furnish to the CITY (1) a pe- or- i mance report of the work performed under thiE Agreement, in the form determined by the City Manager describing the activities performed under this Agreement during that quarter, and (2) a list of the expenditures made with regard to hotel tax funds pursuant to the TEX. TAX CODS ANN. S 351.101(c) (Vernon 1994). The ASSOCIATION 0 shall promptly respond to any request from the City Manager of the • CITY for additional information relating to the activities performed under this Agreement. 345 NOtioe of Meetings. The ASSOCIATION shall give the City Manager of the CITY reasonable advance written notice of the time and placa of general meetings of the North Texas Fair Association PAGE 4 • 0 • Board of Directors as well as any other meeting of any constituency of the ASSOCIATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the ASSOCIATION to give notice of any executive session of the Executive Committee of the ASSOCIA- TION. IV. RBIMBURBBMHNT AND INDEMNIFICATION 4.1 Reimbursement of Association for Administrative Costs. In the event that this Agreemen6 is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the ASSOCIATION for any and all expenses and costs undertaken by the ASSOCIATION in performance of those activities specified in 12.1 above or expenses or costs incurred by the ASSOCIATION as described in 12.2 above. The CITY is obligated to reimburse the ASSOCIATION for expenses and costs as described in 12.2 above only for the period commencing upon the date notice of termination is given and ending upon the date of termination. Further, this obligation shall be limited to the lesser of the actual expenses and costs incurred by the ASSOCIATION during the one hundred eighty day period preceding termination or the agreed payments otherwise due and payable to the ASSOCIATION for such period. 4.2 Reimbursement of Association for contractual Obligations. a the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the ASSOCIATION for any and all contractual obligations of the ASSOCIATION undertaken by the ASSOCIATION in performance of those services specified in 12.1 above, conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 12.1 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of the CITY to reimburse the ASSOCIA- TION or to assume the performance of any contractual obligations of the ASSOCIATION for or under any contract entered into by the ASSOCIATION as contemplated herein shall not exceed THREE THOUSAND FIVE HUNDRED DOLLARS ($3,500.00). Such monetary limitation is cumulative of all contractual. obligations and shall not be construed as a monetary limitation cn a per contract basis. 4.3 Payment of Reimbursement to Association. (a) With respect to expenses and costs incurred by the A ASSOCIATION for which the CITY is obligated to reimburse the ASSOCIATION pursuant to 14.1 above, the CITY shall pay such • • reimbursement amount due, if any, to the ASSOCIATION on or before the forty-fifth (45th) day after the date of termination of this Agreement. (b) with respect to contractual obligations undertaken by the ASSOCIATION for which the CITY is obligated to reimburse the PAGE 5 1 • s ASSOCIATION as provided in 14.2 above, the CITY shall reimburse he S' ASSOCIATION for such monetary obligations required in such contractual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of such contract limitation set forth in 14.2 above. 4.4 Inaemnifioation. The ASSOCIATION agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind. or character, arising out of or in connection with the performance by the ASSOCIATION or those serviced contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of ASSOCIATION, its officers, employees, agents, subcontractors, licensees and invitees. 4.8 Insurance. The ASSOCIATION shall provide insurance as follows: $500,000 Commercial General Liability Statutory Workersf Compensation and Employers' Liability ($250,0001$500,0001$250,000) $500,000 Business Automobile Liability The CITY must be named as an additional insured (except Workars' Compensation) and proof of coverage shall be submitted prior to any payment by the CITY. V. TORN AND TE MATION 5.1 Term. The term of this Agreement shall be for two and one- half years, commencing April 1, 1995 and terminating at midnight on September 30, 1997. This term shall be comprised of an initial period of six (6) months and subsequent two (2) fiscal years, each fiscal year constituting the period from October 1 of a calendar year to the next ensuing September 30. 3.2 Teraination. • (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. (b) This Agreement shall automatically terminate upon the occurrence of any of the following events: (i) The termination of the corporate existence of the ASSOCIATION) ; petition )inTbankruptcy, oeither h voluntarily or r involuntariof a ly, PAGE 6 • Co 2 or and assignment creditors; by the ASSOCIATION for t~benefit of -gfgs c (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the ASSOCIATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (iv) The failure of the ASSOCIATION to submit a finan- cial report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. ORMAL PROVISIONS 6.1 Subcontract for Performance of Servioes. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agree- ment by the ASSOCIATION with another private entity, person, or organization for the performance of those services described in 12.1 above. In the event that the ASSOCIATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the ASSOCIATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE Chap. 351, including reporting requirements, separate funds maintenance, and limitations and prohibitions pertaining to expenditura of the agreed payments and hotel tax funds. 6.2 independent Contractor. The ASSOCIATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The ASSOCIATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the ASSOCIATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors, The ASSOCIATION shall not be considered a partner or joint venturer • with the CITY, nor shall the ASSOCIATION be considered nor in any manner hold itself out as an agent or official representative of the CITY, 6.3 Assignment. The ASSOCIATION shall not assign this Agreement without first obtaining the written consent of the CITY. • 6.4 Notice. Any notice required to be given under this Agreement ~ • ~ or any statute, ordinance, or regulation, shall be effective when r mail,Y return treceipt drequestd, or the hand-delivery, addressed certified to the respective parties as follows: PAGE 7 • 0 • a • CITY A690CIAT~ON s/ City Manager President City of Denton North Texas State Fair Association 215 E. McKinney P. 0. Box 1695 Denton, TX 76201 Denton, TX 76202 6•5 Inurement. This Agreement and each provision hereof, and every right, duty, obligation, and liability se and each t forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the ASSOCIATION and their respective successors and' assigns. `.s Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judiofal determinations relative thereto. E.7 Rxolusive Agreement, This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- otandings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- ment, which are not fully expressed herein. The terms and con- ditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or theme transactions. 4.8 Duplicate Originals* This Agreement is executed in duplicate originals. 6.9 Headings. The headings and subheadings of the various sec- tions and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. EXECUTED this day of ~ 1995. THE CITY OF DENTON, TEXAS By$ HOB CA&TLEHERR , y g J i PAGE a i.. ~ u 1 i t Lv / -y • w • ATTEST: .-W-L-~-- APPROVED AS TO LEGAL FORM:- By. By =/1G /L.zn4 Cc~ JENNIFER WALT£R6, c CITY SECRETARY EL A. B ACTING CITY ATTORNEY NORTH TEXAS STATE FAIR ASSOCIATION By: President ATTEST: APPROVED AS TO LEGAL FORM: By.. By: secretary f i Ei\WDMS\K\NTFAIN,K PAGE 9 • ~ 1 ~ ~.1. t ~i c;q~~ ~ " S ~~~Lai~H~i^!r~?i~ }S~~i'~if r~i • q AGREEMENT BETWEEN TEE CITY OF DENTON AND THE DENTON COUNTY HISTORICAL MUSEUM PROVIDING FOR THE PAYMENT AND USE OT HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a muni- cipal corporation (the "City"), and the Denton County Historical Museum, a non-profit corporation incorporated under the laws of the State of Texas (the "Museum"); WHEREAS, TEX. TAX CODE S 351.002 authorizes the CITY to levy bxceedin an6ev a municipal hotel occupancy tax ("hotel tax") not occupant; and percent (7$) of the consideration paid by a hotel assessmentAand collection of a municipal hlot lioccupancyet:ax in the City of Denton of seven percent (7$); and WHEREAS, TEX. TAX CODE 8351.101 (a)(5) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry performing historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums at or in the immediate vicinity of convention center facilities, or located elsewhere in the municipality or its vicinity that would be frequented by tourists, convention dele- gates, or other visitors to the municipality; and , the MUSEUM activities through Its Denton s C n ©ntion land Visitors rBureau, and delegaHERE S, EX. TAX CODE S-351.101 MUSEUM as (a) authorizes the CITY to management and supervision of programs andractivities nofathentype described hereinabove fundeu with revenue from the municipal hotel occupancy tax; NOW, THEREFORE, in consideration of the performance of the • mutual covenants and promises contained herein, the CITY and the MUSEUM agree and contract as follows; I• HOTEL TAX REVENUE PAYMENT TO MUSEUM i.i Consideration. For and in consideration of the activities to be performed by the MUSEUM under this Agreement, the CITY agrees to • pay to the MUSEUM a portion of the hotel tax revenue collected by • the CITY at the rates and in the manner specified herein (such payments by the CITY to the MUSEUM sometimes herein referred to as "the agreed payments" or "hotel tax funds"). i • 0 • Q • c.>) J'j J 1.2 Amount of Payments to Museum. (a) As used in this agreement, the following terms shall have the following specific meanings: (i) The "hotel tax revenue" shall mean the monies col- lected and received by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (7$) of the price paid for a room In a hotel, pursuant to TEX. TAX CODE $351.002 and City Ordinance 86-87, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax, but excluding interest and penalties received by the CITY from taxpayers. (ii) The term "base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes from taxpayers or auditing taxpayers for tax payment compli- ance, such collection and auditing costs to include fees paid to attorneys or agents not in the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax from taxpayers or audit such taxpayers; and (2) court coats and expenses incurred in litigation against or auditing of such taxpayers. (b) The CITY shall pay to MUSEUM an amount of money equal to eleven and fifteen one hundredths of a percent (11.15%) of the base payment amount for the period of April 1, 1995, through September 30, 1995 or Twenty-eight Thousand One Hundred Dollars ($28,100.00), whichever is less. (c) The CITY shall pay to MUSEUM an amount of money equal to eleven and fifteen one hundredths of a percent (11.15%) of the base payment amount for the period of October 1, 1995, through September 30, 1996 or Fifty-six Thousand Two Hundred Dollars ($56,200.00), whichever is less. (d) The CITY shall pay to MUSEUM an amount of money equal to eleven and fifteen one hundredths of a percent (11.15$) of the base payment amount for the period of October 1, 1996, through September 30, 1997 or Fifty-six Thousand Two Hundred Dollars ($56,200.00), whichever is less. ' + . s 1.3 Dates of Payments to Museum. (a) The term "quarterly payments" shall mean payments by the CITY to the MUSEUM of those amounts specified in 11.2 above as PAGE 2 • ca determined by the hotel tax revenue collected by the CITY during any ore fiscal quarter during the term of this Agreement. (b) CITY shall pay the MUSEUM the agreed payments specified in 31.2 abc.ve by quarterly paying eleven and fifteen one hundredths of a percent (11.15%) of the base amount or one-fourth (1/4) of Fifty-six Thousand Two Hundred Dollars ($56,200.00), whichever is less. Each such quarterly payment shall be paid to the MUSEUM on or before the forty-fifth (45th) day after the last day of such respective fiscal quarter for which such payment is due. If quarterly financial and performance reports are not received within thirty (30) days of the end of the applicable quarter, then CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved. (c) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the MUSEUM. (d) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY, II. U8E OF HOTEL TAZ RBVEHUB BY NUBRUK 2.1 Use of PunAs. For and in consideration of the payment by the CITY to the MUSEUM of the agreed payments of hotel tax funds specified above, the MUSEUM agrees to use such hotel tax funds only for the following purposes: (a) advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or regis- trants to the municipality or its vicinity] and (b) historical restoration and preservation projects or activities or advertising and conducting solicitations and promo- tional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; • (i) at or in the immediate vioinity of convention center facilities or visitor information centers or vicinity )that located would belfrequented n by htourists municipality icor its onvention delegates. • as authorized by TEX. TAX CODE S 351.101(a)(2)-(5), 2.2 Adainistrativs Costs. The hotel tax funds received from the CITY by the MUSEUM may be spent for day-to-day operations, sup- plies, salaries, office rental, travel expenses, and other admini- strative costa that are incurred directly in the performance by the PAGE 3 • ca • 3 74 S1 MUSEUM of those activities specified in 12.1 above and are allowed by TEX. TAX CODE S 351.101(f), 2.3 specific Restrictions on us* of Funds. (a) That portion of total administrative costs of the MUSEUM for which hotel tax funds may be used shall not exceed that portion of the MUSEUM'S administrative costs actually incurred in con- ducting the activities specified in 12.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. III. RBCORD EEEPINU AND kEPORTING REQUIREI(ENTO 3.1 Budget. (a) On or before July 31st of each calendar year during the term of this agreement, the MUSEUM shall prepare and submit to the City Manager of the CITY an annual budget for the next ensuing fis- cal year of this Agreement for the Denton Convention and Visitors Bureau and any other operation or function of the MUSEUM in which the hotel tax funds shall be used by the MUSEUM. This budget shall specifically identify proposed expenditure of hotel tax funds by the MUSEUM. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the MUSEUM any agreed payments or hotel tax funds during any fiscal year of this Agreeiw,it unless such budget for such respective fiscal year has beer) approved in writing by the Denton City Council. (b) The MUSEUM acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the MUSEUM with respect to the hotel tax funds paid by the CITY to the MUSEUM under this Agreement. The MUSEUM shall expend hotel tax funds only • in the mariner and for the purposes specified in S 351.101(x) TEX. TAX CODE and in the budget as approved by the CITY. 3.2 separate Accounts. The MUSEUM shall maintain any hotel tax funds paid to the MUSEUM by the CITY in a separate account. 3.3 Financial Records. The MUSEUM shall maintain complete and • accurate financial records of each expenditure of the hotel tax • funds made by the MUSEUM. and, upon reasonably advance written re- quest of the Denton City Council or the City's Executive Director of Finance or his designee, shall make such financial records available for inspection and review by the Denton City Council or the City's Executive Director of Finance or his designee. 6 PAGE 4 1 • d 0 0 Uc l f ~ _C 3.4 Quarterly Reports. Within thirty days after the and of every 3 8~ quarter, the MUSEUM shall furnish to the CITY (1) a performance report of the work performed under this Agreement, in the form determined by the City Manager describing the activities performed under this Agreement during that quarter, and (2) a list of the TEX. TAXuCODEmANN.w$t351.1101(c)o(Vernont1994). TherMUSEUMtshall promptly respond to any request from the City Manager of the CITY for additional information relating to the activities performed under this Agreement. 3.5 Notice of Meetings. The MUSEUM shall give the City Manager of the CITY reasonable advance written notice of the tiz'.a and place of general meetings of the Denton County Historical Museum Board of Directors as well as any other meeting of any constituency of the MUSEUM at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the MUSEUM to give notice of any executive session of the Executive committee of the MUSEUM. x IV. REIKSUREENENT AND INDEMNIFICATION 4.1 Reimbursement of Museum for Administrative costs. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the MUSEUM for any and all expenses and costs undertaken by the MUSEUM in performance of those activities specified in 12.1 above or expenses or costs incurred by the MUSEUM as described in 12.2 above. The CITY is obligated to reimburse the MUSEUM for expenses and costs as described in 12.2 above only for the period commencing upon the date notice of termination is given and ending upon the date of termination. Further, this obligation shall be limited to the lesser of the actual expenses and costs incurred by the MUSEUM during the one hundred eighty day period preceding termination or the agreed payments otherwise due and palable to the MUSEUM for such period. 4.2 Reimbursement of Museum for Contractual obligations. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the MUSEUM for any and all contractual r obligations of the MUSEUM undertaken by the MUSEUM in performance of those services specified in 1.2.1 above, conditioned upon such contractual obligations having been incurred and entered into in the good faith performance of those services contemplated in 12.1 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obliga- tion of the CITY to reimburse the MUSEUM or to assume the perfor-for contramance anyecontred obligations of astcontemplated herein shall f not exceed THREE THOUSAND DOLLARS ($3,000,00). Such monetary limitation is cumulative of all contractual obligations and shall not be construed as a monetary limitation on a per contract basis. F PAGE 5 O 0 • cu • W d . s ci 4.3 Payment of Reimbursement to Museum. (a; With respect to expenses and costs incurred by the MUSEUM for which the CITY is obligated to reimburse the MUSEUM pursuant to 14.1 above, the CITY shall pay such reimbursement amount due, if any, to the MUSEUM on or before the forty-fifth (45th) day after the date of termination of this Agreement. (b) With respect to contractual obligations undertaken by the MUSEUM for which the CITY is obligated to reimburse the MUSEUM as provided in 14.2 above, the CITY shall reimburse the MUSEUM for such monetary obligations required in such contractual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of Such contract limitation set forth in 14.2 above, 4.4 Indemnification. The MUSEUM agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any and all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the MUSEUM or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional acts of MUSEUM, its officers, employees, agents, subcontractors, licensees and invitees. 4.5 Insurance. The MUSEUM shall provide insurance as follows: $500,000 Commercial General Liability Statutory Workers' Compensation and Employers' Liability ($250,000/$500,000/$250,000) $500,000 Business Automobile Liability The CITY must be named ai an additional insured (except Workers' Compensation) and proof of coverage shall be submitted prior ~o any paymei,t by the CITY. • V. TERM MM TBRKINATION 5.1 Ten. The term of this Agreement shall be for two and one- half years, commencing April 1, 1995 and terminating at midnight on September 30, 1997. This term shall be comprised of an initial period of six (6) months and subsequent two (2) fiscal years, each fiscal year constituting the period from October 1 of a calendar • year to the next ensuing September. 