Item 16 -- ED Master Plan draftCITY OF SOUTHLAKE
ECONOMIC DEVELOPMENT MASTER PLAN
An Element of the Southlake 2035 Comprehensive Plan
Adopted by Southlake City Council
Ordinance No. 1157
Month Day, Year
Prepared by the
Planning & Development Services Department
Table of Contents
Section 1
Introduction
1
1.1 What is Economic Development?
2
1.2 Why is Economic Development Important?
2
1.3 Relationship to the Strategic Management System
3
1.4 Adoption Process
4
Section 2
Background
6
2.1 Demographics
6
2.2 Economic Profile, Strategic Location, Employment & Development Trends
7
2.3 Existing Business Conditions & Labor Force (Local and Regional)
9
2.4 Economic Development Plans & Studies
10
2.5 Existing Economic Incentive Policies
13
2.6 Situational Analysis (SWOT)
14
Section 3
Southlake Market
16
3.1 Target Industries
17
3.2 Business Resources
3.3 Southlake Market Recommendations
23
Section 4
Economic Incentives
26
4.1 Southlake's Appeal
27
4.2 Incentives
27
4.3 Preferred Incentives, Tools and Programs
32
4.4 Economic Incentives Recommendations
34
Section 5
Business Retention and Expansion
35
5.1 Business Climate
36
5.2 Partnerships & Alliances
36
5.3 Tools and Support for Businesses
37
5.4 Business Retention and Expansion Recommendations
42
Section 6
Citizen and Community Engagement
44
6.1 Promoting Awareness
44
6.2 Local Economic Educational Campaigns
45
Section 7
Implementation, Prioritization and Evaluation
46
7.1 Plan Evaluation and Implementation
47
7.2 Prioritization Schedule
47
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Introduction
The City of Southlake wishes to maintain a strong and healthy economy and has dedicated time and
resources to economic development which is identified as a vital city function in order to maintain the
strong and healthy economy. The Texas Economic Development Council (TEDC) has honored Southlake for
its commitment to economic development by recognizing the City for its excellence in economic
development practices in the state, further demonstrating that the City and the community consider this to
be an important function of the City.
Economic development is a never ending task. The local economy is constantly changing, as it is affected by
factors from within the community and from outside the city limits. After several years of substantial growth,
Southlake is reaching a point where available land to develop is becoming scarce with most of it located
along the State Highway 114 corridor. Along this corridor lies the challenge where full infrastructure is not
available and must be installed. This, coupled with the high cost of land in the City, will make the remaining
development to occur critically important and the City will need to consider each development carefully for
the long term economic sustainability of the community.
To sustain a vibrant economy with growing competition in the region,
Southlake must continue to focus on attracting top -tier businesses
while maintaining the health of its existing businesses. The City must
draw on its significant assets to attract desired development as it
competes within a growing field of competition, not just from
adjacent cities, but from the North Texas region as well. This means
becoming more strategic and deliberate in economic development
initiatives. This is where the importance of laying the framework for
the future of economic development in City should begin.
The City adopted its first Economic Development & Tourism Master
Plan in 2011. It has now been five years since its adoption and the
necessity for an updated plan is becoming important due to the
current economic climate nationally, regionally and locally. In May
2015, City of Southlake voters approved the City's first Type A
Economic Develo ment Cor oration known as the Communit
ECONOMIC DEVELOPMENT &
TOURISM STRATEGY
Prepared for the City of S..tl ke
p p Y
Enhancement and Development Corporation (CEDC). The purpose of
this corporation is to fund the development and operations of The Marq Southlake and promote economic
development. In creating this corporation, voters authorized reallocating a 3/8 cent sales tax from the
existing Crime Control and Prevention District (CCPD). Voter approval of this corporation further
demonstrates the community's commitment to sound economic development initiatives and the value it
brings the City, driving the need to reevaluate the master plan.
The plan identifies policies, programs and projects for implementation and development, and guides
funding decisions. The Economic Development Master Plan is divided into the following sections:
1) Introduction 5) Business Retention and Expansion
2) Background 6) Citizen and Community Engagement
3) Southlake Market 7) Implementation, Evaluation and
4) Economic Incentives Prioritization
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
1.1 What is Economic Development?
According to the International Economic Development
Council (IEDC), no single definition incorporates all of �; INTERNATIONAL
the different strands of economic development. ECONOMIC DEVELOPMENT
Typically economic development can be described in
terms of objectives. These are most commonly COUNCIL
described as the creation of jobs and wealth and the
improvement of quality of life. Economic development
can also be described as a process that influences growth and restructuring of an economy to enhance the
economic well-being of a community. In the broadest sense, economic development encompasses three
major areas:
Policies that government undertakes to meet broad economic objectives including inflation control,
high employment, and sustainable growth.
Policies and programs to provide services including building highways, managing parks, and
providing medical access.
Policies and programs explicitly directed at improving the business climate through specific efforts,
business finance, marketing, neighborhood development, business retention and expansion,
technology transfer, real estate development and others.
The main goal of economic development is
improving the economic well-being of a
community through efforts that entail job
creation, job retention, tax base enhancements
and quality of life. As there is no standard
definition for economic development, there is
no one strategy, policy, or program for
achieving successful economic development.
Communities differ in their geographic and
political strengths and weaknesses. Each
community, therefore, will have a unique set of
challenges for economic development.
The City of Southlake has strategies and
I 1
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priorities in place that will assist in further Southlake Town Square
development of a successful economic
development program. The strategies below were developed based on the goal and objectives of the
Economic Development Master Plan and the Economic Development Strategy Map, which is aligned
strategically with the City's strategy map, which can be found on page 4.
Enhancement of tax base
Improved business climate
Implementation of policies to meet
objectives
Recruitment of target industries
Expansion and retention of existing
businesses
Assistance in the startup of new
businesses
Strategic communication and
marketing
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
1.2 Why is Economic Development Important?
A healthy economy is the foundation of a livable
city. In Southlake, it is critical that a dynamic and
sustainable economic environment be fostered and
maintained in order to ensure healthy property
values (particularly in the commercial sector) and
sales tax revenue. A vibrant commercial sector
makes it possible to maintain a stable tax rate, meet
service expectations and even offer targeted tax
relief to the City's residents through tools such as
the homestead exemption, which with the adoption
of the FY 2017 budget will rise to 16%.
Southlake is an employment center in a region with Southlake Town Square
strong economic growth. Economic strengths also include a successful downtown (Southlake Town Square)
and a primarily affluent population with livability advantages that attract an educated population and talent.
However, these strengths may be a challenge as the region grows and other communities provide a similar
type of environment. To remain competitive, this makes the creation and implementation of a strong
economic development policy a higher priority in the coming decades.
As businesses face an increasingly competitive regional and global marketplace, new directions are needed
to sustain job growth and improve the economic environment. New land development approaches are
needed to improve local competitiveness in regional markets, including competitive economic incentives,
high quality office development, and creative zoning approaches. Business climate improvements should
be reviewed to keep regulatory burdens and fees competitive in the regional marketplace.
The world economy is a dynamic system. Southlake's economy will continue to change in response to
technology, social change, and global trends. Zoning and land use must respond to these changes. This kind
of local economic innovation will be key to Southlake being a significant player in the development of the
future economy of the North Texas region.
1.3 Relationship to the Strategic Management System
Strategic planning is an ongoing process where resources, critical concerns, community priorities and citizen
needs are combined to produce both a plan for the future and a measure for results. More specifically,
Southlake's Strategic Management System links the City's day-to-day activities to a comprehensive long-
term strategy for public policy and management decisions.
3
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
CITY OF SOUTHLAKE STRATEGY MAP
The City of Southlake provides municipal services that support the highest quality of life
for our residents, businesses, and visitors, we do this by being an exemplary model of
balancing efficiency, fiscal responsibility, transparency, and sustainability.
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The Strategic Management System identifies Strategic Focus
Areas and Objectives to guide effective and efficient resource
allocation and provides benchmarks to assess performance. The
Strategic Focus Areas and Objectives are driven by the City's
Citizen Survey and are outlined in City's Strategy Map shown
above.
The Strategic Management System guided the development of
the Southlake 2030 Vision, Goals and Objectives (VGO), which
define a desired direction for growth in the City. The first task
needed for the development of the Economic Development
Master Plan was to ensure the goal and objectives relating to
economic development were still relevant. As such, the
Community Enhancement and Development Corporation (CEDC)
evaluated the current goal and objectives and updated them as
necessary. All recommendations in the Southlake 2030 and
subsequent Southlake 2035 plans are tied to at least one
Strategic Focus Area from the Strategic Management System and
at least one objective from the adopted Southlake 2030 Vision,
Goals and Objectives. The recommendations from the
comprehensive plan elements guide the development of the
Capital Improvements Program (a five-year plan for the purchase,
construction or replacement of the City's physical assets) as well
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
as departmental business plans. In turn, the Capital
Improvements Program and departmental business plans
dictate the City's day -today activities and operations ensuring
the City is working to achieve the community's goals.
Further, the Southlake 2035 Comprehensive Plan assists the
City Council, Boards and Commissions in decision -making by
establishing a blueprint for the City's future. For example, the
AL CEDC and City Council will use the
�®� Economic Development Master Plan
I to evaluate initiatives and requests
A®S P I N ®k related to economic incentives, new
developments and policies related to
economic development to assist in
® determining the community's needs
and goals. Using the plan as a guide
helps to secure the community's vision for economic vitality.
1.4 Adoption Process
The Southlake 2035 Economic Development Master Plan
Committee, which consisted of the appointed CEDC
members, oversaw the development of the Economic
Development Master Plan.
As mentioned previously, the first action taken in the
adoption of Economic Development Master Plan was to
reevaluate the existing goal and objectives as it related to
economic development. The committee met and discussed
the language and updated it as necessary. The goal and
objectives are critical because they establish the foundation
for the recommendations within the master plan. The goal
and objectives for this plan are illustrated to the right. Using
this as a foundation, the committee then developed the
recommendations for the plan.
Overall, the committee held three public meetings between
February 2016 and June 2016 to discuss, review, and develop
the recommendations for the plan. All of these meetings were
open to the public and advertised on the City's website. Once
the plan was complete, the committee forwarded the plan to
the Planning & Zoning Commission for consideration and
recommendation and ultimately to City Council for
consideration and approval.
A Southlake Program for the Involvement of Neighborhoods
(SPIN) Town Hall Forum was also held to solicit public input.
The forum fosters open and timely communication between
Objective 6.1- Promote the City both
nationally and regionally as a great place
to live, work, visit, shop and recreate.
Objective 6.2 - Provide necessary,
desirable and diverse goods and services
for residents of the City.
Objective 6.3 - Foster an environment
that retains and supports existing
businesses to ensure the sustainability of
our existing tax base.
Objective 6.4 - Attract desired businesses
to ensure economic growth as well as
continued employment and services for
residents of the City.
Objective 6.5 - Enhance the quality of life
for residents and the sustainability of
City business through the promotion of
the tourism, convention and hotel
industry in the City.
Objective 6.6 - Develop a clear and
understandable incentive policy that
accomplishes the business attraction
and retention goals of the City and is
based on factors such as job creation,
investment, quality of business, return
on investment and overall value to the
community.
Objective 6.7 - Foster communications
between the public and private sectors
5
- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
the citizens and city government regarding programs and issues affecting the quality of life in the
community, encouraging positive relations and a stronger sense of community.
In addition, both the Planning & Zoning Commission and the City
Council held public hearings for the Economic Development Master
Plan prior to adopting it as Ordinance No. 1157 on Month Year.
In summary, the approval process for the Economic Development
Master Plan was as follows:
Reserved for CEDC
1) Economic Development Master Plan Committee meetings Meeting Photo
2) SPIN Town Hall Forum
3) Planning & Zoning Commission recommendation
4) City Council 1 st reading
5) City Council 2nd reading (final plan approval)
6
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Background
Southlake is located in North Central Texas, situated 23 miles
northeast of Fort Worth and 25 miles northwest of Dallas.
Dallas -Fort Worth International Airport is only a few short
miles to the southeast, and Lake Grapevine borders the city to
the north. State Highway 114 runs diagonally through the
middle of the City, heading east through Las Colinas and into
downtown Dallas and west toward the Alliance Airport
corridor. This corridor, along with Southlake Boulevard (FM
1709) and Davis Boulevard (FM 1938), are the primary
roadways that help fuel the City's economic success.
The City of Southlake today consists of approximately 22
DBNTON
SOUTHLAI«
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FORT WORTH ARLINCvTON DALLAS
square miles of land and just under 29,000 residents.
Southlake has grown and become a premier community in the Dallas -Fort Worth metropolitan area. The
City's dedication to quality development, sound fiscal policies and effective strategic management has made
it an exemplary community. In order to continue this level of quality of life, it is important to have a plan for
economic sustainability to meet the needs and demands of Southlake's residents now and in the future.
Although there are numerous existing plans, policies and programs that help in supporting economic
development, the CEDC and the City Council recognized the need for consolidating these policies and
programs into one cohesive document. The following sections provide a framework for the plans, policies
and programs which serve as the foundation for the development of the Economic Development Master
Plan.
2.1 Demographics
According to the US Census Bureau, the Dallas -Fort Worth -Arlington Metropolitan Statistical Area is the
fourth most populous in the country and the most populous in the state. In 2014, the Metropolitan Statistical
Area was also the second fastest growing area in the United States after the Houston region. From 2010 to
2014, the region added nearly 400,000 residents. Forecasts project that these growth trends will continue
through 2040.
30,000
25,000
20,000
15,000
10,000
5,000
0
Southlake Population
28,412
12,000,000
10,000,000
8,000,000
6,000,000
4,000,000
2,000,000
0
1980 1990 1995 2000 2005 2010 2016
(est.)
--*--Southlake Population
DFW Metroplex Population
10,676,844
6,417,724
1970 1980 1990 2000 2010 2017 2040
(est.) (est.)
tDFW Metroplex Population
F
- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Southlake experienced rapid population growth between 1990 and 2000. There was a 205 percent increase
in population during this time period, among the highest in Texas. With economic recession and less land
available for residential development, this trend slowed significantly between 2000 and 2010. However,
both residential and commercial development activity has increased steadily since 2010. The ultimate
buildout population, estimated at 34,188, which should be reached by 2035.
2.2 Economic Profile, Strategic Location, EmDlovment & Development Trends
Southlake Town Square is seen as the heart of the City of
Southlake since it opened in 1999. Town Square and its
surrounding retail complexes such as the Shops of _
Southlake and the newly built Park Village is the primary
commercial core for residents of Southlake. There are -
approximately 115,860 people living within a five mile
radius of Southlake Town Square. In comparison, typical
American suburban shopping centers have an average of _r
150,000 people residing within five miles of their
location, due to higher density development. Lower
population density can lead to more reliance on shoppers , -
from outside the city to capture spending dollars. This in
turn makes the development of this master plan along with the Tourism Master Plan critical for Southlake's
economic success.
Businesses from many industries including healthcare, technology, hospitality, legal and financial services
have come together to make Southlake a full -service business community for all of north central Texas. With
approximately 3,600 employees, Sabre, home of Travelocity.com is the city's largest employer and Verizon
Wireless' Network Control Center takes advantage of high-tech infrastructure to manage all wireless
communications west of the Mississippi River from its Southlake location. A newer regional corporate
campus for TD Ameritrade, a Fortune 1000 company, was recently approved by the City and is expected to
be open in 2018 and bring an additional 2,000 employees, making it one of the largest employers in the
community.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
SOUTHLAKE OVERVIEW
.. Office and DFW Office and -
Taxpayers (FY 2016) Retail • Overview*
•Verizon Wireless E" -Total existing office -Office space vacancy
space: 3,184,001 sq. rate: 13.9/0
• Town Square Ventures feet • Retail space vacancy
LP rate: 6.1 %
• Southlake Town
Square Grand Avenue
LP
• Southlake Land
Holdings, LP
• Wyndham Properties,
LTD �l
• Office space vacancy
rate: 18.5%**
• Total retail space:
3,904,048 sq. feet
• Retail space vacancy
rate: 4.2%
• **The Vista at Solana
represents a significant
portion of the vacancy,
with 380,000 sf available
*Office and Retail data provided by CoStar
Growth in the region's employment plays an
important role in forecasting population.
Regions with job growth retain current
residents and attract new ones moving to the
area for employment opportunities. City
Planners use this information to forecast
future revenue streams for projects and
determine areas that will need additional
infrastructure. The region's employment
forecasts show that employment
opportunities will continue to grow, leading
to long-term economic growth and vitality in
North Central Texas.
North Central Texas is a major economic,
social, and political center of both Texas and
the United States. Job growth continues to
flourish in the region and state. The North
Central Texas region represents 30 percent of
the state's gross domestic product. The
region is also home to 18 Fortune 500
companies. From 2000 to 2013, the number
of employed individuals in the region
increased by 24 percent. The economy is
central in supporting this growth because it
allows forjob growth and luring more people
into the region. Understanding not only
population growth, but employment growth,
is critical to transportation planning and to
providing the best system to move people to
and from jobs.
• Strong City Bond
Ratings
• "AAA" from Standard
and Poor's
-"AAA" from Fitch IBCA
• 8.25% total sales tax
rate - includes 0.5% for
parks, 0.375% for
economic development
and 0.125% for crime
control district
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Exhibit 3-6: Forecasted Employment
Growth by County, 2017 to 2040
County
2017 Employment
2040 Employment
Growth
Collin
542,493
762,920
220,427
41%
Dallas
2,147,027
3,197,475
1,050,448
49%
Denton
298,071
445,070
146,999
49%
Ellis
68,913
96,872
27,959
41%
Hood
23,703
29,448
5,745
24%
Hunt
45,548
70,099
24,551
54%
Johnson
75,452
105,198
29,746
39%
Kaufman
46,312
64,040
17,728
38%
Parker
62,665
80,404
17,739
28%
Rockwall
39,879
53,372
13,493
34%
Tarrant
1,196,521
1,739,327
542,806
45%
wise
37,651
47,224
9,573
25%
Totals
4,584,235
6,691,449
2,107,214
46%
Source: NCTCOG 2040 Demographic Forecasts
9
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
The North Central Texas Council of Governments forecasts employment growth to ensure that
transportation facilities provide the region's residents with access to jobs. Employment within the 12-county
MPA is projected to increase 46 percent from 4,584,235 jobs in 2017 to 6,691,449 jobs in 2040. During the
same period, the average employment density in the region is projected to increase from 508 to 742 jobs per
square mile.
The highest increase in the number of jobs is projected to occur in Dallas County with 1,050,448 new jobs for
a growth rate of 49 percent. The second -highest increase is projected to occur in Tarrant County with
542,806 new jobs for a 45 percent increase. Hunt County is projected to have the highest rate of
employment growth with a 54 percent increase.