30. 5.2 Termination. (a) This Agreement. may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. i i PAGE 6 • w 0 J,<, (b) This Agreement shall automatically termiKate upon theU U occurrence of any of the following events: (i) The termination of the corporate existence of the MUSEUM; (1i) The insolvency of the MUSEUM, the filing of a petition in bankruptcy, either voluntarily or involuntarily, or and assignment by the MUSEUM for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the MUSEUM for more than thirty (30) days after written notice of such breach is given to tho breaching party by the other party; or (iv) The failure of the MUSEUM to submit a financial y report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. OEMRRAI, PROVISIONS 6.1 Subcontract for Performance of Services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agree- ment by the MUSEUM with another private entity, person, or organi- zation for the performance of those services described in 12.1 abuve. In the event that the MUSEUM enters into any arrangement, contractual or otherwise, with such other entity, person or organi- zation, the MUSEUM shall cause such other entity, person, or orga- nization to adhere to, conform to, and be subject to all provi- sions, terms, and conditions of this Agreement and to TFX. TAX CODE Chap. 352, including reporting requirements, separate f.,.nds main- tenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 Indepen.:ant Contractor. The MUSEUM shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee • of the CITY. The MUSEUM shall have exclusive control of its operations and performance of services hereunder, and such persons, j entities, or organizations performing the same and the MUSEUM shall be solely responsible for the acts and omiss.ionm of Lts directors, officers, employees, agents, and subcontractors. The MUSEUM shall not be considered a partner or joint venturer with i`.he CITY, nor shall the MUSEUM be considered nor in any manner hold itself out as , 0 an agent ci official representative of the CITY. ! ! 6.3 Assignment. The MUSEUM shall not assign this Agreement without first obtaining the written consent of the CITY, 6.4 Notice. Any notice required to be given under this Agreement or any statute, ordinance, or regulation, shall be effective when PAGE 7 • O a~ ca ON given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: CITY MUSE b City Manager Chair, Board of Trustees City of Denton Denton County Historical Museum 215 E. McKinney P. O. Box 2800 Denton, TX 76201 Denton, TX 76202 6.5 Inarsaent. This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and the MUSEUM and their respective successors and assigns. 6.6 Application of LaMS, All terms, conditions, ane provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 6,7 Zzolusive Agreement, This Agreement contains the entire understanding and constitutes the entire agreement between the parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- standings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- ment, which are not fully expressed herein. The terms and con- ditions of this Agreement shall prevail notwithstanding any variance in this Agreement from the terms and conditions of any other document relating to this transaction or these transactions, 6.6 Duplicate Originals. This Agreement is executed in duplicate originals. 6.9 Headings. The headings and subheadings of the various sea- tions and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. EXECUTED this day of 1995 THE CITY OF DENTON, TEXAS ~ By: 80B CASTLEBEMY, MAYOR PAGE 8 0 ATTESTt APPROVED AS TO LEGAL FORM: ~_'fU,,c~ 4x, ~~C Byt JENNIFER WALTERS, BY= MICHAEL A. BUCEK~ CITY SECRETARY ACTING CITY ATTORNEY OENTON COUNTY HISTORICAL MUSEUM By: crag, Board Of Trustees ATTESTt APPROVED AS TO LEGAL FORM: By: By$ Secretary i i i i i • E~IHPOOC6\K\M}~EU6K PAGE 9 11 -41 Y • . s~, Yf" tt~{:+V tf`^xtiH`C'M Z " e 0 e ; Qn. 0 0 c9_ JA AGREEMENT BETWEEN THE CITY OF DENTON AND u 3 C' THE DENTON COUNTY HISTORICAL FOUNDATION _Q PROVIDING FOR THE PAYMENT AND UBE OF HOTEL TAX REVENUE THIS AGREEMENT made between the City of Denton, Texas, a muni- cipal corporation (the "City"), and the Denton County Historical Foundation, a non-profit corporation incorporated under the laws of the State of Texas (the "Foundation") : WHEREAS, TEX. TAX CODE $ 351.002 authorizes the CITY to levy by ordinance a municipal hotel occupancy tax (01hotel tax") not exceeding seven percent (7%) of the consideration paid by a hotel occupant; and WHEREAS, by Ordinance 86-67, the CITY has provided for the assessment and collection of a municipal hotel occupancy tax in the City of Denton of seven percent (7%); and WHEREAS, TEX. TAX CODE $351.101 (a) (5) authorizes the CITY to use revenue from its municipal hotel occupancy tax to promote tourism and the convention and hotel industry by performing historical restoration and preservation projects or activities or advertising and conducting solicitations and promotional programs to encourage tourists and convention delegates to visit preserved historic sites or museums at or in the immediate vicinity of convention center facilities, or located elsewhere in the munici- pality or its vicinity that would be frequented by tourists, convention delegates, or other visitors to the municipality; and WHEREAS, the FOUNDATION is well equipped to perform those activities through ita Denton Convention and visitors Bureau; and WHEREAS, TEX. TAX CODE 5351.101 (o) authorizes the CITY to delegate by contract with the FOUNDATION as a private organization the management and supervision of programs and activities of the type described hersinabove funded with revenue from the municipal hotel occupancy tax; e NOW, THEREFORE, in consideration of the performance of the mutual covenants and promises contained herein, the CITY and the FOUNDATION agree and contract as follows; I. HOTEL TAX REVENUE PAYMENT TO FOUNDATION 1.1 Consideration. For and in consideration of the activities to { e be performed by the FOUNDATION under this Agreement, the CITY e Q agrees to pay to the FOUNDATION a portion of the hotel tax revenue collected by the CITY at the rates and in the manner specified herein (such payments by the CITY to the FOUNDATION sometimes herein referred to as "the agreed payments" or "hotel tax funds"), 0 Q c~ e 1.2 Amount of Payments to Foundation. J+~ (a) As used in this agreement, the following terms shall have the following specific meanings: lectediand T received by the CITY during any relevant period of time (i.e., fiscal year or fiscal quarter) as municipal hotel occupancy tax at the rate of seven percent (7%) of the price paid for a room in a hotel, pursuant to TEX. TAX CODE 5351.002 and City ordinance 86-87, together with and including any sums of money received by the CITY from taxpayers during any relevant fiscal quarter or calendar month as attorney's fees, court costs, or other expenses of collection of hotel tax, but excluding interest and penalties received by the CITY from taxpayers. (ii) The term ''base payment amount" shall mean an amount of money equal to the total hotel tax revenue collected by the CITY during any relevant period of time (i.e. fiscal year or fiscal quarter), less (1) such amounts incurred during such relevant period of time for costs of collection of hotel taxes from taxpayers or auditing taxpayers for tax payment compli- ance, such collection and auditing costs to include fees paid to attorneys or agents not in the regular employ of the CITY and which attorneys or agents effect collection of the hotel tax from taxpayers or audit such taxpayers; and (2) court costs and expenses incurred in litigation against or auditing of such taxpayers. (b) The CITY shall pay to FOUNDATION an amount of money equal to sixty-nine one hundredths of a percent (.69$) of the base payment amount for the period of. April 1, 1995, through September 30, 1995 or One Thousand Seven Hundred Fifty Dollars ($1,750,00), whichever is less, (c) The CITY shall pay to FOUNDATION an amount of money equal to sixty-nine one hundredths of a percent (.69$) of the base payment amount for the period of October 1, 1995, through September e 300 1996 or Three Thousand Five Hundred Dollars ($3,500.00), which- ever is less. (d) The CITY shall pay to FOUNDATION an amount of money equal to sixty-nine one hundredths of a percent (.69%) of the base payment amount for the period of October 1, 1996, through September. 30, 1997 or Three Thousand Five Hundred Dollars ($3,500.00), which- ever is less. • • 1.3 Dates of Payments to Foundation. (a) The term "quarterly payments" shall mean payments by the CITY to the FOUNDATION of those amounts specified in 11.2 above as PAGE 2 e w • ~ 0v I 5 G , c X150 S I determined by the hotel tax revenue collected by the CITY during any one fiscal quarter during the term of this Agreement, (b) CITY shall pay the FOUNDATION the agreed payments specified in 11.2 above by quarterly paying sixty-nine one hundredths of a percent (.69$) of the base amount or one-fourth (1/4) of Three Thousand Five Hundred Dollars ($3,500,00), whichever is less. Each such quarterly payment shall be paid to the FOUNDATION on or before the forty-fifth (45th) day after the last day of such respective fiscal quarter for which such payment is due. If quarterly financial and performance reports are not received within thirty (30) days of the end of the appliuable quarter, then CITY may withhold the quarterly payment(s) until the appropriate reports are received and approved. (c) The funding of this project in no way commits the CITY to future funding of this program beyond the current contract period. Any future funding is solely the responsibility of the FOUNDATION. (d) It is expressly understood that this contract in no way obligates the General Fund or any other monies or credits of the CITY. II. U8E OF HOTEL TAX REYEMJE BY FOUNDATION 2.1 Use of Funds. For and in consideration of the payment by the CITY to the FOUNDATION of the agreed payments of hotel tax funds specif:ed above, the FOUNDATION agrees to use such hotel tax funds only for the following purposes: (a) advertising and conducting solicitations and promotional programs to attract tourists and convention delegates or regis- trants to the municipality or its vicinity] and (b) historical restoration and preservation projects or activities or advertising and conducting solicitations and promo- tional programs to encourage tourists and convention delegates to visit preserved historic sites or museums; (i) at or in the immediate vicinity of convention center e facilities or visitor information cerhars; or J (ii) located elsewhere in the municipality or its i vicinity that would be frequented by tourists and convention IIII delegates, as authorized by TEX. TAX CODE § 351.101(a) (2)-(5). e 2.2 Administrative Costs. The hotel tax funds receive9 front the CITY by the FOUNDATION may be spent for day-to-day operat!.ons;, sup- plies, salaries, office rental, travel expenses, and other admini- strative costs that are incurred directly in the performr.nue by the PAGE 3 • 0 r.i?. r ~h • 00i a d`b t ub~S f FOUNDATION of those activities specified in 12.1 above and are allowed by TEX. TAX CODE $ 351.101(f). 2.3 Specific Restrictions on Use of Tends. (a) That portion of total administrative costs of the FOUNDATION for which hotel tax funds may be used shall not exceed that portion of the FOUNDATION'S administrative costs actually incurred in conducting the activities specified in 12.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. III. RECORD KEEPING AND REPORTING REQUIREMENTS 3.1 Budget. (a) On or before July 31st of each calendar year during the term of this Agreement, the FOUNDATION shall prepare and submit to the city Manager of the CITY an annual budget for the next ensuing fiscal year of this Agreement for the Denton Convention and Visitors Bureau and any other operation or function of the FOUNDATION in which the hotel tax funds shall be used by the FOUNDATION. This budget shall specifically identify proposed expenditure of hotel tax funds by the FOUNDATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the FOUNDATION any agreed payments or hotel tax funds during any fiscal year of this Agreement unless such budget for such respective fiscal year has been approved in writing by the Denton City Council. (b) The FOUNDATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the FOUNDATION with respect to the hotel tax funds paid by the CITY to the FOUNDATION under this Agreement. The FOUNDATION shall expend hotel tax funds only in the manner and for the purposes specified in S 351.101(a) TEX. TAX CODE and in the budget as approved by the CITY. I 3.2 Separate Accounts, The FOUNDATION shall maintain any hotel tax funds paid to the FOUNDATION by the CITY in a separate account. ® 3.3 Financial Records. The FOUNDATION shall maintain complete and accurate financial records of each expenditure of the hotel tax r • • { funds made by the FOUNDATION and, upon reasonably advance written request of the Denton City Council or the City's Executive Director of Finance or his designee, shall make such financial records available for inspection and review by the Denton City Council or the City's Executive Director of Finance or his designee. PAGE 4 • 0 • w • 34 us~sr FOUNDATION of those activities specified in 12.1 above and are allowed by TEX. TAX CODE $ 351.101(f). 2.3 Specific Restrictions on Use of Funds. (a) That portion of total administrative costs of the FOUNDATION for which hotel tax funds may be used shall not exceed that portion of the FOUNDATION'S administrative costs actually incurred in conducting the activities specified in 12.1 above. (b) Hotel tax funds may not be spent for travel for a person to attend an event or conduct an activity the primary purpose of which is not directly related to the promotion of tourism and the convention and hotel industry or the performance of the person's job in an efficient and professional manner. III. RECORD KEEPING AND REPORTING REQUIRMUMTs 3.1 Budget. (a) On or before July 31st of each calendar year during the term of this Agreement, the FOUNDATION shall prepare and submit to the City Manager of the CITY an annual budget for the next ensuing fiscal year of this Agreement for the Denton Convention and Visitors Bureau and any other operation or function of the FOUNDATION in which the hotel tax funds shall be used by the FOUNDATION. This budget shall specifically identify proposed expenditure of hotel tax funds by the FOUNDATION. In other words, the CITY should be able to audit specifically where the funds in the separate account relating to hotel tax funds will be expended. The CITY shall not pay to the FOUNDATION any agreed payments or hotel fax funds during any fiscal year of this Agreement unless such budget for such respective fiscal year has been approved in writing by the Denton City Council. (b) The FOUNDATION acknowledges that the approval of such budget by the Denton City Council creates a fiduciary duty in the FOUNDATION with respect to the hotel tax funds paid by the CITY to the FOUNDATION under this Agreement. The FOUNDATION shall expend • hotel tax funds only in the manner and for the purposes specified in $ 351.101(a) TEX. TAX CODE and in the budget as approved by the CITY. 3.2 separate Accounts. The FOUNDATION shall maintain any hotni tax funds paid to the FOUNDATION by the CITY in a separate account. • 3.3 Financial Records. The FOUNDATION shall mainta+.n complete and , • accurate financial records of each expenditure of the hotel tax funds made by the FOUNDATION and, upon reasonably advance written request of the Denton City Council or the City's Executive Director of Finance or his designee, shall make such financial records available for inspection and review by the Denton City Council or the City's Executive Director of Finance or his d.aignee. PAGE 4 • • r-r O's- 3.4 C/ CZ C/5 Quarterly Reports. Within thirty days after the end of every quarter, the FOUNDATION shall furnish to the CITY (1) a performance report of the work performed under this Agreement, in the form determined by the City Manager describing the activities performed under this Agreement during that quarter, and (2) n list of the expenditures made with regard to hotel tax funds pursuant to the TUX. TAX CODE ANN. $ 351.301(c) (Vernon 1994). The FOUNDATION shall promptly respond to any request from the city Manager of the CITY for additional information relating to the activities performed under this Agreement. 3.3 Notice of Meetings. The FOUNDATION shall give the city Manager of the CITY reasonable advance written notice of the time and place of general meetings of the Denton County Historical Foundation Board of Directors as well as any other meeting of any constituency of the FOUNDATION at which this Agreement or any matter the subject of this Agreement shall be considered. This provision shall not be deemed to require the FOUNDATION to give notice of any executive session of the Executive Committee of the FOUNDATION. IV. REIMBURSEMENT AND INDEMNIFICATION 4.1 Reimbursement of Foundation for Administrative costs. In the event that this Agreement is terminated pursuant to Section 5.2(a), the CITY agrees to reimburse the FOUNDATION for any and all expenses and costs undertaken by the FOUNDATION in performance of those activities specified in 12.1 above or expenses or costs incurred by the FOUNDATION as described in 12.2 above. The CITY is obligated to reimburse the FOUNDATION for expenses and costs as described in 12.2 above only for the period commencing upon the date notice of termination is given and ending upon the date of termination. Further, this obligation shall be limited to the lesser of the actual expenses and costs incurred by the FOUNDATION during the one hundred eighty day period preceding termination or the agreed payments otherwise due and payable to the FOUNDATION for such period. 4.2 Reimbursement of Foundation for contractual obligations. E the event that this Agreement is terminated pursuant to Section 5. 2 (a) , the C to contractual obligations of reimburse the F0 NDAT ON FOUNDATION undo akeny byd the • FOUNDATION in performance of those services specified in above, conditioned upon such contractual obligations having b12.1 een incurred and entered into in the good faith performance of those services contemplated in 12.1 above, and further conditioned upon such contractual obligations having a term not exceeding the full term of this Agreement. Notwithstanding any provision hereof to the contrary, the obligation of tho CITY to reimburse the FOUNDA- TION or to assume the performance of any contractual obligations of the FOUNDATION for or under any contract entered into by the FOUNDATION as contemplated herein shall not exceed FIVE HUNDRED DOLLARS ($500.00). Such monetary limitation is cumulative of all PAGE 5 • 0 • Q • contractual obligations and shall not be construed as a monetary limitation on a per contract basis. 4.3 Payment of Reimbursement to Tounaation. (a) With respect to expenses and costs incurred by the FOUNDATION for which the CITY is obligated to reimburse the FOUNDATION pursuant to ~14.1 above, the CITY shall pay such reimbursement amount due, if any, to the FOUNDATION on or before the forty-fifth (45th) day after the date of termination of this Agreement. (b) With respect' to contractual obligations undertaken by the FOUNDATION for which the CITY is obligated to reimburse the FOUNDATION as provided in 14.2 above, the CITY shall reimburse the F017NDATION for such monetary obligations required in such contrac- tual obligation in such amounts and at those times such contractual costs and expenses are due and payable according to the terms of such contract limitation set forth in 14.2 above. 