2.3 Existina Economic Conditions & Labor Force
The City of Southlake is fortunate to be located
within the Dallas -Fort Worth region. Being located in
this North Texas region provides the benefit of being
in one of the strongest and fastest growing
economies in the country. For all of 2015, Dallas -Fort
Worth employment grew 3.3 percent, outpacing
both the state at 1.5 percent and the nation at 1.9
percent.
The Dallas Fed (Federal Reserve Bank of Dallas)
produces business -cycle indexes for Texas and its
major and border metros to help gauge the current
state of the economy. The metro indexes are
constructed using payroll employment, the
unemployment rate, inflation -adjusted wages and
inflation -adjusted retail sales.
According to the Dallas Fed's metro business -cycle
indexes, overall economic growth has remained
strong in Dallas and picked up in Fort Worth. The
Dallas index grew an annualized 5.6 percent in
December of 2015 following an 8.6 percent jump in
November. The Fort Worth index rose to 6.3 percent
in the same month after inching up 0.7 percent a month earlier. In 2015, the Dallas index climbed 7 percent,
while the Fort Worth index increased a more modest 2.4 percent, thanks to continued job creation and low
unemployment.
In 2015, home sales increased to 4.8 percent in Dallas and 7.4 percent in Fort Worth, stronger than the state's
3.2 percent rise. In Southlake, home sales remained strong with a 9% increase in the average sale price
($748,525). Home inventories in the region remained tight at year-end at two months' supply in Dallas, 2.2
months' supply in Fort Worth and 3.4 months' supply in Southlake. The strong demand and a limited supply
have continued to spur residential construction all over the region, including Southlake. Through November
of 2015, single-family housing permits in the region were up nearly 26 percent over the same period in 2014.
Southlake experienced a 38% increase in residential permits from FY 2014 to FY 2015. With employment
continuing to grow, the local housing market is expected to remain strong.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Unemployment rates
' 5.6
United States
5.1
Dallas -Fort
J 4.1
Worth area
3.8
3.7
Collin Co.
3.5
43
Dallas Co.
3.9
3.6
Denton Co.
3.4
4.1
Tarrant Co.
---�
3.9
0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0
4 Mar-15 ■ Mar-16
Source. U.S. BLS,
Local Area Unemployment Statistics.
Unemployment in the Dallas -Fort Worth area is one of the lowest in
the country and has been declining since the start of the recovery
of the recession less than a decade ago.
In Southlake, unemployment is slightly less than Dallas or Fort
Worth (3.5% in FY 2015) adding to the already strong local housing
market even further.
2.4 Economic Development Plans & Studies
As mentioned earlier, this plan was developed as an
update to the Southlake 2030 — 2011 Economic
Development & Tourism Master Plan. A number of
studies have been conducted since the adoption of
the 2011 master plan that assisted in providing a
more comprehensive view on the local Southlake
market with important and strategic considerations
being recommended within those studies.
City of Southlake Retail Analysis Stud,,
In 2014, the City contracted with MXD Development
Strategists, Ltd. (MXD) to conduct an analysis of the
existing and future retail environment of the
community to help determine the likely future retail
market conditions in the City given changing
11
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
demographics, shifting development patterns, emerging shopping trends and competition.
MXD conducted research between April 2014 and July 2014, to gain a firm understanding of the existing
retail, office, economic and real estate market conditions in the Southlake area and DFW Metroplex.
The purpose of this research was to understand what is the reasonable amount of retail (square footage) the
City can support by types, given future market and demographic trends, future shopping habits and
expectations, as well as competition. Furthermore, what types of retail are underserved in the City, what is
the trade area served by various categories of retail, and what types of retail are supportable long term and
should be attracted? To fulfill this primary objective, MXD performed a retail supply and demand analysis,
among other analyses, to come to a conclusion and recommendations. Additionally, as the retail study
showed a reduced future demand for retail development in Southlake, MXD also completed an office
analysis to understand whether office space or other land uses would be appropriate in place of retail
moving forward.
As a result of their work, MXD identified possible target industries which are shown in the graphic below.
MXD Recommended Target Industries by Target Market
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
The findings of the report can be broadly summarized with five key recommendations that were taken into
account during the development of this plan. The five recommendations from this analysis were as follows:
MXD Retail Analysis Study Recommendations
City of Southlake Economic Cluster Analysis Study
In the same year, and upon completion of the Retail Analysis Study, it was determined that a more specific
study aimed towards some of the specific findings of the original study was needed. A new study was
conducted that more thoroughly investigated the niche clusters identified in the previous. MXD
conducted research between August 2014 and November 2014, to gain an understanding of three identified
economic clusters: medical, culinary, and the performing arts.
The purpose of this research was to analyze the three clusters in greater depth, understand how these
clusters are currently performing in the DFW Metroplex, and determine the gaps or emerging niches that the
City of Southlake could capitalize on. Additionally, the study looked at how these economic clusters can act
as tourism drivers in the Southlake market.
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- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
MXD first conducted a regional market and local market overview to understand the shifting demographics
in the region and in Southlake. They also studied the economy of the DFW Metroplex, the emerging
economic clusters, and what core industries/sectors provide the highest room for growth moving forward.
Coming out of this analysis, it was determined that the top three sectors that have the highest viability in
Southlake are Health Sciences & Medical, Professional Services, and Information & Communications
Technology (ICT).
MXD then performed a tourism overview for the City of
Southlake, examining tourist attractions in Southlake, as
well as those in the neighboring communities such as
Grapevine which has a very established tourism base.
Employing survey data that was provided by the City of
Southlake, a visitor profile was created for the average
Southlake visitor. Ultimately, the average Southlake visitor
is between the ages of 31-50 years of age and most likely
has children under the age of 12. Visitors are typically
from a surrounding community within 10-20 minute drive
from Southlake, visiting for the day and arrive by private
vehicle. The primary reasons to visit are for an event such Barnes & Noble —Southlake Town Square
as Oktoberfest or Stars & Stripes, or to shop at Southlake
Town Square. Creating this visitor profile allowed MXD to comprehend the tourist market that the City of
Southlake is likely to capture. Findings from this portion of the study will be used in developing the
Southlake 2035 Tourism Master Plan.
Figure 3.14 Trade Area Delineation —Primary and Secondary Trade Areas
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14
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year —
Based on the cluster analysis study, three recommendations were provided for each cluster, totaling nine
recommendations in all. The analysis provided further guidance with the development of this plan. The
economic development recommendations are summarized below:
1) Develop a medical cluster along Highway 114
for hospitals and niche health care sectors.
2) Create a pro -business environment with access
to financial resources to fund medical research
& development.
3) Work with the private medical industry in
Southlake to market domestic Medical
Tourism around the U.S.
4) Create a destination independent restaurant
cluster.
5) Establish a for -profit or non-profit culinary
school.
Medical Office Building
The City used the MXD studies to establish a frameworkfor the final recommendations in this plan.
2.5 Existing Local Economic Incentive Policies
The City of Southlake has negotiated a variety of incentives to attract
desired businesses into the community that meet the vision and
standards established by its leaders. As competition grows and each
piece of land is developed, special consideration will need to be taken
into account so the long term economic viability can be sustained.
While no formal policy has ever been drafted, the City has strived to
create a win -win outcome for future corporate citizens as well as
existing taxpayers.
Below is a summary of the economic incentive policies currently used
by the City.
Chapter 380 Agreements
Chapter 380 of the Texas Local Government Code allows Texas
municipalities to provide a grant or a loan of city funds or services to
promote economic development. A Chapter 380 development
agreement bypasses the need for upfront government incentives and
is implemented only when a project is operating and providing an
agreed -upon tax producing level, thereby avoiding the prospect of a
failed development taking incentive dollars.
Under a Chapter 380 agreement, a developer and taxing body
negotiate a contract to provide incentives in return for the project meeting performance benchmarks. The
agreement helps the business offset some costs associated with construction and infrastructure.
In Southlake, projects are evaluated individually based on alignment with stated economic development
goals as well as infrastructure and project enhancement needs.
15
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Tax Abatement Agreements
Tax abatement is a tool whereby all or a portion of the increase in the value of
real and/or business personal property can be exempted from taxation. Legal
authority for tax abatements comes from Chapter 312 of the Texas Property Tax
Code; therefore, cities must meet the provisions of the Code when using
abatements. Tax abatement agreements have been used by the City in large,
multi -year corporate incentive packages. Both Sabre and Verizon have been
granted tax abatements from the City. By developing and supporting business
enterprises that create jobs in Southlake, tax abatements have proven to be a
useful tool in the stimulation of economic development in Southlake.
Additionally, tax abatements have an added benefit in that they accurately reflect
the value of the abatement in the City's annual property valuation totals.
Tax Increment Financing
Tax Increment Financing is a tool to finance public
improvements within a defined area. The improvements
should enhance the environment and attract new
investment. The statutes governing tax increment
financing are in Chapter 311 of the Texas Tax Code.
A municipality makes an area eligible for tax increment
financing by designating a "reinvestment zone," also
called a "tax increment reinvestment zone (TIRZ)" or a
"tax increment financing (TIF)" area. Costs of selected
public improvements outlined in the zone's project and
financing plan may be paid by current or future tax
revenue flowing from redeveloped or appreciated real
property valued in the zone. The additional tax dollars
generated by the growth of real property value in the
zone are referred to as the "increment." These dollars
Cs ere.
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Tax Increment SOUTHLAKE
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flow to a fund for a specified number of years. Money
flowing into the fund each year is spent according to an SouthlakeTaxlncrementReinvestmentZone#1
approved plan and in accordance with agreements in place with participating governments.
The City of Southlake has one active zone, referred to as TIRZ #1, which was established to provide a
financing mechanism to facilitate high quality development in the central and southeast portion of the City.
The Southlake City Council created TIRZ #1 in September 1997 with the adoption of Ordinance No. 682. The
ordinance established the boundaries of the zone, established a Board of Directors to oversee its activities,
and delineated the term of the zone. The TIRZ #1 is set to expire on December 31, 2018.
Fast -Track Development Review Processing
The City actively works with developers on time sensitive projects that provide a substantial benefit to the
residents and the City. The entitlement process coupled with the time it takes to obtain building permits can
to some businesses prove to be a hindrance to developing in Southlake. The City currently has an expedited
building plan review program that a development can utilize. Finding strategies for expedited entitlement in
a competitively growing market will become of greater importance for the City to consider.
16
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
2.6 Situational Analysis (SWOT)
A SWOT analysis of the local economy should answer the question,
"Where are we now?" by using the background information to help
identify the critical internal and external factors that speak to the City's
unique assets and competitive positioning. The SWOT is a strategic
planning tool used by organizations to ensure that there is a clear
objective informed by a comprehensive understanding of a City's
capabilities and capacity.
A SWOT analysis identifies the City's competitive advantages —those local assets that make the region
special or competitive in the national and global economies —compared against those internal or external
factors that can keep a city from realizing its potential. Determining and analyzing what the region already
possesses that could be leveraged better to build the capacity for growth, including competitive cultural,
economic, technological, intellectual and physical assets, is critical to developing the strategic direction and
implementation plan to promote the City's economic vitality. Leveraging assets refers to using the activities
and engagement of business, government leaders and other stakeholders to maximize the economic
potential of a region. Conducting a SWOT analysis for the City was critical in developing the policies and
recommendations contained in this plan. Based on the analysis, shown in the exhibit below, the City has a
number of advantages due primarily to its location, high quality development and well educated residents.
There are also a number of external factors however that are being considered through the development of
this plan such as growing competition from nearby regional developments and national economic
conditions.
17
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
With the analysis being considered, it's
not difficult to realize when visiting
Southlake that the City has made many
of the right choices relating to its own
development and economy, and the
City truly understands how to capitalize
on its strengths and opportunities
available to it. Several world -class
employers including Vario Systems,
Sabre Holdings, Verizon Wireless, Hilton
Hotels, Central Market and soon enough
TD Ameritrade, call Southlake home.
These high -quality, successful, and
community minded businesses are
examples of the type of business the
City should continue to pursue for new
development. To give an example,
Sabre's world headquarters was
developed as one of the first LEED
(Leadership in Energy and Environmental Design) certified sites in the country. This type of corporate
development fits well with Southlake's vision and exemplifies the type of development for which Southlake
is known for and strives to attain.
1:9 Amentrade
18
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Southlake Market
Southlake is primarily located in Tarrant
County, with a small portion of the City within
Denton County. According to the North
Central Texas Council of Governments, the
Tarrant County population is estimated to be
around 2,020,278 residents in early 2017,
which is over a 25% population increase over
the past decade. This makes Tarrant County
one of the fastest growing urban counties in
the United States today. The county is
projected to grow in population to 3,094,649
residents by 2040, representing growth of
53%, much higher than the expected US
average population growth change in 2040.
City of Fort Worth, Tarrant County Seat
There are 651,877 households in Tarrant
County with an average of 2.75 persons per household. This is slightly higher than the US average of 2.58
persons per household according to the 2010 US Census. 27.5% of the population is below 18 years of age,
and 9.6% of the population is above 65 years of age, as of 2012.
It is expected that the largest increase in residential population will be those over 65 years of age. There is a
projected 30.5 % increase in the 65 to 74 year -old age bracket from 2013 to 2018. Due to the gradually aging
population, the median age in Tarrant County is projected to slightly increase from 32.3 in 2000 to 33.0 in
2018, this being attributed to the significant growth around the periphery of Tarrant County cities.
So why is this important for economic development in Southlake? These population estimates give
Southlake an idea of the current consumer/employment market it could tap into and also provides a general
forecast of potential consumer/employment market that could be benefited from in the future. During the
development of the Economic Cluster Analysis Report, MXD conducted an analysis of the current drive -time
demographics to give the City a frame of reference for current conditions.
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Southlake Area Demographics using
Drive -Times
Total
2010 Population 27,804 238,938
430,346 697,038
2015 Population
30,477
261,873
473,202
765,552
2010 No. of
Households
g,691
92,376
170,718
272,055
2015 No. of
g g11
100,959
186,557
297,327
Households
2010 HH incomes of
+ $100,000
5,215
35,926
49,687
90,819
2015 HH incomes of
6,475
45,531
66,042
118,048
+ $100,000
2010 HH incomes of
2,260
8,868
10,072
21,200
+ $200,000
2015 HH incomes of
2,757
10,802
12,686
25,245
+ $200,000
19
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Deveiopment Opportunities
The City currently contains approximately 850 acres of undeveloped non-residential land available. The
majority of this land is primarily located along the State Highway 114 corridor (primarily Mixed Use) and
along State Highway 26 (primarily Industrial). The Mixed Use designation is the most flexible land use
category and allows residential, office, retail and hotel allowing these undeveloped lands flexibility to
respond to market trends and needs.
CoNSoui)ATEo LAND USE PLAN PERCENTAGE AREA Developed
DISTRIBUTION BY LAND USE CATEGORY' ® undeveloped
Retai l Commercial Town Center
Regional Retail 433.93
i15.6 1% Puhlic�Semi-Public lOUYear Flood Plain acres
acres Public Parkslopen 5% 1 4% 109L
29% Space j Industrial
4%
INrire Commercial
rr
3%
r
Mixed lase
Industrial B Low Density Residential
22 75 365.28
acres _ acres
13s
10%
Low Density
Residential)
33%
Medium Density
Residential
29%
1 �
Town Center _
20.73 M1:1ed'surn Density Residential
acn— 1.14 12.88_
8% acres _ acres
1%
94..68'e
acrei
580.87
632.04 acres
acres
98%
Retail Commercial Regional Retail Publicisemi-public Mice Commercial Mined use 26
Source: DeoartmenI of Planning & Development Services — May 2016
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20
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year —
Places with the largest
surge in daytime population
Percent change in population among
places with 50,000+ residents.
0 Redmond
+111.4% VVAr—
Salt Lake City
+80,0%
Q Greenville, S.C.
Palo Alto, Calif. +97.9%
+82.5% Alp�Q
haretta, Ga.
+85.2%
Source. U.S. Census Bureau THE SEATTLE TIMES
Daytime Population
The decennial Census counts people where they
live. While most people spend their evenings at
their home/residence, many travel during the day
for various purposes including work, education,
healthcare, recreation, etc., and where they
spend their daytime hours could be in another
town from where they live. Therefore, the
daytime population could be very different from
the resident population in any geographic area.
Despite official estimates, many parts of the US
have populations that vary wildly from day to
night. Think of the repeating cycle of sleepy
suburbs emptying onto highways every morning
and the city centers emptying back out in the late
afternoon.
There are really two different population measurements: the nighttime population consisting of permanent
residents (where people live) and daytime population consisting of those who spend all day in a given
location for work or even for tourism purposes. This is an important difference, especially for organizations
that want to find out where people are during the day, rather than where they call home. Southlake is
gradually becoming an important economic center for Tarrant County and the North Texas region. As its
importance grows and the State Highway 114 corridor further develops, Southlake will continue to see its
daytime population continue to increase providing a solid economic base for the community.
Daytime population is a better indicator of a locality's economic and social activities than resident
population, and daytime population estimates are essential for evaluating business development, gauging
transportation and infrastructure needs, planning emergency evacuation, and other needs.
While the Census Bureau provides estimates of daytime population at the county level through the
American Fact Finder, anything smaller requires manual processing and a study would need to occur for the
most accurate estimates. County level daytime population data isn't all that helpful in many instances.
For instance, Tarrant County encompasses the majority of the City of Fort Worth and its nearest suburbs. This
large geographic area obscures movement patterns of the population within Fort Worth itself.
To remain sustainable, Southlake will need to ensure that its daytime population is at a healthy level to
support the existing and future businesses in the community while maintaining its high level of service that
many businesses and residents have come to expect.
3.1 Target Industries
During the development of the Retail Analysis Study and Economic Cluster Analysis conducted by MXD, a
number of very specific industries were identified to be the preferred markets the City should strive to
attract. A critical component of this plan is the identification of target industries. It is important to
understand the business sectors most likely to be successful and prosper in the Southlake market. It is also
critical to identify these sectors because these are the types of businesses that will most likely create a ROI as
a result of a City -related incentive. These are the sectors most likely to bring value to the city in the form of
tax value, investment, jobs, payroll and local purchasing. These target industries and descriptors are shown
on the next page.
21
— Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
SOUTHLAKE TARGET INDUSTRIES
• Full -service and limited -service restaurants (unique, independent restaurants, farm -to -table, etc.)
• Specialty grocery (organic/local, specialty foods, dine -in or take -away house made prepared foods,
artisanal cafe, wine and cheese from around the globe)
• House & home retail (furnishings and appliances, home design showrooms, smart home technology)
• Health, beauty and wellness (salons, spas, fitness training/gyms, yoga studios)
• Culinary Hub (farm -to -table, farmers market, specialty food retailers, commercial grade kitchens, culinary
business incubator)
• Corporate headquarters and regional offices (large scale, build -to -suit campus office)
• Multi -tenant garden -style (professional services: accountants, engineers/planners/architects, information
technology, lawyers, advertising and media, management consulting, actuary's)
• Health, beauty and wellness (specialized facilities for cosmetic procedures, healthy living, etc.)