4.4 Indemnification. The FOUNDATION agrees to indemnify, hold harmless, and defend the CITY, its officers, agents, and employees from and against any -nd all claims or suits for injuries, damage, loss, or liability of whatever kind or character, arising out of or in connection with the performance by the FOUNDATION or those services contemplated by this Agreement, including all such claims or causes of action based upon common, constitutional or statutory law, or based, in whole or in part, upon allegations of negligent or intentional a;ts of FOUNDATION, its officers, employees, agents, subcontractors, licensees and invitees. V. TERM AND TEMINATION 5.1 Term. The term of this Agreement shall be for two and one- half years, commencing April 1, 1995 and terminating at midnight on September 30, 1997. This term shall be comprised of an Initial period of six (6) months and subsequent two (2) fiscal years, each fiscal year constituting the period from October 1 of a calendar ' year to the next ensuing September 30. j • l 5.2 Termination. (a) This Agreement may be terminated by either party by giving the other party one hundred eighty (180) days advance written notice. • (b) This Agreement shall automatically terminate upon the r • occurrence of any of the following events; (i) The termination of the corporate existence of the FOUNDATION; PAGE 6 • w • (ii) The insolvency of the FOUNDATION, the filing of a / petition in bankruptcy, either voluntarily or involuntarily, or and assignment by the FOUNDATION for the benefit of creditors; (iii) The continuation of a breach of any of the terms or conditions of this Agreement by either the CITY or the FOUNDATION for more than thirty (30) days after written notice of such breach is given to the breaching party by the other party; or (iv) The failure of the FOUNDATION to submit a financial report which complies with the recording procedures required herein and generally accepted accounting principles prior to the beginning of the next contract term. VI. GENERAL PROVISIONS 6.1 Subcontract for Performance of services. Nothing in this Agreement shall prohibit, nor be construed to prohibit, the agree- ment by the FOUNDATION with another private entity, person, or organization for the performance of those services described in 12.1 above. In the event that the FOUNDATION enters into any arrangement, contractual or otherwise, with such other entity, person or organization, the FOUNDATION shall cause such other entity, person, or organization to adhere to, conform to, and be subject to all provisions, terms, and conditions of this Agreement and to TEX. TAX CODE Chap. 351, including reporting requirement,, separate funds maintenance, and limitations and prohibitions pertaining to expenditure of the agreed payments and hotel tax funds. 6.2 Independent Contractor, The FOUNDATION shall operate as an independent contractor as to all services to be performed under this Agreement and not as an officer, agent, servant, or employee of the CITY. The FOUNDATION shall have exclusive control of its operations and performance of services hereunder, and such persons, entities, or organizations performing the same and the FOUNDATION shall be solely responsible for the acts and omissions of its directors, officers, employees, agents, and subcontractors. The • FOUNDATION shall not be considered a partner or joint venturer with the CITY, nor shall the FOUNDATION be considered nor in any manner hold itself out as an agent or official representative of the CITY. 6.3 Assignment. The FOUNDATION shall not assign this Agreement without first obtaining the written consent of the CITY. • • a or6.4anyNostatutetice, required or regula ion, shall be effective when given in writing and deposited in the United States mail, certified mail, return receipt requested, or by hand-delivery, addressed to the respective parties as follows: PAGE 7 • - sa • ~o ~ sI C1TY FOUNDATIOH t City Manager Chair, Board of Trustees City of Denton Denton County Historical Foundation 215 E. McKinney P. 0. Box 2184 Denton, TX 76201 Denton, TX 76202 6.S xnurement, This Agreement and each provision hereof, and each and every right, duty, obligation, and liability set forth herein shall be binding upon and inure to the benefit and obligation of the CITY and th6 FOUNDATION and their respective successors and assigns. 6.6 Application of Laws. All terms, conditions, and provisions of this Agreement are subject to all applicable federal laws, state laws, the Charter of the City of Denton, all ordinances passed pursuant thereto, and all judicial determinations relative thereto. 6.7 nzclusive Agreement. This Agreement contai) s the entire understanding and constitutes the entire agreeme_ . between th- parties hereto concerning the subject matter contained herein. There are no representations, agreements, arrangements, or under- standings, oral or written, express or implied, between or among the parties hereto, relating to the subject matter of this agree- ment, which are not fully expressed herein. The terms and con- ditions of this Agreement shall prevail notwithstanding anv variance in this Agreement from the terms and conditions of any other document relating to this transaction or these tr;isactions. 6.6 Duplicate Originals. This Agreement is executed in duplicate originals. 6.9 Readings. The headings and subheadings of the various sec- tions and paragraphs of this Agreement are inserted merely for the purpose of convenience and do not express or imply any limitation, definition, or extension of the specific terms of the section and paragraph so designated. EXECUTED this day of 1995. • THE CITY OF DENTON, TEXAS Bys BOB CASTLEBERRY, MAYOR PAGE 8 rj~~~i~xt ~~`.~1 ~ ~~.l i~,'CF1 ~+J~•~avh ~~t~~1 .~C~'~i~~• i ATTEST: APPROVED AS TO LEGAL FORM: By: Byiclc cc JENNIFER WALTERS, MICHAEL A. B CEY, CITY SECRETARY ACTING CITY ATTORNEY DENTON COUNTY HISTORICAL FOUNDATION By: Chair, Board of Trustees ATTEST: APPROVED AS TO LEGAL .FORM: By: By: Secretary cretary e o r o 0 Es\WPD0t8\K\F0MAtl0N.K PAGE 9 7" I&A • c.0 5 C DENTON pv 6 Q00 n [!Q 0 D °D°oo E oo° " opo ti o ~D a EZ3 app T o ~ ~O° Op0 N , po ~ °aoo~ano~o ~ a CITY COUNCIL 0 'r t ~endaNc " ~ 4geodaile 5 CITY Of DENTON, TEIIAS MUNICIPAL BUILDING / 216 E MCKINNEY / DENTON, TEXAS 76201 CITY COUNCIL IMPORT TOs Mayor and Members of the City Council PROMi Lloyd V. Harrell, City Manager DATWs February 22, 1995 SUWZCTi CABLE TV ZMA09NCY OViRRIDZ Ti4tl~ Mons necessary. ~4'fD8Y ~ The Cable TV Emergency Override System is one component of our efforts to alert the citirene of Denton in the case of a wide-sprsad emergency. AACKOROUNDA The franchise agreement between the City and Sammons requires Sammons to provide the City with an amsrgenoy Override Capability to broadcast an emergenoy message over the audio portion of all the Cable TV channels. This system has been installed at our emergency dispatch center at the Police Department and is currently operational. A set of guidelines for using the system has preped and is byothvid e City Manager the DeputyiCity Xan gero the Po beenlice Carhi•f approved the Fire Chief. A copy has been supplied to Sammons. PROORAMA. DEPARTMENTA OR GROUPS yPZCTED, Denton citissns who subscribe to Cable TV, Sammons, Police Department dispatch supervisor, Public Information Office. FYSCAI. IM_=s None. RE8 LILLY SUSHITTEDs 4 O ~ ioyd V, a eel Pro ad by, City Manager Richard information ~ Public Information Officer App vad by, at) APhAsowa! rtugal t to t he e City Ma ager AM0IPEE 8171666.8200 D/fW METRO 434.2629 4 J o ~~!L 7 • SECTION XXIII. EMERGENCY OVERRIDE. Grantee shall provide and maintain the equipment necessary for the Cizy to maintain an emergency alert system to override, by smote control, the audio and/or video signal to transmit a message regarding a bona fide emergency over all cable video channels simultaneously. Grantee shall designate a channel which will be used for emergency broadcasts. Grantee shall provide a remote data terminal, telephone lines, modems, cables and any other items needed to adequately supply this service. Such equipment shall be maintained at a location designated by City. SECTION XXIV. PROGRAMMING MIX. (a) Grantee agrees to provide programming that maintains the mix of distinct and separate channels that is presently provided { and listed in Exhibit 4. In accordance with the Cable Act, the Grantee shall, for the term of this Agreement, maintain the mix, quality and level of programming set forth in Exh.Sit (b) In addition to the programming mix indicated above, Grantee will use the upgraded system to provide a wide range and assortment of optional programming services. Grantee shall provide, at a minimum, the following additional services: (1) Provision of an additional full channel space for films and ctiltural entertainment programming (2) Provision of an additional full channel space for children's entertainment programming (3) Addition of a full channel space for documentary, public broadcasting programming (4) Addition of a full channel space devoted to weather information service (5) Addition of a Pay-Per-View Channel • (c) Such services shall be provided not later than November 1, 1994. Grantee agrees to produce a minimum of 400 hours of local origination programming annually. One hundred (100? hours of such programming may be supplied from other Sammons local origination sources. SECTION XXV. FORCE MAJ'EURE. In the event the Grantee's diligent performance of any of the terms, conditions, obligations or requirements of this Agreement is prevented or impaired due to any cause beyond its reasonable PAGE 17 • w CABLE TV EMERGENCY OVERRIDE "U The Cable TV Emergency Override System allows a voice message to be transmitted over Denton cable television stations. When activated, the voice message will override the audio portion of any current cable TV programming. This system shall only be activated in situations where a major wide-apread community emergency exists or is imminent. Examples of this includes - a sighted tornado in, or approaching, the city - wide-spread flooding - a major spill of, or other possible exposure to, hazardous materialsr - a major air or other transportation disaster within the city! - a major civil disturbance such as rioting or a jail breakf - wide-spread fire - wide-spread utility emergencies such as power or water interruptions, (Theme examples are not intended to be exhaustive or all-inclusive, other situations may arias which would justify activation of the system.( The system should only be activated upon receiving a report from a competent authority such as police or fire personnel, a utility department director or his designee, or a skywatch weather volunteer who is a member of the Denton Amateur AadLo Club. Information received from a citizen should be confirmed by a competent authority before the Emergency override System in activated, • The Cable TV Emergency override System may only be activated by the Police 1 Department Dispatch Supervisor or his designee. Police Chief Mike Jet or hire Chief John Cook, depending on the nature of the emergency, and City Manager Lloyd • Harrell should be notified prior to, or immediately after, activation of the • Emergency Override System. If any of them is not available, their designees or the next in line in the chain of command must be notified. "idea • PAN CABLE TV EMERGENCY OVERRIDE - PAGE 2 b~ 171.. a .~Y:,-~l S of Aocets to the system is provided through the dedicated telephone located on the v Dispatch supervisorls console. The system is activated by lifting the telephone receiver and when the receiver is lifted, an intermittent ringing ■ovnd will be heard as if a phone number has been dialed. When the ringing stops, the dispatch supervisor NUST_ pt~U 613. As soon as this three-digit access code has been dialed, the supervisor may proceed to state the emergency massage When the message is finished, the telephone receiver should be returned to the phone cradle. Any announcement made over the system shouldi - identify the source of the message (i.e. the City of Denton emergency communications section(] - state that the message contains important emergency information - state the emergency information, including any specific instructions to citizens such as taking shelter, location of emergency shelters, areas of the city to avoid or evacuate, safe routes to use, etc.] - state that further information will be broadcast as it becomes available. The message should be broadcast several time during the emergency situation. The message should also include a statement that additional information will be provided once the emergency situation has ended. A sample message, included here oily as an example, might bei O "Attention Denton citizens. The City of Denton emergency communications section in issuing the following emergency information. A tornado has been sighted on ' the ground at the southwest corner of the City, near the university oz North Texas gol~; course. The tornado is moving in a generally northeast direction. • Please proceed to immediately take shelter. Do not go outside. Do not stand • • near windows. It is best to seek shelter in interior hallways, in an interior bathroom or closet, or in a bathtub under a mattress. More information will be w e CABLE TV EMERGENCY OVERRIDE 'PAh-13, 2 ja~p provided as it becomes available.- (Repeat message several times,) Mother sample massage, included here only a an example, might bat "Attention Denton Citizens. The City of Denton emergency communications section is issuing the following emergency information. A truck carrying caustic chemicals has overturned at the intersection of Carroll Boulevard and University Drive, A cloud of potentially dangerous gas is dri^ting north from the site of the accident. People living or working in the area north of university Drive, between Locust and Hinkle, should remain indoors until further notice, University Drive has been closed between Locust and Hinkle, Carroll Boulevard has been closed from Westway to Northridge, Elm, Bolivar, Hinkle, Strata, Mimosa, and Magnolia streets have been closed to incoming traffic. please avoid this area and choose alternate routes if you must travel in this area. Further information will be provided as it becomes available. (Repeat message several times.) Once the emergency situation has ended, broadcast a message, several times stating that the emergency is over, and citizens can resume their normal activities. Contact Chief Jet, Chief Cook, and the City Manager - or their designees - to let them know that the situation has abated and that citizens have been instructed that they may resume their normal activities. • Testing, This system shall be tested once per month, on the first Monday of each month, between the hours of 2100 a.m. and 4100 a.m, several police officers who are at the DMO shall tune in to various cha'mele to monitor the test, The • ca CABLE TV EM - ~ ~ ERGENCY OVERRIDE PAGE .4 q Dispatch Supervisor should activate the system and announorn 6 "This is a test of the City of Denton Cable TV Emergency Override System. This is only a test." After the announcement, the telephone receiver should be returned to the telephone cradle. It the announcement is not heard over all of the monitored channels, the Dispatch Supervisor should notify the Cable TV company and the City Public rnformation Officer during normal business hours the following day. i a AAA02TB3 • • ~v Jiy ~4" r iyt~y_y •~t l..l~ ~~r~tkia v ~r~$~s~~l~r w e ca • r DENTON I oooo0 aooooo000 o" °9 4, 00°A, OO Q a cz) 0 pp0 00~0ToN ,~~~`p00 °~Qaa~~aooo°°° CITY e COUNCIL r e o • w • HANDOUT TO COUNCIL 2-28-96 © Bmw C. wer 382 0 1'X*NPg Corljmw Rooms 1,243 sf Q AddGio W Cmf mw Amu 2,863 $f phw 1 (4S8 PAase 11 PAan LU (1,590 I~ xtaAex ( 94211 P1wte 1 C3 Low/Cfrt "ll 2,433 ( (458 C1 Sumer 1,365 Jl phw 11 n Tolku 1,065 (}sue tfJ 4293 if e 0 e • Phan 111 (815 r, r r ~ r ~ 1 1 1 1 ~ r e 1 O e 1 1 r, o , o r r 1 r r ~ X.Jkht11 ~ r Lo i~.._.: ......1_.1...1._. Drop-Off r7i F, of Denton J Op M4 r Gi f d lNorw MnYfryp .rA°ot 4 Me[did t: • HANDOUT TO COUNCIL 2-2S-95 Cl Emu Center (open to below) Office 1,277 sf Lobby /Circulation 1,632 sf D Storage 0 ssf fog~ng'walking rrack 5,267 sf © Toilets 150 sf 9,326 Line of Old Me=mnitne , a 1 Line ofproposed ' ' • Mezzanine ' I I t •1 I I. 0 1 I• 1 I 5:. I'1{yl • el ~ r !h' 1 mtOC ^ Ux sr a C Crean - K n Br C ModJjy M[ Inkrior Ara at SarpporY Spry ..n.•...ru•...... t ~.p1p' 'y p rY • ~ ~ t 1 ~l~ly~ ~t~~~ ~~7 ~ ~1 ! ' qJ.~E ~ it bi Y r~~ • • • a o a K a • c x. a a a r3 a s zxr 40 4 CCU y s i f • O. / OF KEY FACTORS LOCATION DECISION-MAKING PROCESS 4 WORKSTEP TWO z A REVIEW OF CRITICAL BASELINE STRENGTHS AND WEAKNESSES POR ECONOMIC DEVELOPMENT f Prepared foc ' 4 wow YA~ :~tP F ry f r H 1 • Presented by: PHH FAME Cmml s NDVWA r 1194 ~~+~MO~h~,rdedy~wrbYardMnlr,dn`ynd~ r~d~, ® IwdAo pkmlwbn. ■NIa~ ~Mw~AfwrA d $ s • a+ • i x TABLE OF CONTENT18 II Key ~ear~ qi V>Ie I.ac>~lbn.C~ect~ri~nq ~ s III. ~7~1~~ Y...Y~i M~M.!YN P f ~ 1 IV. • 06Wed F Reperdl►wq ~r We~k►; ~ gpIM~rIMM►1k°11~~►'M~p14'~'i►"~' f II i • • • n t i . j t Se i l i INTRODUCTION AND BACKGROUND, r ~ a r `s f I • n `i i • O • to • • . 1'.y:.. l t q!. 'J;ij1 .I,. ..'ri$:F hk }t@y `}5 qj '•j~',Y, t._, fl` 1 ff t_, g. _.k tt--A E-Z aM am an 1WW M 1 Introduction and Background _ low The Denton Chamber of Commerce (Chamber) and the City of Denton have retained f Hli Fantus Consulting to evaluate both Ocnton's competitive position for attracting and retaining businesses and its marketing and retention programs, and to identify possible strategies for enhancing Denton's eflorts, Our specific mission in this project includes: ■ Identification of key factors in the typical corporate location decision-making process ■ Analysis of Denton's existing situation, reviewing baseline strengths and weaknesses, and identification of economic development opportunities and threats • Senchmarking of Denton's critical success factors for economic development and comparing Denton to key competitor locations w Specific assessment of Denton's existing marketing and retention programs v Identification of possible economic development strategies for Denton and related programmatic and • operational initiatives In,rnilu'IOkd CUN F IU[ N I IAI. t' Pllll Vilnius Consulting • • • INTEi1jMIEMIS NflO IM IrENTIN I Ccball Manufacturing Board of Realms Bob Crouch Hurd Pelnoleum Corporalron Donald Dillard Russell Newman Manufacturing Denlon Publishing Company Hill F'allenson Jim Parker Joslens GTE telephone Cenhal Aiaa Melvin Willis Gosseh Cuslom Homes Fred Gossell Boeing Aerospace & Electronics Denton Independenl School Dislncl Di Albed Thomas HAvood Developmenl Corp Ronald WMIa f PelorINll Molors Company Fast Stale Bank Phil Bronktersl Bill Ulten Fad 9&li (ItleT Sr Texas Woman's Urkversity Dr DerTell W Bulls City of Denton, Maya Bob Castleberry Council Member Eulino Brock Council Member Jack Miller Cify Manage Lloyd Hanoll Municipal Utilities Duecla Bob Nelson Planking Director Frank Robbns LApadment of Econonkc Develop eol Ii da ROM Depadmenl of Ecaartkc D weelopnerd Belly McKean Hayes, Colley B Be" Roctod Hayes Texas Bank JON Taylor Urxversiy of Nodh Texas Fred Pole • Keep Donlon Beauldul Cecille Carson Denlon Chanbef of Commorce Chuck Car enlw Ken Hadick j a • I r r r t r D r D f r i r f r f r f t T r~ r~ r f F 1' • • • Inlroductlon end Background During September and October, 1994, PHI II FantLIS Consul ling conducted field interviews in the Denton area to gather primary J information about current economic trends, business climate strengths and weaknesses, potential opportunities and threats, and E current marketing and retention efforts. Interviews were arranged with the assistance of the Chamber staff and included the following categories of interviewee I ■ Key employers with significant operations in manufacturing and services i • Hlected and professional public sector leaders ■ Area professionals in development, real estate, mass media, financial services, and higher education • Providers of utility services to business • Community leaders Our analysis further relies on a variety of published sources and PI-1111 F'antus Consulting's proprietary databases covering factors critical to the successful location and expansion of business investment Finally, our analysis is also informed by a review of • ove -all economic and employment trends at the local and national levels, Phil I Fantlls Cousulting's approach is based on the methodology that a typical company would use in the course of a typical location evaluation process ~ I • ~i Uenlan Noiembei 1994 C nNfl nE NI IAI. • Z- P1111 Fmntus ConsutNng • O • w • • r - t . _ t tr i' . t t..'i; t : s U1 O7Z VV UR UN tlf~ M EIntroduction and Background mm~$F~l Our findings from the project will be contained in two separate documents: ■ This report addresses the firs) two Worksteps of the project, which were the subject of the PfIH Fantus Consulting progress briefing held in Denton on October 21, 1994. Specifically, we have 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 provided a benchmarking analysis comparing Denton to competitor locations nationally and in the region. a1 The final report will assess Denton's existing marketing and retention programs and identify economic development strategies and associated programmatic and operational initiatives • O O Nuaembw 1994 CONFIDENTIAL A- P1111 Fantus Consulting • c~ • ~r•i. <N ~ MV ~ ':Y ~,AI~..n'clef f,: ~..i. - : ~ n. n y . ~ irN r 1 'M r7IA 8171's W-V ® Introduclion and Background PNN FUM ONIISNLM US 0M 16 MU IF SITE LW1W DN'EN I NO PAY lATANASE NON TIIN T1:1T a APP M Ti OUT PNIMATE AM MW SESTSN M i s This experience is applied to our consulting work with communities and economic development organisations throughout the country r Denton's economic development C5Fs, strengths, weaknesses, strategic opportunities, and strategic threats have been evaluated from the perspective of a site seeker to ensure objectivity and insightful conclusions and, ultimately, to provide recommendations for improving economic development efforts ■ PHFI Fanlus Consulting has a unique understanding of the site location process and has completed over 8,000 site location projects I Denlon November 1994 CONFIDENTIAL •4• P11 111 Fami"Consl+MINK • ca 0 , r sz + ' E` f II• KEY FACTORS IN THE LOCATION DECISION-MAKING PROCESS" E d R d# ~r s E i ~'r t( r t 3 FE E 1' iS a +,j>``~',ffcj ~'Ei b s ~p 6S be 9A is .s a',s 8~E7E " rk. r G£ x " r e ! 