• Specialized pediatric and senior clinic / outpatient facilities
• Specialized medical facilities for surgical procedures (implanted medical devices, bariatric, etc.)
• Medical/wellness hub along SH 114
• Research & Development Center
• Corporate headquarters and regional offices
• Professional services
• Corporate headquarters and regional offices
• Professional services
• Telecommunications
• Corporate headquarters and regional offices
• Research and development
22
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Niche Retail (including Restaurants)
The retail industry in North America has been affected by rapid changes in technology and the recession of
the late 2000's. Increasing sales on the internet mean that bricks -and -mortar retail is changing. Online sales
are growing at approximately 10% annually and are expected to reach $370 billion by 2017 according to
Urban Land Institute. Although there was a pessimistic outlook previously for brick -and -mortar retail with
the emergence of online sales, the sector now understands that both are extremely important to future
viability.
Gen-Y, often referred to as
Millennials, is becoming the target
for retailers (those between the
ages of 15-30), as their spending
power is projected to account for
nearly one-third of total retail
spending by 2020 according to
McKinsey & Company. Gen-Y is
fond of shopping and dining out,
but focuses more towards the
Lifestyle Pedestrian -Friendly Retail Center unique experience. They prefer to
shop in smaller locally -owned
boutique shops, even if the goods are more expensive than national brands. An example of this in Southlake
Town Square is the retailer Tyler's.
Baby boomers are the second largest demographic in the U.S. (20% of the population), after Millennials
according to the U.S. Census Bureau, and are beginning to reach retirement age. Baby boomers will be
downsizing from their large single-family homes as the children leave the nest, to smaller units such as
condos and townhouses. There will also be a greater demand for services and medical facilities.
The Retail Demand Analysis conducted by MXD projected the amount of supportable square footage within
Full Service and Limited Service Restaurants for the Primary Trade Area which includes communities such as
Trophy Club, Westlake, Roanoke, etc. (found on page 12) displaying that Southlake could be able to obtain
40% of future demand between 2015 and 2025, totalling approximately 85,000 square feet.
When conducting the Retail Analysis, MXD also calculated how many square feet of retail per capita the City
has in comparison to other benchmarks. Southlake's retail per capita was calculated using major organized
retail center of 15,000 square feet or larger. The City of Southlake has more than four times the U.S. average
of organized retail per capita on a square
foot basis. Urban areas typically have forty Organized Retail Per Capita
to sixty square feet of retail per capita as 120
they draw from more rural areas. 103
LL
Q 100
MXD tracked and calculated that the retail
M
inventory for the PTA (Primary Trade Area),
'EL 80
M
excluding Southlake, is 3,687,185 square
a 60
feet of organized retail space. This means
that the PTA, excluding Southlake, has an
40
organized retail per capita of 41 square feet,
E
which is more in line with the Texas and US
m 20
average, and less than half of Southlake's
0
103 square feet. This demonstrated that
Southlake
Southlake relies quite heavily on spending
Source: fCSC
41
27 24
PTA Excluding Texas United States
Southlake
23
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
dollars from shoppers outside of the City boundaries to keep their current retail viable and sustainable.
According to the supply and demand models developed by MXD, the City of Southlake has currently
reached a retail saturation point based on population and inflow spending from surrounding communities.
Projects such as Kimball Oaks and Park Village, which are both currently under construction, will take up a
large amount of retail absorption in the coming years.
Future retail formats built in the City should be focused towards neighborhood centers and quasi -lifestyle
centers similar to the Shops of Southlake, Park Village and Carroll Pointe. These formats are simple to lease,
offer competitive lease rates and match the development style of Southlake. With the changing nature of
retail moving towards smaller -scale projects, Southlake is well positioned to continue to maintain a focus
towards "quality over quantity."
There are future opportunities for retail expansion in Southlake if constructed in a strategic manner that
focuses on niche opportunity retail categories. Retail opportunities to expand into in the coming years
include full -service and limited -service restaurants, specialty grocery, home furnishings & accessories, and
health & beauty.
Restaurants are the most dynamic retail category, with the
sector shifting away from national chain restaurants, towards
artisan and locally sourced focused restaurants and bars. New
dining concepts that focus on organic, local, diet -sensitive and
"foodie behavior" create dining destinations. This includes
restaurant clusters such as Trinity Groves in Dallas, create your
own meals restaurants, healthy and organically focused
restaurants and music venues that serve as pop-up shops
during the daytime. These emerging trends require current and
new developments to be adaptable and flexible in their
development program and mix, so they are able to stay
relevant and have a lasting & sustainable consumer base.
An opportunity lies for the City of Southlake to create a restaurant cluster similar to that of Trinity Groves in
Dallas, although it would be envisioned to have slightly grander architectural standards. There currently are
no major restaurant clusters in the Mid -Cities, and promotion of culinary endeavours by cities in the
Metroplex is currently lacking on most fronts compared to many progressive culinary cities in North America.
This restaurant cluster is also supported by the retail demand analysis conducted by MXD in Phase 1 of this
assignment, with the City of Southlake able to absorb over 53,000 square feet of full -service restaurant space
by 2025.
Culinary/Restaurant clusters are a new and
exciting way to create a culinary destination that
pulls in spending dollars from around a metro
region. In Oregon, the City of Portland has
created micro -restaurant clusters, pods of small
restaurants (500 to 1,500 square feet each) that
are a step up from food carts and have proven to
be extremely popular to locals and tourists alike.
The lower rents give entrepreneurs and budding
chefs the ability to start a business on a small
budget. Common dining spaces outside give
these start-ups the ability to cut costs and the
24
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
initial capital costs for the construction is also quite low. The concept is also attractive to established
restaurant owners who are looking to experiment with new concepts. MXD identified potential culinary
cluster locations within the Carillon master planned development in the retail district and also along the
State Highway 114 frontage road, south of Dove Road, west of N. White Chapel Boulevard.
The final piece is a culinary school, which will rely on either private equity or philanthropic grants if the
school is to be a non-profit. Currently, culinary schools are primarily located in Dallas and Fort Worth,
although many of their locations are in older leased buildings. The City of Southlake may be able to attract a
for -profit culinary school if a more modern facility is available or constructed build -to -suit
Office (Corporate and Suburban)
The post -recession office market in the DFW
Metroplex is healthy and benefitting from a
declining unemployment rate, an increasing
labor force, and employment growth across
multiple sectors. The Mid -Cities sub -market is
part of the Fort Worth portion of the DFW
regional office market according to brokerage
firm CBRE Group, Inc., Southlake is located
within the Mid -Cities submarket.
Most office properties in Mid -Cities are located
along major roads and highways and in the
central areas of local municipalities, including
Arlington, Southlake, Bedford, and the North
Richland Hills area.
Office building typologies in the Mid -Cities include:
Telecom Corridor —Richardson, TX
Large Corporate Office Buildings
Office -over -Retail Main Street Buildings
Office -Industrial Flex Spaces in Industrial Parks and Freestanding Properties
Small Office Buildings (Freestanding, in Business Parks & Retail Plazas)
Corporate headquarters and regional offices
are highly sought after by growing
communities. Corporate headquarters
typically offer high average wages and
provide jobs for professionals of high
socioeconomic status. Corporate
headquarters make good corporate citizens
and their employees tend to be engaged in
leadership roles in the community. As research
has found that local nonprofit donations
increase with the mere presence of a
corporate headquarters in a city. Given this, a
corporate headquarters recruitment strategy
fits well with the City of Southlake's vision.
Corporate Campus Plaza
25
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
A number of Southlake's assets make the city attractive to corporate headquarters and regional offices. For
example, the city's proximity to both Dallas -Fort Worth International Airport and Alliance Airport provides
convenient transportation options desirable by corporate and regional offices that require employees to
travel frequently. The city's location along the growing State Highway 114 West corridor is one of the city's
biggest assets. Many businesses already have located their headquarters along the highway that runs
through Southlake, Westlake, Grapevine, Haslet, Justin, Keller, Northlake, Roanoke, Trophy Club, and
Westlake. However, to truly benefit from this "golden corridor," Southlake must be strategic in its business
recruitment activities. The corporate and regional campuses Southlake should be targeting based on
Southlakes' assets consist of Finance, Insurance & Wealth Management, Information Technology & Media,
and Bio-Technology and Pharmaceuticals.
There currently is a limited
demand for mixed -use
prestige office. Most tenants
are preferring the more
affordable suburban multi -
tenant garden -style office
that is cheaper to build, thus
lease rates are more
affordable. This format, along
with industrial -flex are the
simplest to lease out and
absorb into the market.
Southlake should be conservative in the amount of spec multi -tenant office approved and constructed in
the city, until absorption stabilizes and demand in the Mid -Cities grows. Building too much, too quickly can
lead to increases in the vacancy rate.
Medical Spa
r_
�j
The focus in Southlake should be towards "quality over
quantity" with incremental growth of the multi -tenant
garden -style office, and large scale built -to -suit
campus offices for tenants looking at making
Southlake their long-term home such as what has
occurred with Sabre. A higher amount of office space
would allow for further demand for retail, restaurants,
and services, but only if it is leased out and not sitting
vacant.
M-dical ano, Healthcare
According to the Dallas Economic Development Guide,
"The healthcare industry in DFW is more than just
health care services; it also includes manufacturing,
research and goods distribution." This includes
hospitals, corporate offices, manufacturing, services,
and research and development. The region has a
number of upcoming medical construction and
expansion projects, primarily clustered around Dallas
and Fort Worth, although suburban communities are
making large strides.