3 r d I t E y~ 1 7 K c t: 3 r s a,w3 a'N A N it 7 ~ 'xth } r v £r ~f r 2 1 n• ,.o ~ r7 ~ t ~ytrA~,^ ~i ti~~~ • O • w • EVOLUTION OF A DECISION: FACILITY INVESTMENT SCREENING PROCESS Macro Screen Multi-State andlor.Multl -Country IYP.IQALCIEI.ENIIQNFAQIQR5 IYPIQALATINAcIIQNtAM 05 tLWNm[ (w*0 Mnl S1 l LwN SIIN HVNNLL cwmm Impf(If EANrMered SfNea/COaI11rNf • SINE 9r11"4Wt [M114 CWNNCWM - 9114 RVt[wt1 C"AW Cof Wf AMI r0 SeleCled "Knock 011r" ' [anplnf SgLF. RMVIMMrn 4 Nw • Ca Wnf 5wk RWprl~1 wNNp4 a! Int SUN k" N HN 9141 LMI Factors mgaR[I "We p~o1m1f1 4 mmN a LempNlal pvamh as manM a L'MpWlfyt Inr~Inmal4l Rl"11 IIMOntMn41 g1VM l1VLYl W/IN IpKM ufNM y1M~N anLMIM art4Glh' NMiN NIMM 1vNNINIy Mwoftcro Screen • Select MSA's, Couniks, CommunNles In MUNI•StsWMuItJ•Coudv"Areas IYl I AL.REI1 NIIQN FACT98S I2IQALAITJIAC_(101ACI & Al,a "ntpl • CLWMmn' Dt"WA n1 $W * ONMry uWN a mlpnauNl Low r NWW impt ENmArarad JWSAsl r 11nM rn.Lpn.MM , dM N A p"wW C•NW ' HuM~ny Ar111Wh .Venn fnmtnr N CaaaRKWO a doe do • AI 9Nr[ f . stay Arwwwr $6Wf*d "Knock our" ' IloanryYUWuafLYl RIM , M $iP * Facras 1 ' OR[W $pNf 1rM14N'L &rIMNn'1NNinl RWM 1r11WLNy d Sperp[ InLfMMI Ua1 5gc1 Ar11..I ' An11M11f M SAn hL IM WMnfI 3 • Micro Screen Seml•Flnailst Communities and SNes • Inv*w" on-aNe vislb TYNII:ALAEIENIIQNArIgk&IJQN.fACTQRS E eQCor nNkLr/ ' DI A W can $No$ We to SeArcrad sp«r[ slus„Wanp >tumNWn "Knock Our' Facton w.m a u1 ® (*W"l1W VNla CWU❑Ir140 • llld WnIpNMM RenIML • IMUltrw lwf blaH • lpnm"nIr froNrlla~ I nRr,r cd n•r miseL Inuhsl f,®Rnuullies • o • C) • • Key Faclors in the Location Decision-Making Process INS ASSESSMENT IF DENTIN REFLECTS THE INVESTMENT 1EIISINI-MNO SCREE IINQ Pole ESS TYPICAH EM!'1. M BY SITE-SEMNG FIRMS_.. ■ The template reflects a screening process by which site-seeking firms sequentially eliminate prospective j locations based on their failure to meet selection criteria at each level ■ The process typically moves through various screening levels ♦ Macro level multi-state arid/or multi-country ♦ Macro/micro level(s) selected cities/counties in remaining states/couniries ♦ Micro level(s) firlalisl/semi•tinalist communities in selected states/countries r • Almost always involves community visitation i • Deals with specific sites/buildings ■ Many factors track through the various screening levels • Levels of detail usually become more specific as one moves from macro to micro screening j • ♦ For example, a site-seeking company might follow the following scenarios during screening: • At the macro level, imaf;e might be of Texas' state business climate, then image of an MSA { based on a preliminary visit for the macro/micro level, followed by image projected by a specific site in a finalist community t ® . M Mown THE C/NTEIIi 0 W= WE ASSESS mum ECINIMIC KKLWWK MTEI= • ~ CONI IOk NHAI. r' I'Iltl M'enhlf Cunsutrin~ • • r TYPICAL. LOCATION METHODOLOGY J rt"Meeerml amteda Cperdaw J Red asw (sco melts J LA a ttskd indae J AwMbWy AeloA My . Qjft J Tor dmWe . Cud J lepd redrtc4a e m Ndcky J labahrerrpeme t rddwm Rfaoomrrnd CwewdYaaler Furie rdiV*&PA*m* FW&wt ff Y coxes Ddaled A end Rea mw a • T Fne to R"ak lmminDq* i Reodrnsn:lNV b i" CaneeriNYNrpdWiar Ucabw Deddan • l • s~ • t3 • • N I fi w M w . i'dz IMF y M--.Kel Factors in the Location Decision-Makin Pmess ~ CNM ASSESSMENT OF DENTIN _RULECTS THE INVESTMENT DECISINN-MAIIIMS SCNEENINB 11@CESS_ TYPICALLY EMMIYED DY. SITE-EEEIUMNI N1wMS ICDNTsI ♦ Incentives screening might start as a perception of whether the Stale of'fexas plays the "incentive game," followed during the mid stages of screening by consideration ofwhal incentives might be available at the state/county level, and finally consideration of actual incentive amounts determined through state/community negotiations ■ f luwever, the factors are often viewed from different perspectives ♦ For example, existing corporate citizens (relention/expansion candidates) are able to view business climate from an objective perspective, . ♦ While outside firms (attraction candidates) may rely on subjective, preconceived ideas about business climate to make their location decisions ■ At the micro level of screening, attraction candidate companies will often eliminate a city from competition • ♦ Ildsed on subjective inputs ♦ Befure positive business climate features are considered and before actual contact is made with city j cconomic developers i ANN MNMIDES THE CNMTE>tT M MI WE AS= =I01'i ECI~ IIE M'MT MIENTIIAL " Nnvernbr i 1$I94 CONFIDE N I IAL 7- PIIII Fantus Consulting 1 • e r p i,..:. p ..r., t~ S r_. ■ n: Y . Y...M IY ilb X16U ice/ low ~f ® Key Faclols in the Location Decision-Mating Process ---1 Ilk ASSESSMENT i~ EIITW I TS THE INYESTMUR NEW" SCROM TrMm EMK l SM__Sm NW, (CA 1 r The economic development furction is a key location determinant source: ♦ It serves as a "window into the city" and is often the first contact point for outside, site-seeking compn;,;es ♦ It serve as the principal avenue ol'redress for in-city firms having business rlimate-related problems s e e PN/MNEi TE NOW N( WE ASSESS M 111 ECMIEC MMVMT Pon= :e r,,l~~,nl~ Ikon CONFIDENtIAL t{ P1111 Famlus Consulting ! Q • to e • a RELATIVE PROPORTION OF TYPICAL FACILITY VARIABLE OPERATING COST"' Offkf FKltlly1h M{nt,locim" FuI1Ny IY 1 I Ns 46a N% •Ary EMM 1 ll% •RNIE4Yi' Rf 4ah RlwM I ~M Y~rgr~ ilr~ Rr~A in RoY IY W on MfmN w•r ~Fe~ ANwrM lrpc El OrVRMN MNQua Mru wM binnYlglrvR l"OC~Yn{IUrrLlOnf ANUIIYf NLYKttd NAM'EM IRUYEVAIr IOrM R{f) • 11 tW~1 ~y1NRrME. IrN IN'YGOrtW~~(rNNIWNY~11MRr1if1n1 Drlld/rp I ' f f f I I ( f I ~ i ~ i I f ~ t I I ~ i' I t ~ i I II e ~ } • rw i 0 Y 1 A it Key Factors in the Location Decision-Making Process 111 `A$$U$ EIR FICU iN THE MA NSIMCM MW M 01ti YELS Of 1NE sRE ~EEI~iMa iECM N-Rgm Pima WIN "T_~ THE MACH LEMEI ■ Most location prospects in Denton will emerge from a screening process which first identifies Texas and/or the Melroplex or Denton County as a suitable project venue as Our analysis concentrates on location criteria examined primarily during the latter stages of the location screening process: ♦ Factors considered to be part of the Dallas MSA business climate ♦ Factors considered lobe part of local business climate Factors at these levels are more likely to be conlrollable by local forces f a State level factors also are considered, but they are much less subject to local remedial action a Our analysis considers impacts on manufacturing and while-collar types of development, which are two very different processes, as seen in the facer tH . CONI IDENI IAL Pill f Fa,r]us Consulting • 0 , • ca • r ,f 1 • CRITICAL SUCCESS FACTORS (C-SFs) 6 r ti f it Ile u ~p F + t ~ - I~ a f t N e • c S _ 3 t" z E 41 dt Q ~ x; • • cu • r I DENTON S CRITICAI SUCCESS FACTORS Labor Market Conditions Image ■ General labor availability • Economic development program ■ Labor quality/productivity ■ Regulatory environment r Labor costs (wages, fringe benefits) n Business awareness • Labor management relations r Taxes Infrastructure Location ■ Transportation a For manufacturing ■ Sites/buildings ■ For non-manucturin g • Utilities • Air quality t i Quality of Life ■ Availability and cost of housing ■ Education • ■ Recreation and culture it I , • 0 Denlon's Critical Success Factors CSFs a With the location screening process discussed previousl, in mind, P11H Fantus Consulting determined that the following were the relevant competitiveness factota on which our analysis of strengths, weaknesse,i, strategic opportunities, and strategic threats should Ibcus. These are among the primary criteria bring used by location decision-makers to screen between competing candidates for investment: • Labor market conditions • infrastructure ♦ Image Location • Quality of iil' f a For this Report, we have identified competitor locations inside and outside of Texas that have similar profiles to Denton and to which Denton can usefully and reasonably be compared. These comparisons are highlighted in the graphics throughout the report , j 0 A CONhOENPAL li- PIM Fantus Consuhing 0 r q ti • na • • i KEY LABOR MARKET CONDITIONS Labor Availability Labor Quality/Productivity Labor Costs Labor/Management Relations t PHH FANTUS CONSULTING MIGHT onsulting location projects. Decision-making factors in the labor market category cover a [environment, abor market factors have played a role in every one of more than 8,000 PHH Fantus oad range: labor availability, skills, educational background, labor management relations, ages and fringe benefits, productivity, industry mix, absenteeism, and turnover the not too distant past, wages and labor/management issues tended to dominate the cision-making equation. At the present time, and for the foreseeable future, other factors • sume precedence Labor force skills and educational background which will allow a worker function effectively in the plant or office of the future can be considered the number orie cation determinant Emerging factors, such as the ability to functio^ in a team manufacturing are becoming increasingly important. 1 I t I t ~ i i I ( f I I I t ~ ~ ~ I ~ I E • O • a ■ a x 6 a 6 1 t r f 1 ..1 1 y r I 1: -3, is $ M4 UM Denton's Critical Success Factors (CSFs) u mun wen r c AN MW _W W M/MTK FMMTW FNS ~ STM CSAM#Ti11rE "SMS ■ All of the employers interviewed stressed the high quality of the Denton area workforce and, most prominently, the strong work ethic displayed ■ No interviewees expressed any issue with labor costs, although a comparative analysis of salaries at the county level indicates that Denton's manufacturing labor costs, exactly the national average, will not be a marketable, competitive advantage ■ l.nborlmanagement relations are solid--an analysis of MLRB data indicates very limited union activity and no employer interviewed indicated a significant problem with unions j ■ No employers dominate the local employment picture; the public, finance, service, and manufacturing sectors are all reasonably well-represented in the Dentonjob market ; I a s • 1 CON F I DE NI IAL 12- P1111 Fantua Consulting • ~a • • LABOR AVAILASIUTY PHH FANTUS CONSULTING INSIGHT Faaroahhas vailability is one of the most fundamental factors in a labor market assessment. A typical measure availability is unemployment rates and the number of people registered with employment security h these measures can provide employers with an estimate of of the magnitude of availability, these ecessarily all of the factors that should be considered In addition to these factors, PHH Fantus ng analyzes other data and interviews local employers e location selection process is often one of elimination, areas with an average unemployment rate it ow 3% have a higher risk of being eliminated from further consideration On the other hand, if an an unusually high unemploymenl rate {above 10%), the community mus t address concerns g economic stability of the area, business image, and crime rates 1 EMPIRICAL EVIDENCE CURRENT EMPLOYMENT BY SECTOR (by County)' l Total Clvlllan Professional, Precision Overafl, labor availability in Denton was rated highly by interviewees Employment Man real, cfall and f1on Technical f%I Repair a ` No need to advertise at all Our own employees do recruiting for us" [tepau Ixl 'We never advertise in Dallas papers because most of our recruits come rKane, X 42,133 28 1 13 0 from Denton ar the surrounding small communities, especially north of 982,310 32 97 lows ' • 58,380 38 9 8 2 We would riot be able to process all of the applications if we advertised X 153,373 for positions " J7,2 9.1 145,948 431 8.2 I We use a mostly rural workforce, only executives lend to reverse TN 41,207 commule from the Dallas direction " 38 8 9.2 180,944 29 12 7 We would like 14) see more, female appiicanls for all kinds of fxrsilrons Riverside, CA O because Ibey lend to be the most reliable' 488,257 28 1 14 4 • Clarke. GA 40,991 37 7 5 ~ i Latimer, CO 94,102 368 t04 '$oIPCC II-0 County Huvuwss fbNerns If f r r I t t { r t t I r 1 f. 1;, • b 0 w • • li fi tr fr r fr of +r r r r Q 1 7 z ai z z I ® Denton's Cnlical Success Faclms (CSFsI EMP18YER$_IN IENTIN NAVE A NESS T~ IIIU 0I1008 UNNE Of LAWN IM M WUNIN M INITSIIE TU METRIPLOI ■ Due to the availability ofa strong worklbrce in Denton and the surrounding rural areas, most Denton employers have not had to tap the Dallas wolkfoorce to the extent that is possible with reverse commuting i ■ Urban, suburban, and Waal labor are readily available ■ As compared with competitor locations, Denton has a slightly higher percentage of white-collar employees in the worklbrce I ■ Most employers interviewed do not have to incur the cost of advertising to rill positions because of the abundant labor supply and availability ■ 't'here is some concern, especially among smaller businesses that do not offer wages at the higher-end • of the pay scale, that there may not be a sufficient unskilled workforce to meet the rwed4 of some local E basic employers who are finding it diRTcult to compete for labor with restaurants and other service establishments 'T'hese employers may begin recruiting more university students 1 hnvuinpw PJ~11 COW IDE N I IAt. PHII Fantus Consulting 0 0 r fi LABOR QUALITY PHH FANTUS CONSULTING INSIGHT As lobs in the United Stales become increasingly higher skilled, labor quality lactors become mare 1 critical Truly unskilled lobs in both manufacturing and office environments are nearly non-exrslenl Usually even the unskilled yobs require some slum and education 150 9000 is being adapted by many i companies and enipbasizes labor educalion and trainability Ttto companies with prenanly unskilled r labor and low wage slruclures are, in many cases, leaving the United States PHH Fantus Consulting closely investigates labor quality for companies by analyzing statistics, interviewing educational and training leaders as rl, most importantly, Interviewing employers 11 Prospective companies would rather pay slightly more for a high quality work force than locate uI a lower labor cost area that has a less qualified work force Training quality and attentiveness to i companies training needs is critical and is often part of the incentives that companies negotiate for locating in an area i c Empirical Evidence EDUCATIONAL ATTAINMENT OF CIVILIAN LABOR FORCE t (by County) Employers in Donlon note that. for the most part, the work ethic N.S. Grad ` Pion HS. Grad B,A38 S. only Graduate Degree of the labor force in the area is exce[lenl Because there Is so - - ` rnuch labor available, employers are able to select the best Grayson, TX 29% 20% 10% 6% 1 candidates Dallas, TX 23% 21% 19% >7% 'Denton offers an outstanding woo klorce There is a strong Brazos. TX 19710 14% 18% 14% 0 ethic, and very low turnover " F. ENTON, TX 21% 12% 22% 8% Even most of our cfencal slalf have a higher education degree " olhn, TX 18% 11% 28% 11% Wit iarnson, TN 23% 15% 24% 12% -These people here are the salt of the earth ' Kane, IL 28°h 21% 15% 7% 'Hard working labor force, especially north of the Lake. Rural Riverside, CA 25% 24% 10% 5% ® people lump at the chance to have a steady job with good Clarke, GA 21% 14% 19% 18% benehls They learn well, are energetic, and are alive with 0 pride Lormler, CO 23% 29% 20% 11% j ' t4'(LP HYPQ it S C°I1MkS i i f I f ! f f rl O • • • 1 f f 1 f f 1 1 1 1 ( ~ f f _i BIT a 61t~G t~ ! ® Denton's Cralcal Success Factors (CSFs) ,ENr~N'S w~MM15 A fop MUY HELM HE wff N A STM wM E= AN A ~EIUTIMHr MroM EDrCATIrMAI ATiAA1MElt11,11~ - ~ Employers interviewed were very positive about the work ethic, dependability, and low turnover rate of their employees ■ Educational attainment in Denton County shows the City to be competitive with locations in'Texas and around the country over 85 percent of the civilian labor force has at least a high school diploma and twenty percent has at least a bachelor's degree • „ IYAI C.OM 101 NI IAI. Pllfl Various Consulting 4 0 i LABOR COSTS PHH FANTUS CONSULTING INSIGHT I abor costs are key lactors for Back 011( e operalwns in the While cllllar seclof and for most manulaclurnrs, they rue less significant for high profile operations sock as headquaters and smaliei facilities such as sales olRces and fl&171aahNos I'uh•lished wage 5 1 a11511 ca lPlay be ftl, ut11011b O measure of labor cost, where stratification is dramatic or where the rnatonly of lirms are I,urng unskilled labor Misleading statrslics may'scfeen out" the ;:area in the mlial phase of a location study However, they are often used as a means of fudging overall labor costs of an area Once a cornlnunrly survives labor cost screerung, labor quality and availability he(mrne more imporlanl to companies Companies no longer seek only the cheapest ptace 1(, do business 'I. r f21NDX3 pa "G E S, k# t l ' + 'o t RI>~Qb _ l NOW A. v: A• ~ l•AI IA ( IIPi ti 1 6 i . i l l.l,..n r, r r IhP I mLw, 1 w,nr I ld Ifral h'laIP b hqS 0 1 • a • • Denton's Cntlcal Success factors CSFs WAM M UM IMS iii WMM=JM ■~rur rr mar a nn wME A ACiwA71 ■AiB AA, iAiAAA~ M AT M MM U Denton's manufacturing wage index is exactly the national average 1.0. Often, companies and their consultants engaged in the site screening process focus on locations with less than a 1.0 average. ♦ Given other attributes, a city will not necessarily be eliminated from competition because of this score • 'I he manufacturing wage is competitive in terms of other Metroplex locations but is high in comparison with some "texas rural areas ■ Office wages are 17 percent below the national average, a definite advantage within the Metroplex and nationally !I hu.,n rbi•r lyud CONFIDENTIAL S' Pelll rantus Constdtinq i • rra • • LABO"ANAGEMENT RELA nONS PHH FANTUS CONSULTING INSIGHT Companies screening communities in the early stages of a location search sometimes use unionization and/or Stale Right-To-Work status as an initial screen Metro areas perceived to have existing laborlmanagement relations problems are sometimes eliminated as a result As the search narrows to a few locations, companies often use union election history to rank finalists with regard to labor relations climate As rates of unionization have declined, these statistics and even Right-To-Work status have declined I in importance. Nevertheless, as the productivity and flexibility of labor becomes more critical to business success, actual labor/management relations (differentiated from union history) have become more important This can best be assessed through the direct experiences of manufacturers and other employers who rely on a productive, creative, and flexible work force for success I 111 111 11 1 14 t1) 1 (i9 • 83 1 08 ~ O 06 UIII 0111 L,11111111 AM 04! 