26
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
With continued population growth and development in communities west of Southlake, there are
opportunities available to capture the health and medical needs of new residents, although this should not
be the only reliance. While capacity of hospital beds are still important, specialty medical fields are on the
rise such as pediatrics, geriatrics, plastic surgery, pharmacy, cardiology, and neurosciences, especially when
connections are created with university and college satellite research facilities.
In the Retail and Economic Cluster analyses conducted by MXD, there were a few locations identified as
being appropriate to support the clusters based on adjacent land uses and traffic volumes. For the medical
cluster, the land adjacent to the State Highway 114 frontage road near the Methodist Southlake Hospital
(formerly Forest Park Medical Center at Southlake) and the Children's Health Specialty Center Southlake are
ideal in supporting this type of cluster and designating this area as a "medical district" or optional future land
use category within the City's future land use plan.
Coming out of this analysis, opportunities for the City of Southlake include: encouraging the development
of specialized facilities for cosmetic procedures, healthy living, pediatric and senior clinic/outpatient
facilities, and surgical facilities, medical cluster along Highway 114 for hospitals and specialized health care
sectors, and develop a pro -business environment with access to financial resources to fund medical research
& development.
Finance, Insurance and Wealth Management
This sector includes commercial banking, investment banking and insurance. Substantial growth has
occurred in this industry over the past few years. Banking, asset management, venture capital and private
equity are some of the largest and most liquid in the world. Prior to TD Ameritrade locating in Southlake,
these industries in the city were composed of numerous small offices, which may or may not be
independent in nature. Southlake's and the region's demographic profile will always provide a draw and
appeal to these professional services. However, the focus should be on attracting the larger corporate
entities similar to TD Ameritrade as this type of industry will help meet the City's goal of fostering a daytime
workforce population with spending power which provides a built-in market to help support the city's retail
and restaurant sectors.
,)n Technology and Media
This sector covers a broad range of activities from computer programming and software to broadcast and
technology media firms. Despite Southlake being the home of Sabre, a global technology company, and
corporations like AT&T and Texas Instruments being located in the area, most people would not recognize
the DFW region as a thriving technology hub. However, information technology jobs in the DFW region
have doubled since the early 2000s and the job market shows no sign of slowing. The past few years, the
State of Texas has created more information technology jobs than any other state. The biggest
opportunities for information technology employment are in mobile, big data and software development.
Southlake has an opportunity to attract businesses from this sector whether it is a start up, Fortune 500
company or everything in between.
Biotechnology and Pharmaceuticals
The Dallas -Fort Worth region has long been viewed as a fertile market for biomed, with the University of
Texas Southwestern, home of four practicing Nobel Prize winners, plus research universities such as the
University of Texas at Dallas, the University of North Texas and the University of Texas at Arlington.
Texas is home to over 3600 biotechnology manufacturing and research and development firms. Irving -
based Kimberly-Clark and Celanese, both on the Fortune 1000 list, are the largest bio-tech/pharmaceutical
companies in the State. Additionally, for every biotechnology job created, another 2 to 3 jobs are created
elsewhere in the Texas economy.
27
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
A growing list of global pharmacy companies have established research and production facilities in Texas,
including Allergan, Mylan, Lonza and Alcon Laboratories. Approximately 120 firms call Texas home, making
it one of the top 10 states in the nation for pharmaceutical manufacturing workers. Texas is also a leading
pharmaceutical research state, ranking second nationally for number of clinical trials.
In 2015, biotech and pharmaceutical companies set a new record for the value of the deals (acquiring
businesses) they struck in a single year at $462.2 billion which underscores that these companies are
attempting to secure new medicine or innovation to grow their business.
With this sector clearly established in the DFW market and the acquisition and mergers of companies, the
Southlake area serves as a potential location for a company to expand or locate a facility.
3.3 Business Resources
The City of Southlake, through the development of this master plan, is taking a proactive approach to better
address the increased demands and challenges facing the local business community, and to continue to
draw quality tenants and businesses to the community. By providing resources that reduce the time it takes
to obtain information and enhancing outreach and services through a "business first" approach, Southlake is
striving to provide businesses with personalized customer service to meet their needs and for the
community to keep up with demand.
Business resources are becoming more important to small businesses, large companies and budding
entrepreneurs alike and the City can provide them with the tools, information and guidance they need to
thrive and create jobs in Southlake.
Bu,,°.., ss Relationships Resources
0
SUPPORT SERVICE
SALES y CRA4 ♦- ORUERS
STRATEGY 1 ANALYSIS
MARKETING
Customer Relationship Management (CRM) is a term
that refers to practices, strategies and technologies
that companies use to manage and analyze customer
interactions and data throughout the customer
lifecycle, with the goal of improving business
relationships with customers, assisting in customer
retention and driving sales growth. CRM systems are
designed to compile information on customers across
different channels or points of contact between the
customer and the company which could include the
company's website, telephone, live chat, direct mail,
marketing materials and social media. CRM systems
can also give customer -facing staff detailed information on customers' personal information, purchase
history, buying preferences and concerns.
Customer relationship management is the strongest and the most efficient approach in maintaining and
creating relationships with customers. Customer relationship management is not only pure business but also
create strong personal bonding within people. Development of this type of bonding can drive the
organization to new levels of success.
28
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Geographic Information Systems (GIS) Resources
Tools for businesses, such as story maps, use Geographic Information System (GIS) as a tool to combine
geospatial data with photos, video, audio, and text to visualize a theme or sequential events. Story maps are
designed for nontechnical audiences with access to the Internet; users do not need experience with GIS
software to read or use story maps. Story maps serve as a great tool for public engagement because they can
easily be shared via social media or embedded within a website.
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Story maps provide a new avenue for local governments and economic development organizations to
showcase a planning process or market features of developable properties. This easy -to -use technology can
integrate available, open -access GIS data, such as local infrastructure, like sidewalks and cell towers, or
Census data on populations and demographics.
Planning for Market -Ready (Re)Development
• This GIS story map Illustrates how the Town of
Middletown, Delaware used land use planning strategies
to prepare for market -ready development.
To navigate, click the right arrow an the inset or the
...{{{
numbered images along the bottom. These numbers
-
represent the different steps in the process.
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The Amazon Distributton Fulfillment Center is
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represented by a red circle outlined in black on the map.
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Entities interested in boosting economic
development could develop story maps
to market available properties in
downtown "infill" areas, business parks,
or other designated growth areas. Maps
could also highlight the location of
capital improvement projects, must -visit
restaurants and breweries, farmers'
market and community garden locations,
local park systems, areas of low -impact
development and much more.
Other GIS based resources consist of land site searching tools that can assist prospective businesses find the
best location within the community to purchase, develop or lease. These tools can provide developers and
businesses real-time information with development related information that can efficiently get them the
information needed to make business decisions.
29
- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
tTn
Site selection is the process by which firms find new
locations for business facilities or expansions of their
operations. Each year, more than 15,000 localities seek to
attract the estimated 100-200 locations that take place.
New facilities often mean new jobs, new investment, and
an enhanced tax base. During location, businesses look to
minimize start-up and operating costs while maintaining
close proximity to their suppliers and customers.
Though most new locations are within the same region
and about 60 percent are due to expansion, communities
market themselves extensively to expanding firms and to
independent third parties called "location professionals."
These location professionals select sites based on detailed,
current data about the local labor force, business climate,
and available properties. This data is submitted by the
community, often on short notice.
Site selection factor ratings depend on the type of facility,
the company size, product and industry, and thus the kind
of physical infrastructure and workforce skills that are
necessary. Good data collection provides a competitive
advantage to communities that are able to chart economic,
industrial, and workforce trends. Rural, suburban, and
urban locations offer different advantages and
disadvantages for firms in a variety of growth sectors such
as: back office locations, corporate headquarters, corporate
campuses, industrial parks, biotechnology, retail sites and
e-commerce.
30
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
3.4 Southlake Market Recommendations
Southlake Market Recommendations
Recommendation.
Metric
Department
PolicyImplementation
Implement a customer relationship
management (CRM) tool to ensure
development and maintenance of
Create a strong relationships with regional
network of developers, brokers, site selectors
6.4
ED1
relationships that will and state and regional organizations.
C4, B2
6.7
EDT
1
generate high quality
leads. Host a minimum of two forums
annually with developers, brokers
and other target customer
audiences.
Establish and monitor target industry
performance metrics to include
Use data to quantify
metrics that communicate the health
ED2
the strength of the
and economic vitality of such
C4
6.2,
EDT
1
City's target industry
industries in Southlake. Develop
6.4
climate and economy
inventory by industry and calculate
saturation points where needed.
Update inventory annually.
Introduce more
Complete a culinary hub action plan
ED3
unique, independent
that provides a vision and direction
B3, C4
6.2
EDT
1
restaurants to the
and includes a plan to attract and
Southlake market
grow desired restaurants.
Evaluate and promote
Southlake's potential
regionally as a
Establish data collection criteria and
"medical/wellness
gather regional health data
hub" to encourage
biennially. Marketing and
64
ED4
development of a
recruitment initiatives should be
C4
6.
EDT
1
variety of specialized
reflective of data gathered and
medical practices,
promote the City as a
medical research
"medical/wellness hub."
facilities and variety
of doctor's offices.