0I. 0,'1 0J1 c o +r n ~ n ? 1 1 ou1r Ilainmdl idlwn IIelaU un~ 11u.m1 IMIJ I I f ( I I I I I I E I ! I I i I t l t l I I f. I • o • • r • MLenlon's Critical Success Faclors (CSFs) Ui~N-MAMAidIIEMT ~A1NN N NT SHY FACT ~ ECNNrIC IE~UIMaT MiBITIAi • None of the employers interviewed even mentioned labor-management relations as an issue of concern • 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 per number of employees of any of the competitor locations for the period 19817.1991. During that lime, unions were cerlifled in only two elections, • At leas) one major employer indicated that they would be disturbed to see Denton recruiting businesses with a significant union presence in its workforce -rlentnn ~ Noaernbm 1994 CONFIDENIML .16- PNII Pant•a Co•s•kl e d 1 4 • ti .1 k ` a • m • s. i R r r: e r R N V -z 0'4-6 wi; Denton's Critical Success Factors (CSFs) fEMTIM'S LOIN MAIM ClliaRlB ASE M"-UM FIR. E p lE1IElVW j SUMMARY Lab" Labor LAW Labor AvallaMay ouWy Coale aWuaaawl+ RaMbna (11"00% TX Dams, TX • • O 4 alma, TX • k O DENTON. TX • • I • Coat, TX • • 0 • w"Nalnaoa, 1M • • • Narla, IL • RWNaIdl, CA ( . O CW 4, OA ~ • • LNIma1,C0 ~ ~ 0 A Law Rating Q • NlphAMing llla Jillrf IYO W_ --y CUNI 101 NNAL 17- Piifi F'nnlus Censuiling • ca • • INFRASTRUCTURE Transportation Sites/Bulldings Utilities Air Quality r Pi FANTUS CONSULTING I, Inlraslruclure describes those attributes which form the underlying foundation designed to support local and regional economic systems and growth, In economle development terms, Infrastructure consisls of utilities (elecidc, gas, water, sewor etc transportation systems, available riles and buildings, air quality, and other factors not highly relevant here. Costs for infrastructure based services and products can vary markedly among regions, states, and local areas in the U S and abroad. Thus, those firms with, lot example, heavy usage rates, may screen areas based on certain infrastructure factors at the outset. Normally, however, these costs are evaluated as part of the total cost of operations. What is key In the site selection process is the presence, availability, and reliability of infrastructure that will support the needs of area businesses now and Into the future. Locations with sound and modern infrastructure that evolve In response to The needs of business are more likely to be successful in the economic development inarketpface. I, Empirical Evidence Inlerviewees generally ` g y gave Donlon high marks for utilities and Irensporlalion, but almost universally expressed cancer n ' about the lack of available buildings for prospective now businesses, There was atso significant concern expressed f about inadequate preparallon of available land for building, 'With such good access to DF W Airport and with the Metroplex moving north, we saw land here as a good holding,' 'Road network near Municipal Airport roust be expanded' Economic development would laic a lot betler it ulihty service was in place at undeveloped sites I laveuUa friesl airport ler exeentivus le fly rrr and bud of is a ntaluf phis' i I i f f f ! I ! I ( + ( I ( ! I ) 1 1 1 • • • Denton's Cnlical Success Factors (CSFs) MTNrs TRANRIMT-IN NAT= AN IMM i#MMI J AN MAID NnU I IK ASMETs NOT TIE CM 4 MEiATRUY WEAK M OF IN AVNW--IR Tr 0 MRM AM MM-- • REs With the exception of the need for better and/or more road in the Airport vicinity, Denton receives universally high marks for the transportation access it offers, This is a powerful competitive advantage. • Virtually no interviewees even addressed the utility infrastructure situation and none indicated that water, wastewater, solid water and electric services are a problem. Utility costs and service are competitive. • Demon's lack of speculative buildings for purchase or occupancy was cited as often as any other single factor as a problem for economic development • While the city can boast of a number of large parcels of land suitable for different kinds of development, the fact that many are not frilly served by utilities and have not been publicly priced limits their economic development value • i cukf tot Hnu l8• Pill] Fantus ConsnltlnA • to , • w • • ~I TRANSPORTA 77ON In today's global marketplace, a location's competitors for investment can be found around the world A location is well situated when it is able to access and serve dome slic, and increasingly, foreign, markets After geographic location, and its attendant transportation costs, the key lransportation determinants are the physical infrastructure ports, interstate and highway networks, multi-mode transportation facilities, and rail facilities At the MSA level, screening typically occurs based on the existence of these infrastructure attributes. At the local level, more detailed information is analyzed, such as specific highway and rail connections I EMPIRICAL EVIDENCE Denton's Key Transporlation Features. Central US location • Proximity to DFVi Airport and Alliance Airport Denton Municipal Airport with expanded facilities ' • Position at intersection of Interslates 35E and 35W, as well as other major arteries • • Daily freight service from two railroads • l i I l I r I r I I I ll { ~I l 1 1 1) tI fl I1 • 4 y • • • r s r r r r t r r r r r. b r..4 u F ® In mton's Cnticet success Factors (CSFs) AAlMIMTAIE lEM M JU MITATNM ASSETS ANE A IMMM r With its combination of air, highway, and rail accessibility, Denton is an appealing location for businesses with significant transportation needs and is poised to play a significant role in NAFTA- related trade ■ While Alliance Airport, with its state-of-the-art intermodai facilities and high-quality developed industrial parcels is a competitor with Denton, proximity to it also offers significant advantages to existing and prospective Denton businesses f ■ The only issues raised by interviewees relate to the need for more, or expanded, roads in the vicinity of the Municipal Airport, and the need to ensure that development along 1-35F: does not result in overwhelming the capacity of local transportation arteries • • • J CONFIDENTIAL Pfllll F'antus Consulting _ - • • • Sites/BuNdings PHH FANTUS CONSULTING INSIGHT The avadabdily of ready sites aril buildings is one of the most critical factors in the location sole<aon process Wlfile sde and building availability is typically screened at Ilse load level tiller the search has been narrowed to a handful of locabnns. Wilts winr unupie needs and specifications may make am rmhal screen based Of availability Thus, this repieseuls a dadreal Iacfai in closeill like deal and, somehntes, in making it successlulty through Ile indal screen Regions and conunaultes nwsl be ptep,ued to acconunudale mew mveslntenl In(fuslnal sdeslpnrks must mail the luflownat cntena. among others, to salisly most expandmgnetocalmg corporate investmerd needs 11 Appropuate size and expansion polenbat Coolrolfed ownership and willingness to sell Direct, high-qualdty highway road access i Ability to put large sites together (r e , 40 acres of more) Salrsfacfory fopooraphic and subsoil conditions, and suitace, drainage Flee of envuonmenlal problems Proper indusloal zoning j Full industrial level chillies near fie site Compatible surrounding land utie Eslablished asking price and sr'e terms EMPIRICAL EVIDENCE • Virtually all inlerviewees expressed concern over the availability of ready sites and buildings Another faclor impeding development of the good supply of undeveloped land and hampering marketing efforts is the lack of established asking prices and sale teens Several developers and business persons expressed doubt that large• scale development would soon occur even if more ready sites and buildings were accessible Slrong need exists for a hlgh•qualily Industrial park developed by the city or private interests " IB Economic development would benefit front ulibhes being in ptaco up-fronl at undeveloped sales " • While it +aould be a positive faclor for Denton to have more ready sites available, the fact is that loo much moll exrsls belween Dallas and Denton to make this the next logical place to develop in Maybe another 5 id years " .uav~l ,p l ,r iu, d~she r,Fuut pn(.r• lot ••tnnu pmmu hrmf w1111e others are simply asking toonurch fol mm acre I • i t~ IR•,' W- Mr- ti 9.,-. &7. 1 it t 1": Il 9"z W-z NZ i~ Nf~l 11~A . r ® Denton's Critical Success rectors (CSFS) IIENTIM'S _KWI MENT IS NINREREM NY AUK= IF KMV-VM AM 90 NO ESTAR[ISNED_ASMI PRIM -ISM N TO A11AlLARLE IAMN. AN THE EMiS1E - K RfSIRARLE IN U SITES CLISH To THE CENTER V METMMI NOW AN M ARM ■ Demon can offer acres of available land that, for the most part, is not fully served by water, wastewater, and electric utilities. This is a detriment to most expanding or relocating businesses that need to begin operations immediately. Denton is not currently prepared to accommodate meaningful new investment. i ■ The economic development marketing effort is severely crippled by the difficulty of obtaining any, let alone realistic, asking prices and sale terms for sites. A recent listing of available industrial sites suggested that tewer than half of the available sites had established sales prices of which the City's economic development professionals were aware, ■ No spec buildings are available or planned ■ Ewen if numerous available sites were filly served, or ever if a number of spec buildings were available, • rapid commercial development may not occur in Renton due to the availability of significant developable parcels in closer proximity to Dallas, Fort Worth, and DFW Airport f Uuvrm Gri 14~J-I coartaratiAt P1111 Fanlus Consulting c l O • c> • • UritrrrtES In today's econornic development environment, the availability of adequate eloclric power is :eldoin an issue, reliability and cost are much more significant Electricity cost is the utility cost which can most ohen influence the location decision For high energy users, electricity can equal live to len percent or more of locatiion•depundent operating cost except lot very large users, high electricity cost probably will not dissuade a site seeker by itself, but can add to a decision to look elsewhere. COMPARISON FOR TEXAS MID-SIZE USERS (OCTOBER 19911 r. r .rr ao,•ga ~o,ooo •as is 13 442. _ 14 002 ~l.beo Is 000. 3 2 - 10.000 1 ~ 5,000 I i 0 ® e 6 s 16 A s w o i I E I f I • a+ • Demon's Cnhcal Success Factors CSFs BEimn muter sEln ;E AN1 ears AN CONUMM aw N INIr Alter AHEM R! 111E M IMATIlls VOT ~F n1E cMANt~a ~f~ ■ Utility costs can represent a significant portion of overall operating costs, and are important to attracting new businesses. However, virtually no concern was expressed by interviewees about utility costs or availability. ■ Management of Denton's utilities electric, wastewater, water, and solid waste has been of high dual;ty and new development should not present undue burdens on the systems in place, a result of an ! clTeclive planning process ■ Denton offers strong Telecommunications service, including a fiber optic network available for tie-in by businesses r While the Mate of its current utility services leave Denton in a strong position, a number of interviewees suggested that Denton should be extending services to more undeveloped parcels of land to make the Cily more attractive to potential new investors ' {4 I 6 CO NF )nE Ni TAI. 1- P1111 Fantus Consulting Q .I w s • AIR QUAUTY i Large scale manufacturing clients regularly exclude all non•atlainment areas from consideration altogether, rather than face the associated regulatory complications and potential controversy Because most air pollution comes from vehicles. federal regulations for "Serious" and "Severe" non-attainment areas can effect even large non- manufacturing employers. Therefore achieving attainment before reaching these levels is absolutely critical to long•lerr^ "tconomic vitality. I • i I i s I i rr.•,r ..~.w..rr".... • • r aar w•r• 'Al/a • • f f i i f. f- f f 1 1 1 17 1 1 f Denton's Critical Success Factors (CM) AIR "MM ONES NAME THE PITWTf W TI INTERFERE WIN NENTHI'S ANIU TN ATTRACT ANR RETAIN RISINESS ■ The Dalias/FI Worth Metro area, which includes the counties of Dallas, Tarrant, Collin, and Denton, is classiried by the US EPA as a "Moderate Non•Altainmeni Area." Denton County is included in this designation. ■ The North Texas Clean Air Coalition (NTCAC) has developed an approved State Implementation Plan and initiated strategies to reduce emissions and achieve attainment. Despite four exceedances in 1994, ozone levels have already been reduced, and the Regional EPA office expects acceptable levels in 1995 as auto emission testing, vapor recovery, and other strategies are introduced. Additionally, NTCAC's ellective leadership has created a very strong relationship with the EPA. ■ Failure to achieve and maintain good air quality by 1994 can lead to redesignation orthe DallaslFt, Worth Metro area as "Serious" in 1996 or 1997 Federal penalties for a "Serious" designation include. • • Adding 8 counties to the four now included in the Moderate Non-Attainmenl Area ♦ Requiring offsets for any source of 50 tons/year or any expansion of only 25 tons/year, at a ratio of I21oI • Requiring clean fuel strategies for any vehicle fleet of 10 vehicles or more (including non- manulaeturer's Heels) ♦ Requiring a lurlher 9°io reduction in ozone levels from the 1990 level. / rie - nIon_.. November 199-1 CONFIDENtIAL • 22- PflH Fantus Consuhl"s • d • c~ • 0 a r r r r r r at a r I r r a :X 2 r. ZZ ffm Oenlon's Cnhcal Success Faclols (CSFs) ®EMTIM'S i1f1OTAMCTINE_IffW A MEN W Ti IITEMTlAL MMMMMM SUMMARY irenyroltetbn 6aalleulMKps lAaKlel All ousmy Oreyeon. Tx 0 • • Dallas, Tx • • ow", TX OENTON,TX • Q • Q can, rx • • • O VNlw rp s , TN • 0 Kane. IL • O Rhernde, CA O O Clarke, OA • • 0 r Lsmer, W 0 ~ ~ ~ ' • low Rating 0 NON aling • I RaW Sys LaarA nn cnlmrd c1w1 n sedrxis d Ihh Real ad6elsMly IM eNapery Aadln9e) ' CONI I DE N I IAi. 21- PIIFI Fonlus Consulgng 1 • W • LOCATION MANUFACTURING PROJECTS I Denton Mat Aotlw • tiaaft Ana e e .:.•~rw~r.~... V - • r rl•M+Y~1VL 1'!i :YY.. i. it • w e • T ® Denton's CMical Success Factors (CSFs) I IMIN Is snuTEGICIUY sn1ATEe BU M iuTon nsr Asm wua~ rf~ nl~t SEANCN AREA AN NQUIr M14 BM M SWNIEI M 11'lINi1NIT1Eli W THE ~ATI AN_NISTIIi" N SEMRS f a PHII Fantus Consul Iing's experience indicates Ihat the majority of searches for manufacturing sites are now conducted in the area shaded on the facer page, Although the area extends to a point within reach of Benton, the fact remains that the city is not in the area. ■ Denton's location between the manufacturing search area and Mexico could nicely position it for NAFTA-related growth. Denton is within one-day trucking time of the entire manufacturing project search area and it also has superior north-south linkages that make it a natural distribution point for products being shipped to and from Mexico. a Another competitive advantage is proximity to DF'W Airport and Alliance Airport. When combined with highway and rail accessibility, these assets give Denton a superior profile for distribution and transportation-related services. • a Denton should be attractive to non-manufacturing employers because, among other things, it is located in a state and near a city (DalidS) that are hot spots in the office location market i Novernber 1994 CONFIDENTIAL •21- Plfll Fan(usConsullIng i • ~a • • Donlon's Critical Success Factors (CSFs) pfMTNN'S llc~nNN is A CIMrETITNE Ar'IfAMiAEIE ~N ~Ti11ACTNNi NfRTANI IMNITE cNW AN, NuuirF~nNN~ eEU~a arr SUMMARY As WWAM IM At Latsbm NI As LaeaaM Isl wimo~ W4 WI,I06-CA461 WMalaaW# N1NMinaPt MraMagnl DIYNWM Grayson, TX 13111 O Dallas, TX Bravos, TX O O DENTON,TX 0 Collm, TX Williamson, TN . Kane, IL • Riverside, CA t' Clarke, GA O Lorimer, CO O • Lour IRa1Nq O - Nio "Wig (Nalvpa bawd an pNalb cNd h dAlaran! wrAbm of o" Note" ) l lln rcn,pcl 1!94 CONE I DE Ni IAI. 25- PIIII Fa11175 Consulting • 0 a~ • IMAGE Business Awareness i Economic j Regulatory Development Environment Program s 31 Denton's Image • • Taxation • • ~ i ` J ~,1 ~Il fah ~I 1 • w • • OCritical Success Factors CSFs PENTINI CIIIIIENT.IMAIE ERESENTS A WNIER TI ECume pgalrMEMT p ■ Subjective images are a key economic development screening factor, often eliminating a location, whether stale or city, from consideration before other more positive factors are considered • Images are oflen based on certnin easily discernible features that serve to obscure other area strengths • Images may be derived from historical truths but oAen do not match today's reality ■ Denton has a multi-faceted image problem Part of the problem is a function of geography; the other phenomena impacting negatively on the city's image are very much within the capability ofthe city to resolve. The key issues are: • Many view Denton as an attractive town in northern Texas, near yet separate from the Metroplex that, for various reasons, is not destined for the type of rapid growth that has occurred in many areas of the Metroplex • ♦ Despite the perception of many in Denton that the City is, or could be, the third major jurisdiction in the Melroplex (the "Apex"), many Melroplex developers, business persons, and residents do not see Denton as a logical extension of northward growth in the near term, They see it, currently, as an appropriate home for select niche businesses and housing developments. 17uvelnbcr X944 CONr IUf N I IAL 2o- PIIII Fanlus Consulting • A t • Q • i • Demon's Critical Success Factors (CSFs) BERMS CIANDIT iNUE PAESDO A UNAM n ECMUN NEM NWW 11"M (ON") • In a 1993 survey conducted by the Survey Research Laboratory at UNT, only 6.3% of Melroplex respondents indicated that they thought Denton was a "City in (he Melroplex." • In that same survey, only 4.9a/o 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 • Further, M 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 Melroplex or seek to solidify identification with it • Denton is viewed by some segments of its own business community as "anti-growth" or "anti- business," a perception that, in turn, 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 ofthings, including miscommunication between the groups and, perhaps, differences in how "economic development" is defined • This rift, and the bad feelings it has engendered, have helped feed the outside view of Denton, not too widely-held at present, as "anti-business." Efforts to merely cover-up the problem are • unlikely to prevent outsiders from learning of it. (lemon - ~ - November 1994 COWIOENIIAL • Z7- P IM Fantus ConsultiaR Wdomkow • w • i ELDenton's Critical Success Factors CSFs ECRINMIC ~IEIil~T ~NIt [C 1 • 'rhe City regulatory scheme is viewed by some, including sympathetic elements of the business community and government officials, as overly burdensome and slow The one sector of City government that is subject to the most criticism is the planning and zoning function, which has begun addressing the complaints by expediting certain processes and inculcating a more customer-friendly orientation among its professional staff • Denton's economic development effort, while a reasonably strong "traditional" program, may not be competitive with the higher-powered programs ofcompetitor locations • Denton's current economic development effort is unlikely to produce results that meet the expectations of key members of the Denton community. The program is essentially reactive; while effective at prospect handling once Denton makes it to a Anal screening, the program has not been proficient at targeting and attracting interested businesses. • ♦ The economic development effibrl has not successfully established a "brand-image" for Benton or positioned the City as a suitable location for business within the Metroplex. 7 Nr,vrm Bri 1694 coNHOFNI IAL ?8. P1111 F'antus Consulting • b ;~s I _L &ftwsmlw~_ ._J • ca • • TAXES - CORPORA TE INCOME AND PROPERTY PHH FANTUS CONSULTING INSIGHT Corporate tax, bur den often receives dlsproporlrona(e emphasis compared to its relatively small impact on actual operating costs however. business taxes are often used as if proxy to measure stale business climate and receptivity to business growth Harder to quantify, this receptivity can influence business success through the speed with which permits are issued, among other things Corporate tax levels, along with overall tax burden, may also be used as a partial measure of the effectiveness of public sector management Very high or extremely low taxes, in combination with perceived detencration of public services or infrastructure, may indicate a hislofy of unwillingness to pay reasonable: costs associated with government Ultimately, such an environment leads to higher costs either through inefficiencies in required services or through higher taxes when disrnveslment can oo longer be ignored Pioperty taxes while highly visible, are generally a small part of total business costs This is because they, too, are seen as critical to business climate, and abatement is among the most-used development incentives • Properly taxes are usually the easiest and often the only - cost a commi-1-1v can directly reduce Tax abatement can also make a ur,oginal but decisive difference in close locstion choices • Pro: oily faxes are the most viable indicator of focal government quality and fiscal health • r or specific t; pes of companies, property taxes can be a significant cost (e g an inventory lax for warehouses or tax on machlnory for cash-poor, rnslrument•nch high-tech start-ups) ~ v~ ahn':1,. ~e.tllll t wwrp trli~y~'It'i ''.L'' 'C + 'utin i Ip0~~.1 QCORI0T~1f Corpo{gtpi~+?f4~1~~~5~1.~441A,,.. i. ror}ApWicatlon: 1 _ Texas 4 5°% lax on `net taxable earner) sarrplus,' effectively equals federal laxable Income I w.. • California 9 9% applies to "net income." elfecbvely equals federal taxable income E " Colorado 5% applied to "nel of ,)life ' elleclrvefy lederal taxable Income Georgia 0% applies to income altocaled to Geourut ►rl~}71 ~ G, based reedy and sales also apphns Net I! W01111 lag of If[] la $5 000 • J f' Tennessee 6% excise tax applies Io nil earnings J { , ~rmrr..Irvely ledel fl layatrle o m,rnne 1 I • ~ d • • ■ • * [ t.'.:. ~ EiT`:~ i~"'~ >I~'+!F litr''1pi [Mll ~ Denton's Cnticat Success Fsntor% (CSFsj IEMT1N SWES IM Tom, LWTU 1W"" Me To "WALFA"TEOPM ■ The image of a state's/locality's tax situation, as opposed to the reality, is critical in the location decision making process Companies often perceive Texas as a state without a corporate income tax when, in fact, the 4.5% tax on "net taxable earned surplus" is efrectively a corporate income tax, In any event, this tax is significantly lower than in each of the competitor states identified, v 'texas remains one ofonly four US states which do not lax personal income, This may appeal to corporate executives and to companies for which professional recruiting is important ■ 'texas now allows and all of Denton's Hay tax districts have adopted the Freeport exemption, which exempts certain business personal property destined for out-of-stale shipment from property taxes This should greatly enhance the city's competitiveness with non-Texas locations for wholesale/distribution businesses. ICI"I~I111 ~ COWIDENIIAL PI III MantU6 Cons.uhing 77 s e~ , !1 I .y~` r 1~ li+~y lair/'t • • • a Denton's Critical Success Factors (CSFs) OEN11N Ics_ A IWI®_IMACE FIN ATTIIA~HNQ NEW e SiM.ESS_I_MYE iMM SUMMARY acorwnic ft$wW T helnete Teeee m"Wperri Enrkorwrrnl Agrrrps hopram Ourran, TX • 0 • W Ms, TX • O • • OEIf10N, TM 0 ~ O • CoAur IX • • • Wmwnson, TN • • 0 Mom, IL 0 • Hrmsde, CA • O r Uarw GA 0 Laiuncr 00 0 • O • • Low ROW4 4 • H* "mum • (Rdturys OAW pn nrlpw LAM M Wl"w or Ila ROW WW4; Mp IM cmift" Needage) I ),Awi ILJ+rrnOrr I'J 94 CONFIDENTIAL t .30- Pill[ Van(" Consulting y 0 • w • 1 ouafity of We PHH FANTUS CONSULTING INSIGHT As the nation's economy matures and the business location decision-making process becomes less dependent on classical location delerminants such as access to raw materials (for traditional manufacturing) or markets (for consumer products), new location decisions are often based on relatively intangible quality of life factors such as housing costs, recreation, cultural amenities, crime rates health care, elc " Quality of Life" is typically defined as (tie sum of up to len factors relating to lifestyle and non-workplace environment Which factors are included, and how they are weighed and assessed, vary from person to person, making any attempt to characterize quality of life risky Since each community is a bundle of different characteristics, which may not compare readily comparisons among locations are even less reliable, except in the context of specific preferences For this reason, PHH Fanlus does not include a summary page in this section of the Report Nevertheless, companies and the individuals they employ do consider these factors seriously Quality of life factors typically come into play once the screening process has been narrowed down to finali,>t I communities or MSAs Therefore, it is important to identify the key Duality of Life strengths in each j community and present them clearly as part of any promotional effort { Rating Climate A PHH Fanlus survey of recent MBAs found "Climate" to be the leading criterion for personal location preference But the "prelerred" climate was almost exactly divided among "warm dry," "warm temperate," "four-season temperate," and "mountain " Almost every U S location fits one of these climate profiles, each of which appeals to about a quarter of the survey population • ! 1 ! r I ( I I I ( f i ( f I ( t f t i • m • • tltf ~ 1,,-. w,.,,_. ~ . fIQ I'. ~ I)! ~ r l` fi'.~w 1R Rl ~ ~ IFL'VO t~ I~ Denton's critical Success Faclors (CSFs) . DENTIN IFFERS A INAUTY IF LIFE THAT WILL BE ATTRACTIVE TI MANY NNSINESSES AND TIEIR KEY LICATIIN DENISISN-MAKERS ■ Denton has many features that, while irrelevant or unappealing to some, can be assets in attracting and retaining business ■ Demon's cost of living is attractive relative to other locations in the Metroplex and to some competitor locations nationwide ■ The presence of the major universities is a major plus, offering the public cultural and educational resources unavailable in other communities of similar size However, interviewees feel that in many respects, the city has not leveraged the universities to the fullest extent possible. e Denton is widely perceived by current residents as "a good place to raise children," attributed to, among other things, its low crime rate and good access to recreational opportunities ■ Denton does lack some of the amenities that relocating businesses often prefer to see, such as a variety of quality restaurants and hotels and a choice of personal and business service establishments to patronize. The absence of "liquor by the drink" does not enhance the City's image as a modem community ♦ This point is bolstered by the findings of the UNT survey cited earlier. Only 3.4%oi'Metroplex respondents identified Denton as a place to go for entertainment, 4.9% as a place to go I • shopping, and 5% as a place to go out to eat. These figures place Denton below Garland, • Lewisville, and Mesquite, among others. November 1994 CONFIDENTIAL J 1- 1`11111 Fantus Consulting O 0 • a • • Dentun's Critical Success Factors (CSFs) DENTIN IFFOS A1 LIT1 IF UFE THAT Wlu .II AT ACTIYE TO N1Wi IISINESSES ANI THEIR IIET R LICATIIN tFCIS1IN-N{ =S (CON 01 a The civic effort to beautify Denton and its gateways will enhance long-term "curb appoal" a The public school system is viewed as reasonably strong, receiving mixed reviews fi-om interviewees • Some were very pleased with the schools, noting that they offer curricular and extra-curricular programs unavailable in locations in which they had previously resided • Many interviewees believe that Demon's schools compare favorably % th other Texas communities but are concerned that standardized testing scores are not as high as demographics suggest they should be • An oflen-expressed concern is that failure to expand the lax base could result in an inability to fLnd the schools at an appropriate level • thmton November 1994 CONFIDCNI IAL 32- Plitt FAntus Consulting • p • r r r r r ~ ~ r t ~ r e r g r a~ ~ a, ~ w, ~x 4. ! z f a i t y T a .a E~ Ew, c € t e { r t . t `s . 2 13 r a i i i y .S Y r t ti ,i a, ~i 9 I .c c rt c ..}3 r i sa ' 2 t > 3 'C C ~C Y! I ~ ' IV. KEY STRENGTHS, KEY WEAKNESSES, STRATEGIC OPPORTUNITIES AND STRATEGIC THREATS ,i F Hn a A P£~ly+2a«° P"! F"H+'~s, ta~H i=! ~'t9.E 1, :1 a r a a s s d t fi c s~ s0. Id ntP' EY= La iltl f a ' f. 31 12 ' u N iFe W a Pc'fo Sa ~ ~a i d ~ aS n[ T- i ~ '3 f Ea = N A ~ Y P ] 1 S~~ Y a W 1 El Y! ~ 1 Kt, ".e Hi^ Er 1 q ~ ~ H. °i ~ tsu='1 C xk ~ I~lix ' t r a li E.c t f t' ' ~ P"_S3 NF C Pov+ ~>'~A=s ~,5~ N ~ a{a t 3rd EEC ~=4a S S f. a ~ fy x711 }l.~7 14r I p{',,I.tI HN F PE M ~i='H&' 1! f hs Ia;~f.3.. t iJ$~tlt Y f f 1.^l`1aTL'S3a`t S} n t t n 1 ~ r4 J l a k ' 7E w ~ "iF :2 `y i~: y} (b ~ a t~ F d v ' a ~ 7. a . 6 3 P 3 }f tY 'a v y X ~ ~C`#.3 ~'~7..r hP S.FS ~ E ~7`C~ ,.r"z $ ter' E Yl' C ° h x +i c N Y t~l P r a[9 inC7 Y~ i t 8! e [t rf a=y a wst klr C~ 6ROP 1:~9~iE ~C:.. n~~r~~'•7 c Y f 5 Et , „f ~1 s @t S S 1 a. b 3a fn 4 i i~ a3 ryy t ~ at N~.Q } s~t3 Rl~ SD•t t'y f d 3 c a e a d E e r x G tlai d ~ Ct`d ry ,Et cei St F3f""3 b°4Ei.sGGG 3'55q v'In~~16~6~~~7a~l I a Yt y ally cr ~ `~`3dtl~~~'!~~ IFay y,`,Y£ ~'s _ , p Ya "E '4 t ~ x ~I tY rr ~.H y.~a ErKd t t~ ~.H 3 ! IE`w i 1£' , c 3 3 = E I-. tv E 9 ~'a :~y~ ~t~ ~1~l+A 9txilt~ ~emR.3r^~~'~~1i~3~ g Y na atAfSr~` x~`#}r} ~ylj~iA f t~}(~t. }fitry'~S. a ~k5 'l'`E W a 1 R' t',: ° ~f, `3 ~ H ~ D ° a w ~ ~i ~4~ ~,~4hl~k~'~i ~•=~!{I~~~xK ~i t~~' t ~ ~ T 3' , 3 s v t u s ~ T,3 >a 4 ~ a<f : £ r '~'F (a p'1`~~1 Et 3! t7 r. K'tw , a 4 tttf. ~tA ~i~ Hnu iii R, F.4e;'i ~t. • E I i • m • • _ ;P d s 11r s >a 3~ flit i11® Key Strengths Key Weaknesses Strategic Opportunities and Strategic Threats WS ILFAGM [Jecause of its geographic location at the northern tip of the Metroplex, Denton should have the luxury of determining how it develops, as opposed to being overcome by the suburban growth 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 metropolitan area, Labor • A workforce [hat is reliable and possesses a strong work ethic • A high percentage of employment in the public sector providing relative stability in the economy 3 ■ Office labor costs [hat are relatively low compared to the national average • ■ The ability to draw from a 5-6 county area, a metropolitan area of 4 million people, and both a rural and urban workforce ■ No significant labor-management issues 1lrnton November 1994 CONFIDENTIAL • 34- PNH F'antus Consulting i • V 4 i N l .a Kay Strengths Key Weaknesses Strategic Opportunitlea and Strategic Threats Iii ML1f~ U(CSK Al infrasiructurt and Location a A geographic position likely to reap the benefits of increased NAFTA-related trade r A transportation infrastructure that is a major competitive advantage--good highway access, proximity to f DFW and Alliance Airports, Denton Municipal Airport, and a central U5 location k ■ Competitive rates for power, water, waste water, solid waste, a well-run utility system with the capacity to I absorb growth, and an existing fiber optic network • A position in a hotbed of white-collar office location activity ouality or Life • ■ A relatively iow cost of living, and a solid public education system ■ The presence of two major universities and the training, cultural, and recreational resources they offer r ■ An ongoing collaborative effort to re-define Denton's economic development program that signifies the community's awareness of the need for enhancement ■ Freeport excinption and perception ofTexas as a low-tax state i Denton Novembei 19D4 CONFIDENRAL ;g- P1311 Fantus Consulting • w • ' ,Y t, f p 01.,9° k ! w w 0.`-> a CA WIN IIt49fi Key Strengths, Key Weaknesses Strategic Opportunities, and Strategic Threats... ■ Costs of manufacturing labor are high enough to put Denton in jeopardy of not making some screening cuts in corporate location searches Infrastructure • General shortage of available buildings ■ Unavailabillry of prices for major parcels of land, a significant percentage of which are not fully-served by utilities Lack of high-ene housing for relocating executives a Narrow tax base as result of heavy presence of not-for-profit sector and substantial residential orientation • ■ Limned roads near Municipal Airport f n 1 I ■ Outside most active national search area for manufacturing locations i Denton t '1 November 1994 CONFIDENTfAL 36- PHH Fantus Consuhln0 r i dry n , , • a~ A {I. - ~1~ nt• a.avn,'irv YtM},WT.Ctyh:rFtk'SY.xir7 ,«;y; t~•ii. ~~ve. W tils'r Imo'" tll~'I~ bti tig~4 l~ N! Illlf !6dY OM M ( `I ~y Key Stren ths, Key Weaknesses, Strategle Opportumties end Strateglc Threats m■ WCUIM I age r ■ Economic development effort is net well suited to meeting expectations of some segments of the business community r Lack of effective communications between city government and certain elements of the business community result in misunderstandings, growth of perception of Denton as "anti business", and missed development opportunities ■ Perception that Denton is too far from Dallas to be other than a "niche" location for some new business and the development of residential housing Ouality of Life ■ Limited high quality amenities, such as restaurants and hotels • f i November 1994 CONFIDE N NAL i 37- PHH FORM Contnlting Now • • • t v tli t i ;I i ! it Y a Y Vs x r Key Strengths, Key Weaknesses, Strategic Opportunities and Strategic Threats I i STRATEGIC TRREATS I • Failure to decide whether the relationship with the Dallas MSA is a positive or negative factor for economic development, and taking appropriate action this does not require a one-time, black/white decision but establishment ofa process that ensures the economic development effort is in sync with community sentiment ■ Continual creep of the Metroplex north, which may ultimately determine how Denton develops unless F the community is proactive in defining and controlling its growth while there is probably a five to teu ! year cushion before the Metroplex "arrives", concrete action to position the City is required now { before an undesirable chain of events is triggered • Available WIN 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 immediately, for another 10 years • ■ An economic development effort that is relatively underfunded, limited in scope and, pending some consensus, not calibrated to meet the community's objectives the level of effort required will be dictated by the nature of the results sought ■ Continued miscommunication between city officials and certain segments of the business community • could stifle development and perpetuate the view that the community is unfriendly to business public • sector and business leaders share many of the slime concerns but have different approaches for dealing with them L)enton Novembet 1994 CONFIDENTIAL .38- Pfiff Fantus Consulting s O • r t._, r_:. m-~ s.. r ~ ~ ~-r ~[-r~ :tea Key Strengths, Key Weaknesses, Strategic Opportunities, and Strategic Threwts; STN MAI TNNEATS ( !NT'p] f M cr•em-hn n c manufacturing investment at expense of other kinds of businesses becau,,e :p'aor artd average wage figures, the main thrust of business investment pursuit should 1 a , ,tors • 0 Denton - - _ November 1994 CONFIDENTIAL 19. ANII Mantua Consulting e Ca e • 1 PHOTOCOPY J worm "I'm a ' 1 ' t '1 a ( t 'w fit t 3 tt r 1 H ~ ~ nu lCt ~Ft 7t 1n,u. ~ ~trijll t ~t i ~t ~'.e E t ° n 7 f ~ ti~dNS ° 4~ ~1~[ t~ ~1~~~y lEl~ 33gE; ° a~~`~t ~ Y3,+, $9~. ~1 iH p t i R~ t a t e dw 3 t'' t 1trlt T A?4; ~JlvJ s&~kI WORKSTEP THREE 4 ui tts ds< G ~E7 6 i L1t lyt: _ tt' prepared for 'E Pre3wled by. r ~ t f~,•..... x•611. r _ J e ~ o • • • PHOTOCOPY t ! ! ~S !!tii ~ ,`~j i r'~ b ply ~ 3 e~35y ~ > >7~3i ~3! d!ila~ ~ ~ °t _ ! r~~,~" ~7e~4~1 ~A! ! 3 t~M ti y~r r w r i 5 i' i ; ~ ~ h EE ' E' f ' r e • i • • i PHOTOCOPY ~ r- 4 x.w.~:>.y~:w~>n.AAekvfk,V m7 Mr.,h.71.!!Y1~A 1177 17 1 is `4 V1 9"X i~ IN AM1 M• I. BACKGROUND . t I e ~ s • •t . i; r., r 1~,~~;a ,~j ~rti~Eq„} iS:'e yip iF*~tNF"h,`F r ~l ON • • • Background A 5 i 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 Denton's efforts. Our specific mission in this project has included: • Identipcation 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 • Specific assessment of Denton's existing marketing and retention programs a • Identification of possible economic development strategies for Denton and related programmatic and operational initiatives e • , I Donlon January 1995 COWIOENIIAL 4 PHH Pantus Contuking vw.w.w.....sr.M... . , w ~...r WAY ...-~...:'{'.Nlil'.. . 0 O ; A I c• • • ;c Beck round F j PROJECT APPROACH t • 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 presented our findings at a briefing held in Denton on October 21, 1994. Specifically, j 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. • 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. 1 Specifically, we critiqued Denton's current economic development program, and utilizing the data generated during the first two Worksteps of the project, preliminary suggested viable strategies for addressing some of Denton's weaknesses and d strategic threats as well as taking advantage of opportunities and strengths. A • similar presentation was made to a public meeting in early December. Oenlon January 1995 CONE I DENT lAL S PHIi rantus Consulting • 0 • a • .............n.~r rey a.ren0.ro'4"0' J:S~Vgiy YJ-tibA°#611. =--BUmkground., s PROJECT APPROACH (CONT'D) • This Final Report, the findings of which were presented at a January briefing, builds on the Workstep Three briefing and provides more detailed recommendations, addressing earlier points raised during that briefing, the public meeting, and the January briefing. 