As part of the Southlake 2035 Land
Use Plan update, create an overlay
Identify and market a
designation (Optional Future Land
ED5
stretch of the State
Use Category) which delineates the
C4
6.4
PDS
1
Highway 114 corridor
"medical district" area. Identify areas
as a "medical district."
where a "medical district" would be
desirable ensuring that performance
standards are included.
31
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Southlake•
• •
Recommendation•
Implementation Metric
Department
Priority
.,
Encourage Create and maintain a site inventory
development of office
that lists specific property
campuses such as
characteristics and advantages to
ED6
corporate identify desirable locations for
headquarters and
C4
6.2,
EDT
1
regional offices along corporate campuses focusing
6.4
the north side o f the primarily on target industries. These
State Highway locations should be prioritized for
incentives if developed.
corridor.
Evaluate the existing
Based on the supply/demand
multi -tenant garden
analysis, modify the Southlake 2035
office market
Land Use Plan and identify specific
ED7
supply/demand and
areas where multi -tenant garden
C4
6.4
PDS
1
establish land use
office should be located. These
policies based on the
developments should be
results.
discouraged along State Hwy 114.
As part of the Southlake 2035 Land
Assist the Carillon
Use Plan update, adopt a small area
Master Planned
plan that addresses the commercial
ED8
development with
district component of Carillon
B2, C4
6.3
PDS
1
buildout through the
reducing the amount of retail that
adoption of a small
was initially intended while still
area plan.
providing flexibility in its potential
future development.
Develop and provide a GIS-based
Support prospective
multimedia or map -based web
or existing businesses
service that provides key information
looking to locate or
on available sites and developments
relocate in the City by
in the community. Criteria should be
providing a customer-
sufficient so that customers can
ED9
focused site selection
compare sites knowledgeably and
B6
6.2
EDT, PDS
1
assistance service
understand the local market well
through an
enough to make the best decision for
interactive GIS-based
their business location. Products to
information platform.
consider modeling include Story
Maps and riverside prospecto r.com
and the Riverside SizeUp Tool for
businesses.
O
C
O
V
W
32
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Southlake- •
• .
Recommendation•
Metric
Department
Priority
PolicyImplementation
Provide more efficient
development
Identify strategic properties in the
processes while still
City for "small area plan"
maintaining a high
development. Utilize the Southlake
ED10
level of urban design
2035 Corridor Committee to develop
B5
6.3,
PDS
1
standards to ensure
recommendations that provide a
6 4
that the constantly
clear understanding of the expected
shifting demands
level of development.
from retail, office, etc.
are being met.
Use data to determine
the desired daytime
Conduct a study to identify what a
population necessary
"healthy daytime population" is
6.2,
ED11
to maintain a healthy
based on the current and future
B3, F3
6.4
EDT
1
local economy while
development anticipated in the City.
maintaining desired
level of service.
Update and improve Southlake's
proposal template to respond to
inquiries from prospects more
quickly and effectively.
Thoroughly
Create a sales -presentation template
communicate
to showcase Southlake for prospects
ED12
Southlake's
and site selectors.
C4
6.1
EDT
1
advantageous market
Create marketing materials (print
and economic
and electronic) that promote the
position.
benefits of being in Southlake such
as airport access, economic
incentives, regional transportation
access, world class businesses,
workforce, etc.)
33
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Economic Incentives
According to the IEDC, globalization has led to competition between nations, regions, and communities to
attract and retain businesses that are moving or expanding.
Incentives are tools used to influence business
decisions about where new investment will
take place or enhance development.
Economic development incentives can be
either financial or non -financial, such as tax
exemptions and credits or workforce training
and public infrastructure improvements. The
kind of incentives offered depends both on
the community and the business with which it
is bargaining. Before offering an incentive, an
economic development practitioner should
analyze the cost and benefits of providing the
incentives in terms of both dollars and social
returns.
Cedar Ridge Office Park - Southlake
The role of incentives in economic
development has and continues to be controversial. When businesses choose between two or more
sites/communities, they weigh several factors of the business climate important to their industry. Incentives
are often part of this equation, but rarely play a decisive role until the last few sites are being compared.
Competing communities may choose to bargain with the business and even to out -bid one another. While
this practice has resulted in some abuse of public dollars, many communities now use performance -based
incentives in order to assure the public that their investment will be returned in terms of jobs and wages.
In Southlake, incentives have always been performance -based and have played a strategic role. One of the
primary focuses in the development of this plan is to establish the recommendation/policy for the City to
evaluate the City's investments towards private developments. According to the International Economic
Development Council (IEDC) there are a number of trends emerging among cities and states to compete in
shrinking local, national and global markets. These trends help Southlake identify the competitive markets
when thinking about its own incentives so more strategic decisions can be made.
Trends in Incentives
The variety of incentives continues to grow as more state and local governments create and
customize incentives to be comparable or competitive with each other.
Performance -based incentives require businesses to deliver promised jobs, payroll and returns on
incentives offered.
Recipients of economic development incentives often have to guarantee job quality standards
ranging from wage and health insurance to full-time hours rules.
State incentives are increasingly used for venture, research and associated facilities.
Many economic development organizations use workforce and infrastructure development
incentives more than tax -based incentives for economic development.
34
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
4.1 Southlake's Appeal
The North Texas region is highly competitive,
as the area is attractive to corporations and
businesses because of the state's business tax
policy, the highly -skilled, educated workforce,
efficient transportation options, and potential
for growth.
As such, Southlake competes for new
investment and jobs with other cities within
the North Texas region, including Plano,
Westlake, Addison, and Frisco, as well as Dallas
and Fort Worth. Many neighboring
communities compete to attract new
businesses by using various types of financial
incentives. Communities that have adopted
4A/413 taxes have been the most aggressive to offer generous financial incentives to lure major employers,
including corporate headquarters. Southlake also has some unique combination of characteristics that
continue to draw businesses and residents alike to the community.
Southlake also competes with other regions of Texas, such as Austin -Round Rock and the Greater Houston
area. With the increased mobility of most businesses, Southlake can count other metro areas in the United
States among its competition.
35
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
4.2 Incentives
Economic incentives are only one of several tools used
as a way to attract and retain businesses, but they can
be essential in positioning the City to secure the most
sought after investments. According to the
International Economic Development Council (IEDC),
financial incentives almost always influence the site
selection process for medium and large -sized
businesses.
The City of Southlake competes for new investment
and jobs within one of the largest and most prosperous
metropolitan areas in the nation, and where cities are
aggressive in their use of financial incentives. As such,
this plan has a recommendation to establish a clear
incentive policy and be more aggressive in using
incentives to attract and retain high quality businesses
to Southlake and is a critical component of the City's
economic development program. A component that
has been used in the past and likely again in the future,
to ensure quality development occurs in Southlake.
In addition to local incentives, the State of Texas is well
known as being business friendly and the City could
potentially use this as an advantage when attracting
the desired businesses to the community. State
incentives are shown in the box on the right of this
page.
4.3 Preferred Incentives, Tools and
Programs
While a variety of incentives, tools and programs exist,
it is critical that Southlake conservatively approach any
incentives it considers to remain in a strong financial
position.
Economic Development Incentive Policy
The Government Finance Officers Association (GFOA)
has established best practices for developing economic
incentive policies within municipalities. Economic
development incentives, non -financial and financial,
include a broad range of tools, ranging from expedited
planning and permitting processes to direct or indirect
funding. Jurisdictions often use these incentives to
pursue specific economic goals such as tax base
diversification, job creation, or business retention and
Texas Economic Development Act
R&D Tax Credit
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36
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
expansion. Incentives are usually set by federal, state, or local law or practice.
The use of financial incentives to benefit private parties, especially those that involve the transfer of public
funds to private parties, introduces risk factors not generally present in other public financial management
areas. For this reason, economic incentives must be based on a policy that establishes parameters for their
appropriate use in relation to the economic development goals of the jurisdiction.
The GFOA recommends jurisdictions using or considering the use
of economic development incentives create a policy on the
appropriate parameters for use of such incentives and that the
finance officer play an active role in the creation of the policy. At a
minimum, an economic development policy should contain the
following elements:
1) Goals and Objectives: Goals and measurable objectives
create a context and accountability for the use of economic
development incentives. Common goals used in economic
development include: target economic sectors, business
retention and/or recruitment, geographic focus, job
creation, blight mitigation, improving economically
distressed neighborhoods, and environmental
improvements.
2)
Financial Incentive Tools and Limitations. An economic v
development policy should define the types of incentives
and the extent to which the jurisdiction will use them. For example, governments may choose to
grant an entitlement to any firm that meets minimum qualifications, or may choose to provide
incentives based on an assessment of individual firms. Governments may also establish maximum
funding for a particular program.
3) Evaluation Process. A clearly defined evaluation process should be outlined in an economic
development policy for the purposes of consistency and transparency. Evaluation activities and
factors typically include:
How a proposal measures up to established economic development criteria
A cost/benefit analysis
An evaluation of tax base impact, both in terms of increases in taxable value and, where a TIF is
proposed, the impact on all overlapping taxing jurisdictions.
Analysis of the impact of a project on existing businesses
A determination of whether the project would have proceeded if the incentive is not provided
A jurisdiction may also wish to include in its policy a list of required documentation for the
economic development application and the officials who are a part of the review team.
37
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
4) Performance Standards. An economic development policy
should require that specific performance standards be
established for each project receiving incentives. Not only
will these performance standards help a jurisdiction gauge
the effectiveness of its overall economic development
program, but may also be used to recover promised financial
benefits, through clawbacks or linkage agreements, of
recipients failing to fulfill their commitments.