1 - Denton January 1995 COWIDENIIAL 6 PHH FaNw ConwM • 'r !y , ttShr} i `.i:b r{}`~rl. ~x{~ L~rr 111 i s • 'r;' ,ff>k( xrx QY,C ,~atin it G-+~ iI ~,.1r l fY; t~t'.i~MY f ~a 9 a ! ® t y y•_ Ot N ai 1R w Z Z NS„Ml Background 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 g 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 OPPORTUNITIES • Attributes of a university city with a hometown atmosphere and access to resources of the Metroplex • The presence of major universities • 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 location activity E • Excellent transportation access, especially highways and air • Central location for participation in NAFTA-related trade a e • Abundant available land i i Denton January 1995 CONFIDENTW PHH F•nlua co"Auhint l A 0 • • Background 1 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, j Denton's distance from Dallas • The VISIONING process as a foundation for a collaborative community effort to define Denton's future • A number of businesses satisfied with the investment environment in Denton WEAKNESSES AND STRATEGIC THREATS • Lack of fully-served parcels of land, spec buildings, and prices for available lots • Lack of image and business awareness within and outside the Metroplex • Indecision about the relative merits of tying Denton's destiny to its relationship with • Dallas • Economic development program that is not structured to compete with higher- powered competitor locations y e • Northward creep of the Metroplex that may restrict Denton's ability to dictate its own • future y~ Denton darwaty 19951 CONFIDENTIAL I i A PHIL Fantus Con vNinr • to • • a • iit t t tt t t t- t t tr a z w x T !ice Bac> round REVIEW OF STRENGTHS, WEAKNESSES, STRATEGIC OPPORTUNITIES, AND STRATEGIC THREATS (CONT'D) • Available infill between Denton and Dallas that may delay the growth desired by 1 some among Denton's business leadership 1111{ • Need for improved relations between some elements of the business community and j City government • Local manufacturing wage costs that do not provide a marketable advantage • • Location outside the most active national search area for manufacturing locations 1 ANY CONSIDERATION OF DENTON'S ECONOMIC DEVELOPMENT PROGRAM AND FUTURE STRATEGIES MUST BE UNDERTAKEN IN LIGHT OF THE ABOVE FINDINGS e • oenton January 1995 COWIDENIM 9 PHIi Fontus Comoking I • b • • • Background } tai 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 • 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 that now exist or should exist in the future, In total, the City presents a strong economic development profile for targeted industrles/businesses, one that compares favorably with likely competitors. • 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 • Denton's civic and business leaders have recognized that their City is at a • 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 • While a consensus seems to be developing around the position that Denton may be • an "underperformer" from an economic development standpoint, given its assets, • Denton January 1995 CONFUNTIAL In PNH FRntus Consuhing i O 0 • • r r t_ r i r i r r t s. sw sr : z r iL.~ ano t~llMt n~i l _BrcMyround ti } DENTON HAS MANY STRENGTHS ON WHICH TO BUILD ...BUT MUST RECOGNI: E ' THE NEED TO ADDRESS SHORTCOMINGS AND THREATS AND TAKE A REALIS'i !C APPROACH TO GROWING THE CITY (CONT'D) even the City's greatest boosters must recognize that there are limits to what any economic development effort can 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 course, 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 • • 9 Demon - - - _ j January 1995 1 COWDENTIAL i PHH 11odusi Conwhint • • it" t i s 5 < a/~T? .(v ttSa ~~.~1jrt,l~~ <4 V • a~ • • PHOTOCOPY r , v ! e)v ti ~~~'~~6~~~~v~IAv@~i v iv i, JCtlW~1 ! v at•iv ~~A E ~a vN'velU v~ v qq !9! t!'}!~o Z' j a ~ t 3 c e A1• E$' ',rL F v 5~ l;i F~~~~1t ~f~ its ~n 7 t'Jav ~v i,tit t ~I~ ~ ~ ~ 0 w 1 `t r= 3 e • J Denton _ January 1995 CONFIDENTIAL 12 PAIN Famus Consultift • w • • Strategic Recommendations. i 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 pubii ; sector leavers involved in,economic development, with a foundation for futu a 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 solidity Denton's future • 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 e - Provide specific strategies for building on Denton's strengths and addressing particular weaknesses and Issues e • Denton - Y. _ Janvary 1995 CONFIOENTIAt. t t P"H F•ntus Combing ~ • Q • ■ r r• to • a a 7a ar a ~ 7 a r Sliate is Fecommendelions OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINTS: • Revamp the economic development program through establishment of a new organ izationa I structure, the raising and expenditure of more money, setting appropriate expectations and managing to them, and a focus on brand-building • 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 • 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 • Better leverage of the assets that most distinguish Denton from competitor locations --its institutions of higher education and its university city setting and environment i • Enhance the Denton product by, among other things, improving infrastructure, especially available sites and buildings, that will assist with the attraction of new business, and developing an ongoing process by which Denton's business and public f sector leaders can work in a coordinated fashion to auvance the interests of the whole community rather than allowing personality conflicts and other counter- productive phenomena to interfere with appropriate growth } • e k i f)enlon - i January 1995 CONFIDENTIAL I4 PHH Fantus Consulting • O 1 R • r_ t a t : t r r r t r t r r.~ t~ t r~: ~ s.~ ~x r~ ; Strategic Recommandstions _ OUR RECOMMENDATIONS RELATE TO THE FOLLOWING MAJOR POINTS (CONT'D): • Ensure that Denton'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 I~ • s • t)enton January 1995 COWIDERTIAL l5 PHH Fanlus Coatnhh4 • CIA • • P, strete Ic _J Recommendations 1. DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO } MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH , a • Denton's current economic development program, a coordinated effort between the ? Chamber and the City, has served Denton well, particularly in performing traditional f functions such as hosting prospect visits and attending trade shows • Certain aspects of the current program are not conducive to success the twenty- voting member Board, with additional ex-officlo members, is unnecessarily large f 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 unavailable to the program 1 • 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 i • 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 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 Denton January 1995 CONFIDENTIAL 16 PHI! F'nntus consulling 1 • 0 • ca • s 1 ( 1 r I l 1 i d ( f t f i t 1 4 1 S991-nic Recommendallons ...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH (CONT'D) significant portion of the community would probably be satisfied with minor changes. I I To accomplish Denton's goals, certain principles should be established as the foundation for this effort: • 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, 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 f creating conditions conducive to their expansion, In the context of the brand management approach to be discussed later, an account management system must • be put into place. • Inclusion of all elements of the community in the economic development process will maximize the chances for its success j! i • Attendance at trade shows and traditional advertising should have a limited place in • ° Denton's overall economic development campaign January t995 COWIDENVA! 17 PHH Fanlus Consuking • - O ♦ s I 1 1 1 1 1 1 d' I d d i. 1 T I. i Q df".'~ •.'3i dx71 1~ d~ ; Strategic RacomnwdaWna... ...DENTON'S ECONOMIC DEVELOPMENT PROGRAM SHOULD BE REVAMPED TO MAXIMIZE THE CITY'S OPPORTUNITIES FOR SHORT AND LONG-TERM GROWTH (CONT'D) Key Question: In order to address Denton's key weaknesses and strategic threats, and hest position the City for strong growth, how should Denton approach economic development? • e ben[on January 1995 CoNFIDEN11AL la PF111 FaMua coeaaking • m • • Strategic Recnrnmendalions 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 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 (e.g. Coca-Cola, McDonald's) are associated with products that provide strong benefits to customers, help to genorate interest (attraction) and, if properly managed, sustain loyalty (retention). Brand interest is generated through customer identification with the benefits a product, such as the Silicon Valley, provides Brand loyalty results 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 strategies of brand management for Its own use, which will • require a shift of perspective and building on some components of the existing economic development program s Oentoe January 1995 CONFIDENTIAL 19 PHH Famus coneukiog • 4 - • ca • I I ! I I f I r f r l ! f : S :~'w RW W-Svelegic Recommendations A H DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS -rO HELP ENSURE LONG-TERM ECONOMIC DEVELOPMENT SUCCESS(CONT'D) r r i • To compete successfully against other cities inside and outside of Texas, Denton ; must define, among other things: - What it wants to be 3 - Who its primary customers are - What will motivate these customers • The site location marketplace has hundreds of organizations (suppliers) competing primarily on price for a relatively small universe of customers 1 • By treating itself as a product and brand to be managed, Denton can begin to build a differentiated position that helps to ensure the now of capital investment Into the 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. t • Differentiating products from each other is the way to gain competitive advantage in the aftractinn of companies i • d - Differentiation is the process of identifying and needs of market segments and using hisd information to distigtuish atproduct from its competition Uenlon January t995 CONFIDENTIAL 20 Pli!! F•Mus Consulting • w ,I btratoolc Recommendations.. ; i DENTON MUST ENGAGE IN A BRAND-BUILDING PROCESS TO HELP ENSURE LONG-TERM ECONOMIC DEVELOPMENT SUCCESS{(oONT'D) P Both development and implementation of the differentiation strategy must be carefully managed or the effort will fall so Positioning must be meaningful to the customers you are trying to attract 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 e e • Oenlon January 1995 CONFIDENTIAL 21 PHH Fdkm canwkift S t t r t / t• rd htt r rd • w • e Strategic Recommendations t i i DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS i 3 • The model of private/public cooperation that now exists is a solid foundation for future efforts in that it recognizes the need for buy-in, and the potential value of contributions, from different segments of the community. However, the current structure is too unwieldy and the roles too undefined to achieve the maximum positive results for Denton. • PHH 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 j creating new job opportunities I • Under 4A of the Development Corporation Act, Denton could impose the tax, after • receiving voter approval, for a wide range of possible activities. Possible approaches, already tried by other Texas communities, include purchasing land, building, and equipment and paying principal and Interest on debt. One likely use of available funds by Denton would be for development of a business park. L ® 0 } llllldlY Il'1'CONIIDENrIAt i 22 PI111 Fontus consulting 0 0 Q • • Representative Economic Development Organizational Structures 4 Paducah. Kentucky: The Economic 1h:velopment Council has its own board and funding stream but is officially a committee of the local Chamber of Commerce. The Council receives funding from both the public and private sectors and has public and private representatives on the board. The Council purchases administrative services from th,. Chamber, and the Chamber provides secretarial and accounting services. ;s 0 Aurora, Illinois: The city established a 9-member commission which is part of city government t but a form of public/private partnership, receiving funding from both sectors. The commissioners a are appointed by the Mayor but a certain number ol'positions must be tilled from a list submitted by t the Chamber of Commerce. The city and Chamber of Commerce each agreed to provide 50% of the conunission funding. I Eugene/Springfield, Oregon: A free-standing not-for-profit corporation was established drawing funding. and board membership from both fhe public and private sectors. e i• J I I f I I I 1 I I ~ ~ I I ( ! ( f t I t! ~ 1 P 1 • • • r s r y r : a a a a o a w r; Strategic Recommentlalrons 1 r 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 t 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 y and programs. • Although use of the sales tax proceeds would result in heavy public funding of the 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 S 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 'z e needs of a city. The key for Denton, regardless of the structure chosen, is to have a better-defined, better- ; funded version of the current structure, that merges the interests and strengths of the public and private sectors tecrnon Jarwary 111W, CORROMIAL 21 PMFI F•ntus ConsullinR • • • Sample Texas Community Economic Development Organizations (from 1994 study by Toles, Economic Development Council) Pon. Served Annual E.D. Percent Public E.D. Sales Tax Over. Budeet Fundira Galveston ED 59,000 $207,000 0.0% No Longview ED 73.000 $772,427 100% 1/4 McAllen ED 850000 $700,000 100% No San Angelo 85,000 $230,000 37% No Chamber Temple ED 50,000 $582,000 100% No Victoria ED 77,004 $215,000 40.2% No i • i. • 4,3 • Strateale Recommendations DENTON MUST ESTABLISH AN APPROPRIATE STRUCTURE FOR IMPLEMENTING THE BRAND MANAGEMENT PROCESS (CONT'D) In thinking about the structure, attention must also be paid to the necessary budget for the Economic Development Corporation, Based on surveys done by PHH Fentus Consulting and other organizations in recent years, certain guidelines have developed. Economy development organizations serving communities of less than 75,000 people have an average budget of $167,000 while those serving communities of 75,000 to 300,000 people have average budgets of $371,000. On a per capita basis, a community of Denton's approximate size should have economic development expenditures of approximately $2800 per 1,000 residents i • On the facer page, we have listed, for purposes of comparison, the most recently available budgets of Texas communities that are comparable to Denton In terms of size, There are many li variables that affect how much a city can spend but It Is worth noting that all of these competitors are spending more than Denton. • • e Denton January 1995 CONFIDENTIAL 24 Plitt FMHVI Cm Rhin 0 c~ 0 • s u a s s ;t a ~ ~ ~ 3 d ~ ~ w ; ;rr -~r,~> ~rt81ratc ix, c Rccomnkndalions_. a WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES: • Leading the effort to develop an effective economic development strategy - Focusing on keeping existing business in Denton - Adopting the brend management process, defining market needs and critical issues and addressing them - Determining the level of funding needed to support the economic development effort and securing the funding • Coordinating enhancement of the Denton product to raeet the needs of businesses, Given the current situation, this could involve: Conceptualizing a business park, perhaps based on the STARTEC vision, and Identifying an appropriate financing mechanism Working with the Texas Highway Department to add a new entrance/exit ramp on 135E dear the Municipal Airport - Supporting development of a one-stop permitting process and/or creation of an ombudsman position to ensure cooperation with business - Developing an appropriate Incentives strategy that will help meet Denton's needs e and be meaningful to the kinds of businesses Denton decides to target ' a l7enton January 1995 COWIDENTIAL j 25 PI III Vonw$ Consulling • p • • .R Strategic Recommendations. .1 'Y WITHIN THE BRAND MANAGEMENT FRAMEWORK, THE ECONOMIC DEVELOPMENT CORPORATION WOULD PLAY MULTIPLE ROLES (CONT'D) • Involving top business executives and government officials in the brand- building process Identifying important Issues businesses face and exploring ways the Economic Development Corporation can help to address them - Working with business to define and prioritize Infrastructure, regulatory, and other i needs • Building a differentiated position In the marketplace Positioning Denton in a way that is most meaningful to the businesses Iikef to consider locating In the City - Developing a promotion strategy that targets specific markets • Building an ongoing strategic planning process within the Economic Development Corporation that anticipates and analyzes developments that • effect Denton's competitive position E • e Demon- - ~ January 1995 CONEIDEN11AL 26 Plfff Fantus Co"Al"I • 0 w • • r r t c t 1 1 c 1 c r i i t r y t Strategic Hecommendeihms -'I 1 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 • The Economic Development Corporation must establish 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 govemment agencies r and other institutions (e.g. universities) with a stake in helping business succeed in Denton - Must provide information that is meaningful to customers. For example, for businesses with export potential, the Economic Development Corporation can 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 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 Uenrun January IJ95 x, . CONFIDENTIAL 27 Poll] P•nwe consulting j • 0 • X11 Rim M Strat w Recommendalions 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 (CONT'D) In addition to account managers, an ombudsman or similar position should be established with responsibility for serving as intermediary between Denton municipal regulatory units and prospective investors (see later discussion) • The internal system of resources should be continuously adapted and improved to ensure that each resource is designed to most fully support the account management effort • January 1995 COWIDENiIAL 211 PHH Famuw Consuhinf d r ,a • a • • 9719 WV s r strel is R•commendellons_ THE ECONOMIC DEVELOPMENT PROGRAM MUST ENHANCE THE DENTON PRODUCT BY, AT A MINIMUM, ADDRESSING SEVERAL CRITICAL ISSUES: • Developing a brand image • Strengthening connections between Denton and Its universities • Improving business/public sector relations and the regulatory environment • Enhancing existing Infrastructure • Maintaining a quality workforce • of • J Oenlan January 1995 CONFIOEk~IAI 29 PHH Fm(w Canuftki • • "~`f Ail a ire: S I3 rNr ~.;1~ f Su/rF•, r'{ r. q • Q • X t4 a s a a a 9 a I $ S Strategic Recommendations { 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 3 anything outside the Metroplex, 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 reflects some reality about an area, even if not the entire story - 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 competitor locations with a positive image j - Image is based on both controllable ano uncontrollable factors, Including: noteworthy business success stories (controllable) successful civic initiatives (controllable) S • climate and geography (uncontrollable) • t January 095 CONF IDEN f IAL 4 { to Pill] Fintus Confaulling r as • • ~ ~ 1 1 1 I I I I f I i [ I ! i _t f .._I +t.....# Tt>r;ti^ ; Strategic Recommendations. CONTROLLING PERCEPTIONS OF DENTON IS CRITICAL TO THE ATTRACTION AND RETENTION OF INVESTMENT • The underlying product must match the image being marketed • Denton will have to make "external" Improvements, which relate tj how the city is presented to investors • Denton will also have to make "intemal" Improvements, which enhance the actual product Key Questions: 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? • • • Denton '-''"____v-__--_-..- _ Janueiy 1095 CONFWEMtlAL 31 MHH PMNtu Ca""Wil 1 1 ( 1-0 rr a 0 • is 7 I Strategic 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 - Encourage local public officials/citizens/business leaders to actively seek appointment to appropriate policy-making or representative bodies in the • Dallas/Fort Worth area - Make effective presentations, in-person and through written materials, to the Dallas Chamber that highlight Denton's brand Image and distinguish the City, in ? the minds of key Chamber staff, from other Metroplex communities - This effort should involve the Economic Development Corporation's Board and staff, as well as other interested community members, and can begin even before o ° the new structure is in place - Explore ways in which UNT's School of Community Services' Involvement In ;j Melroplex issues can be used to showcase Denton (lenlUn _ ~_r.__. January 1995 CONFIXNTIAL 12 Pill] Panlus Consulting • s,+ ji Slreleglc Recommendations_ ` PHH FANTUS CONSULTING RECOMMENDED STRATEGIES--BRAND IMAGE ENHANCEMENT (CONT10) • Increase Denton's overall visibility Leverage UNT's intercollegiate sports participation in the NCAA through an infomorciai that could be produced and shown during NCAA broadcasts, targeted advertising in communiMes in which LINT teams will perform, etc. - Target media advertising once the economic development program has segmented the market and determined the kinds of businesses that should be 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 benlan January 1995 CONFIDENTIAL PH" irs"M COMWNWV • 4 O c~ 0 0 ! ! ! I I I I I f f I 3 + , , f S ~Slreleglc Recommendalions 4. LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR PROFILES • 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 oportunities, serve as a lure to potential residents, and help solidify the City's brand i, -:ge. The Economic Development Corporation can also help enhance the respective Images of the 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 benefiting the universities • Companies often prefer to locate in university towns for a number of business-related reasons: - For technology-intensive companies, universities' technological resources such as f research, equipment, and labs, can be all-important, This Is especlal!v true for start-ups and smaller companies that cannot afford too many initial expenses. - College libraries can provide research services and information on a wide range of i industries, and professors frequently offer services as consultants o J - The educated labor force can benefit businesses in many ways. New graduates Qentnn January t9o5 CONFlDENI IAL 34 PITH FRntus Consulting f 0 , •rrrrr~r e r • I I I f I I I i f { I I I i ! r 's i i Strategic Recommendations . LEVERAGING ITS INSTITUTIONS OF HIGHER EDUCATION WILL DISTINGUISH DENTON FROM METROPLEX, AND MOST OTHER, COMPETITORS WITH SIMILAR 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 L; temporary labor and interns. • Many corporate locaiion decision-makers are attracted to communities with 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. E • The mere 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 I 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. 9 • The universities also give Denton an opportunity to Include customized training, one of the most sought-after incentives, to businesses considering relocation to Denton, e well as existing businesses that might otherwise have to move to obtain the skills needed for their operations. oenlon January 1995 CONFIDENTIAL 15 P"" Fentus Consulting • c~ • • . r a r r c t 1-1 VA 17 3 971 9'2 an f . Strategic Recommandatlons... 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 institutlons of higher education work cooperatively to their mutual benefit? • neW on- January 1995 COWMENVAL 76 PH" Frgw CoawkWe • ~ fir, J ~<~!l ri,r A w • • t 1 1 4 1( i i f I 1 f I l 1 i I t D D mustrat Ic Recommendallons . 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 must be Instituted, Underlying these activities should be the principle that the City and universities can benefit each other. - 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 universities In their student/faculty recruitment effort that may be applicable to Denton as a whole • Institute a joint economic development effort with one or more of the Institutions • NTRI could serve as a linchpin for such an effort with UNT, given its stated mission of enhancing the University's interactions with the business community Oenlon - ; Janvary 1995 CONFIOERUAL 17 PNII F•ntut conking • w e t_ it ~ rt _ e ~ r r a- r t : r t a ~ u ~ arse : shat is Recommendallons_ PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONT'D) - 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 existing university strengths or areas In which the university would like to move. Ultimately, businesses will want to see the advantages provided by the university presence i - One example could be leveraging UNT's excellent accounting program to lure back-offices of major (accounting firms and corporations - Gons!aeration can be given to establishment of a university-related research 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 experts/labor • Consider TI facility (if not otherwise occupied) or other available land as a possible center for this effort Uenlon January 1995 CONE 10EN i IAL JB PHH Fanrus emsukiat it • am • M.Sirelegic Recommendations PHH FANTUS CONSULTING RECOMMENDED STRATEGIES STRENGTHENING CONNECTIONS BETWEEN DENTON AND ITS UNIVERSITIES (CONrD) • Design a public relations program that simultaneously enhances the universities' respective images and Denton's brand Image Include major references to the universities in new economic development materials created by the Economic Development Corporation, especially regarding the top-class 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 science, Into Denton e en._fn_._n __.__~__-___~r _ D January 1995 COWIDENVAL 39 PHH Finates Consukint v 0 • a a a a a a a : a a a a Q a a 3TP Vrm W Strategic Recommendations 5. 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 . 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. The tensions between City government and the business community have received significant attention from the media and interested parties. Based 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 far exceed the actual severity. • Our review of Denton's land use regulatory scheme indicates that It does not substantially differ from those of many other communities in Its approach or l objectives, although it may be more specific In the requirements Imposed on developers n • Real issues do exist. At the crux of the situation is the fact that key players In the • Denton business community strongly believe that the regulatory process overseen by Denton January 1995 CONFIDENVAL ao PHH Fnnlus contaHint • 0 , • • • f I ( 1 r I I S 19 t i f R~ w ~ 3f'~ x F ; ® Stralegic Recommendshons i' . 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 (CONT'D) staff, especially the Planning and Zoning Department, Is one of the major t, 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 elements of the existing situation should be addressed: - Personality Conflicts between 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) Some Metroplex-area developers have experienced excessive delays in accomplishing certain projects • • Denton Y January 1995 CONFIDENTIAL 41 PHH Fanlus Consulting 1 D 0 • twj • • h I I I I r : r r r r ~ , r r ; u w Slratepic Recommendations ESTABLISHING BETTER MECHANISMS FOR INTERACTION BETWEEN THE BUSINESS COMMUNITY AND PUBLIC OFFICIALS WILL BE CRITICAL TO IMPROVEMENT OF THE REGt LATORY ENVIRONMENT AND DENTON'S (CONT'D) • 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 • 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 work to ensure that the City's regulatory process does not become an impediment to Denton's future growth? )W111dry POP' CONE IM N I IAL 42 PIIII Fonius Cansulling i • c~ • • C'ompetitors' 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, :vith overall authority over every city agency even remotely related to development, including the parks and recreation, traffic, building inspection, and planning departments • A customer orientation, learned through informal interaction between managers and ~ staff, that prohibits staff from identifying problems in developments plans unless they I can articulate solutions that will help developers ultimately receive plan approval . Appointment of a Development Coordinator answerat,le only to the City Manager and Assistant 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 Hall in which they can leave messages that will be promptly returned by the Development Coordinators or municipal I staff that she specifically selects for each project e ~ • Adopting an overall problem-solving approach--ensure that projects meet minimum standards clearly established by law, offer added value by making suggestions to make projects better, and let developers know exactly what must be done to gain plan approval 0 G) 0 • 9 A ! S i f : I t _ ® SUaleglc Necommendal+ons PHH FANTUS CONSULTING RECOMMENDED STRATEGIES REGULATORY PROCESS a Establish an effective mechanism for continuing dialogue between city officials and business leaders regarding the regulatory process Utilize the existing Chamber Local Relations committee as a conduit for discussions or establish a new forum that includes top City and business officials. It is essential that th,- 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 regulationslordinances 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 Undertake a review of regulations/ordinances affecting the business community - keep in place those that serve the long-term interests of the community, Including beautification measures o - City managers and staff should undergo customer orientation training on both a o formal and informal basis there must be a major focus on customer service ~ j 41nud!~ 144'.1 COW Of nIlA1 41 PillI Fantus Consulting e • Competitors' Approaches 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 • 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 • A property 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 30-45 days of introduction E • I~ r r r rr r tr~ t~ r~€€€+ r+ r+ r€ r€ ~..,r r.~ • rr► • r- r.:. . r,+ r r-s V .J'.'4I iv ygr}'.i ~ 1 • , 1 1 1 1 1.. U. ff rtl K _ 1 0. 3 [ . ![6 AAt3~ Ir 6troteplc Recommendations PHH FANTUS CONSULTING RECOMMENDED STRATEGIES REGULATORY PROCESS (CONT'D) - The Economic Development Corporation should establish a one-slap 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 interactlon with City departments with which It has been difficuit for some businesspersons to work • January 1995 COWIDENTIAL 14 +'M Fanin Coookke s a • I t. ll! f^;r rV 4'-f 4Q4Y ~~!.l t'W Y~~jb~'1 ~~K~~~ • e> e • I I I I I E t r r r r r ~ a M r~ ~ Slrelegic Recommendalrons 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, i • Other infrastructure improvements are necessary to better position Denton for 1 growth: - The roads near Denton Municipal Airport must be increased in number and/or l 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 t e • As several interviewees noted, even if Denton makes the above infrastructure enhancements, rapid development will not necessarily follow. For reasons ranging front the availability of attractive inflll closer to Dallas to the perception of Denton as being outside the Metroplex, the kinds of development Denton seeks may still be e several years away. • Key Question What actions can be taken in the near term to strengthen Denton's infrastructure in areas of relative weakness? , coNrIDENIIAL 45 PFIH Franlus consulting e c~ 0 Slral is Recommendations PHH FANTUS CONSULTING RECOMMENDED STRATEGIES - INFRASTRUCTURE 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 Developrr;ent Corporation established under 4A The STARTEC concept of the Business City VISIONING workgroup provides a good starting point for development of the park i • 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 in Denton, Possible steps include: Personal contacts with landowners by prominent Dentonians, as part of a coordinated campaign, to make clear to them the v&lue (to them and the City) of establishing a market for their land a ws Periodic social/business events that could be sponsored by the Chamber and City fi e to which the landowners could be invited CON G I Uf N I IAI, 46 FHIi Fonlus consulting 0 O I t d d t t t 1 A 7 d Z S 9~ 1 Strategic Recommendations _ 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 • A new effort should be made to have the Texas Highway Department add a new exitlentrance ramp to 136W to Improve access to the highway for businesses located on Its wes0t:e-n side 3 • To alleviate road wngestion that may occur from establishment of new businesses or expansion of existing ones along the 136E corridor, Denton planners should begin considering road improvements and additions that may e be necessary, such as repair of Teasley Lane • A strong education program should be launched, In courdination with NTAC, to make Denton area residents aware of the adverse economic Impacts ant health hazards resulting from zontinuing status as a Moderate Non-Attainment a Area or becoming a Severe area e Expanded mass transit offerings can be considered. The STARTEC vision included construction of a monorail and, whether or not the business park ltpnton Jan,, ny ,!pus CONPOENTIAL I 47 Pilll Fanius Consulting • • i 9 ~ ff W7 Ian. ■ w. w ~ L ..A M-StraWgic Rwommendabons_ becomes a reality, such a transportation asset could bo developed, 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•proftt entitles to make payments In ileu 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 • • ~e be an- Januaryt985 ~ COWIDF NT IA . 4H Pllii Famw Conas~ting • 0 r i `Zr • - w • i ' t 11L,Rtegic Recommendelicns 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 labor pool is a relatively well-educated one that receives solid reviews from employers. I As a general matter, this will be attractive to businesses considering relocation to the area. I - 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 clearly exists for enhanced vocational eductation programs that go beyond the current adopt-a-school approach • I 1 e • 6e,41 - on Janvary 1995 CONFIDENTIAL 49 PH11 Fnntw Consohift { • • • z 1 Shale Ic Recommendations PHH FANTUS CONSULTING RECOMMENDED STRATEGIES LABOR QUALITY 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 fora,,eeable cutbacks in government funding and programs and with a relatively high percentage of Denton's workforce employed in the public sector, the • City may want to target training programs, offered in conjunction with educational institutions, at these employees to ensure their continl,ing employabllity 1 • The City and the Chamber should devote more energy to working with the Denton Independent School District on programs that train high school students for positions I • that local businesses will need to fill. Models for such interaction can be found In a • number of other jurisdictions. y I1Pn11111 January 199!, CONI'IOENIIAI. 5o Pill] Fantus CGnsulting • 4 ~ • • 1 1 ( 1_ ( 1 1 1 ( ; 1 ( y i Z S • Z Ira tlll!! 111 i ~'i 1 y r ~t~ V n zl7'9~ TMI, Action Items . q I t K j f'~ y yS~. IV, } is ~s n se r "f s S ~ 0 ~ v r'€t~e t asWf'~( S~~yyh~~S}ts~Y a ' G VFj y~ g9f''~TAt t~` ~',~f t~3 ry`rY2f d' t P r :,t 3. No M a • [7enlon January 1995 CONFIDENTIAL J 51 P1111 Fantus Consulting J 6lk • t<~ • o t e t l t r l r r l r y r,1Y Action Items IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS: J • Lay the groundwork for adoption of the economic development sales tax, Assuming a consensus r 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 other initiatives. i • While the election process runs its course, the current economic development projram 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). • Initial steps in 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, i efforts to define Denton's "brand" for the Metroptex could be worthwhile, However, since the analysis and targeting should drive decisions about the city's J positioning in the attraction/retention marketplace, it is important not to structure, or expend money on, programs that may need to be modified. I • A forum should be established for City-business dialogue. The group that convenes should be small i and, at a minimum, should include the Mayor and/or one or more City Council representatives, one or i e two business community representatives, and at least one representative from a higher education e 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. January 195 CONF I DE N I IAI. 41 Plill F•ntus Consulting • GJ O Action Items IN FURTHERANCE OF THE STRATEGIES ENUMERATED ABOVE, THE CHAMBER AND CITY SHOULD TAKE CERTAIN IMMEDIATE ACTIONS (CONT'0): • Discussions should be held with the City Manager and Planning and Zoning Director to reinforce the t 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 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 1 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 I necessary permits and approvals. Alternatively, or concurrently, the City Council and Mayor should consider establishing a position within Co government that is similar to the Development Coordinator position described earlier. { e • y / l I ~FR1 pfl January 199fi CONFIDENFIAI iJ 53 Pllll Pantos consulting i p 0 • ca • • d I I I 1 d I I I I d I i S w +a Action Items 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 bil left to the Board of the new Economic Development Corporation. • Identify existing businesses with the greatest growth potential, and those most likely to consider moving out, and have account managers work with them to ensure their continued contribution to Denton's economic well-being v - Work with them to ensure that there are win-win situations that can be publicized as examples of the support Denton offers its businesses • Perform a thorough analysis of manufacturing activity in Dallas, Tarrant, Denton, and Collin counties to identify which kinds of customers/suppliers of existing businesses are not presently in the Metroplex but would be useful for businesses to have present. Once this cluster analysis ha3 been completed resources can be applied to E • attracting those customers/suppliers. I • Target white-collar businesses for relocation to Denton - Define high potential clusters and target markets by industry, function, and company and by geographic location ® - Work with the Dallas Chamber to identify businesses planning to leave Dallas that s • might be persuaded to remain in the Metroplex by moving to Denton oenleo January 1995 CONFIDENTIAL t. 14 P1111 FrAntus Consulting • 0 0 c.~ • a r t r a 1 1 t r ~ r t r t r ~ : „ j Adion Items i WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONT'D) • Obtain market prices for the available parcels of land so as to be able to better market them i • Cement ties with the Dallas Chamber even if Denton's economic development program develops as anticipated, referrals from the Dallas Chamber will remain important I Begin developing a revised Incentives package that is consistent with the brand j 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 facility - Success in that effort will have symbolic value • - Work with NTRI and the universities to determine whether the facility can serve as the center for joint university/City economic development efforts • Begin positioning Denton to benefit from NAFTA-related trade Engage in selective advertising in media circulating In Mexico and the portion of o 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 Uanlon January 1995 COWIOEN11AL P' 5S P1111 Fantus Consulting t 1~1 • w • f A d."~ C[:~ 7111 f I Adios Item, WHILE A NEW ECONOMIC DEVELOPMENT ORGANIZATION IS BEING ESTABLISHED, CERTAIN ACTIVITIES SHOULD BE GIVEN HIGH PRIORITY (CONrD) Develop a spec distribution center either as a stand-clone facility or as part of a business park • e e Denton Jenwry 1995 COWIDERVAL rieie F.Ma, c~n~ o 0 i • • PHH FANTUS CONSULTING'S BRAND MANAGEMENT APPROACHTM t (1A) (a) Con4mmw (2) (3) (te) (6) 7 i Assesamant Defkalrieflne Product r eonomb Be" Brad Account Visbn fa Ana Enhancement Marketing Mau nt E (18) Analysis Mission Rawl" ObjectIves AHncflon Momw Gosis (40) SegmerNaNaNt (7) Results . (Cfusler Anslysls) PoaHlaNnp 14C)oy • Recycle • • 1 r i t [ / 1 f 1 " or It " IR a r IF-9 a M a# a I N's • a • • n, r... PiO I :,lN: 11 /1Jy-n S..rl.. ._ry n.. .v4 •a>w"..r . .,.minT'FnW..IM11 \11R.. Y.. r~ Jr-2 F,-V 1--,l V-3 1:1-11 :-.-a xm IM Action Items S 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 • 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 ultimately dictate the success of Denton's economic development efforts. • • Denton January 1995 COWIDENTIAI 57 PNII Nanias Coesuking y119ah . • M..... H n~•M.rY{.'IMW~PII'..' Y'11Pw. ..w ~ I • . a { ~i r 'i EE N I i i J i i 17 1 LEE ' I i