5) Monitoring and Compliance. A process should be
established for regular monitoring of the economic
development incentives granted and the performance of
each project receiving incentives. The policy should also
provide for organizational placement and staffing of this
activity. The monitoring process should examine
performance standards relative to each economic
development agreement and determine whether the goals
for each project are achieved within the defined timeframe.
Ongoing monitoring of these projects should become part
of an overall economic development program.
38
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year —
4.4 Economic Incentives Recommendations
Economic
Recommendation.
Metric
Department
PolicyImplementation
Create clear economic development
incentive guidelines that are
Facilitate strategic
aligned to meet the objectives of
investment of public
the City in attraction and/or
ED13
funds to attract and
expansion of identified target
F2
6.4,
EDT
1
retain high quality
industries. The policy should be
6.6
businesses.
structured to allow quantifiable
measures to determine City
investment as well as impact on
preferred quality of life benefits.
Ensure ongoing
Establish a regular monitoring and
monitoring and
reporting process to include
reporting of project
periodic evaluations of individual
ED14
performance and
project performance by incentive
F2
6.4,
EDT, FIN
1
jurisdictional impacts
and an evaluation of the cumulative
6.6
for projects that
costs, benefits and degree of goal
receive public
attainment.
investment.
Continue investment in the
Maintain ongoing,
Economic Development Investment
ED15
dedicated funding to
Fund. Funding amounts should be
F2
6.2
EDT, FIN
1
achieve economic
clearly articulated in the budget
development goals.
process to anticipate supported
needs.
Ensure expenditure of
Community
Enhancement and
Development
Corporation (CEDC)
Establish a process to ensure that
and Economic
the CEDC Board reviews and
ED16
Development
provides comments to the City
B2 F2
6.6
EDT, FIN
1
Investment funds in
Council on policy and master plan
accordance with
alignment for public funds
established economic
investment requests.
development goals,
policies and master
plan
recommendations.
39
- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Business Retention and Expansion
Healthy communities have strong, healthy businesses. As competition among communities for increasingly
footloose businesses heats up, business retention programs have become the most popular economic
development efforts of communities nation-wide. While retention programs emerged in response to
business defections and the negative impacts those defections have on the local economy, they have
increased in importance as communities recognized that real job growth over time comes from local
business expansion. Surveys of U.S. economic development organizations rank it as the number one
economic development activity.
business retention programs assist small
businesses to prevent their relocation and to
help them survive in difficult times. Retention
programs typically involve partnerships
among public and private organizations that j
assess the assets and opportunities of �' =
individual companies through periodic'
surveys, interviews, and visitations. The
purpose is to establish relationships between = -
community businesses and economic -
developers to strengthen existing companies,`,,
establish early warning systems to flag at -risk`
businesses that require assistance, and ensure
that public programs meet local business
needs. Business retention initiatives usually
include a mechanism for linking expanding businesses with public programs designed to mitigate growing
pains and regulatory issues.
Successful, stable businesses form the foundation of a community's economy.
When existing businesses thrive, so does the community. Prosperous,
competitive businesses are more likely to remain and expand in the community
and, thus, provide the best opportunity to expand a community's tax base. Yet,
existing firms can also pose the greatest economic threat to a community,
should they close or relocate. Thus, a formal business retention and expansion
(BRE) strategy should lie at the heart of any economic development program. A
BRE program can identify the concerns and barriers to survival and growth that
local businesses face, particularly during difficult times. A formal BRE program
also demonstrates support for existing firms. Such support is crucial, as
established businesses often get overlooked in a community's enthusiasm to
recruit new headline -generating businesses. Yet, keeping existing companies
happy and successful can help with business attraction, as firms considering moving will often talk to
existing firms in the community.
The primary functions of a BRE program are threefold:
To ensure that at -risk businesses receive support, especially when that risk is the result of
labor issues or other factors the community can influence in some way;
To expand and support growing businesses; and
To act as an ombudsman for local businesses generally, by identifying their issues and needs.
40
Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year —
5.1 Business Climate
The practice of economic development has changed dramatically since its inception in the mid -twentieth
century. As a field that grew out of industrial development as the primary tool to create jobs, economic
development has been challenged to remake itself around fundamental changes in the economy,
technology, workforce and global integration.
Technology has automated many jobs in traditional manufacturing, improved productivity, increased
communication and enabled the movement of jobs overseas. Business models have changed, with the rise
of the global corporation and the decline of local corporate leadership. Workforce quality has become a
more urgent concern; a much higher level of skills is required today before coming onto the job. In addition,
retiring baby boomers will be replaced by a much smaller group.
Business Surveys
Municipal opinion surveys/municipal satisfaction surveys enable
residents and business owners/leaders to share their perceptions and
suggestions about municipal government, specific public issues, and
the various services provided to them with their mayor/city manager
and city/town council. The results of municipal satisfaction surveys can
also be shared with residents and business owners/leaders.
Mayors and city council members often have to make important
decisions with limited information and input from residents and
businesses. Municipal surveys/municipal satisfaction surveys are
designed to gather perceptions on many important issues and to
aggregate the results to get the pulse of the city/town. Mayors and city
councils are able to learn from community survey/municipal survey results and establish priorities and
budgets based on feedback from residents, taxpayers and businesses. Municipal opinion surveys/municipal
satisfaction surveys provide an easy, proactive and very cost-effective way for municipal government leaders
to gather feedback and suggestions from and be more responsive to all of their constituents.
5.2 Partnerships & Alliances
Public and private organizations often come together, forming non-profit organizations with the aim of:
Undertaking economic development efforts
Promoting sustainable business
Improving workforce development
Diversifying the economic base of a region
Improving the quality of life
Both the public and private organizations who form
these non -profits contribute either financially or "in
kind" support (i.e. administrative support, grant
writings, etc.). Public -Private partnerships act as a
strong voice for the interests of local businesses, while
also possessing immediate access to the highest levels
of local government. These organizations have greater
G41(rE
QY.9M Ra1FCdYllMERCE
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
flexibility than the public sector to conduct economic development activities since they do not have to
answer to such a broad constituency.
Trends in Public -Private Partnerships
The need for a broad range of skills, information, and finance in many economic development projects has
led to the creation of many public -private partnerships. The form of most public -private partnerships is very
similar; however, the aims of many partnerships vary.
Small public -private partnerships are being created to focus on smaller geographic areas for better
access to funding programs, reaching out to public and private stakeholders in the community, and
recruiting community volunteers.
Universities create partnerships targeting economic development in their communities.
Enterprise Communities/Empowerment Zones bring public and private partnerships together to
further their goals.
Communities have formed public -private partnerships to build fiber-optic telecommunications
networks.
5.3 Tools and SuDDort for Businesses
Economic Development Marketing
Communities can market the community as a
whole, individual properties or sites, particular
neighborhoods or specific programs or policies.
From an economic development point of view,
one major business relocation can revitalize an
economy by creating jobs, spinning off ancillary
businesses, and changing the image of the
community as a business -friendly area.
Alternatively, when businesses leave the area,
they eliminate jobs and have negative
economic consequences on other businesses in
the area that had relied on their patronage. In
the current environment where businesses and
labor are increasingly footloose, communities spend a lot of effort marketing their community and their
available sites for economic benefit.
Many organizations contribute to a community's
marketing activities — state and local
governments, chambers of commerce, utility
companies, regional organizations, community
development corporations, property developers,
hospitals, universities, and hotel, convention and
tourist bureaus. The degree to which these
organizations coordinate their activities around a
common vision is a critical determinant of
marketing success.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Trends in Economic Development Marketing
Manufacturing businesses have traditionally been the target of marketing. In recent years, however,
communities have included retail, services, and technology firms.
According to Development Counsellors International (DCI) 1999 survey of site location professionals,
the role of web -based marketing increased two -fold from 1996.
Domain names such as BestPlace2Live.com help to distinguish State and city economic
development sites.
Geographical Information Systems (GIS) provide
dynamic site selection information including: available
properties, demographics, core business analysis.
Television ads promoting jobs and industry are used to
recruit talented workers.
Marketing career pathways in schools stimulates
children to think about targeted careers from an early
age.
Practitioners advertise the capabilities of the entire
region as well as their community. Some cities in
California, outside the heart of Silicon Valley, position
themselves as a high-tech area by marketing their
proximity to Silicon Valley.
Economic development practitioners target a particular
industry in a country/region or all industries in a region through cluster analysis, sectoral analysis
and geographic targeting.
Marketing is used to create a community image and identity and to project a high quality of life.
Public -private partnerships and entities increasing conduct regional marketing.
Marketing through foreign trade missions and hosting foreign delegations bolster the local
economy by improving the region's global stature and by identifying new markets.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
,cing and ivating Economic Development Marketing Programs
Communities use marketing to achieve different objectives. Some use it to attract businesses, others to
retain businesses, others to drum up tourism, and still others to get local residents to shop locally. Marketing
efforts should be evaluated to the degree their marketing campaign meets their economic development
objectives.
Given the range of organizations involved in marketing efforts, coordination and pooling of resources to
meet common goals is necessary to maximize the potential of marketing efforts. Thus, how and the degree
to which coordination occurs should be considered in the evaluation.
3. Tell It 5. Build the
Well Relationship
2. Have a 4. Tell It
Story to Often
Tell
T+Pr+inn and Rw;inps
According to the International Association of Public Transport (UITP), cities are the powerhouses of the
economy, concentrating 80% of world economic output and more than 50% of the world's inhabitants.
Whilst the social advantages of public transport are well known, the economic benefits, particularly for cities,
are less well documented.
Efficient mobility in cities creates economic opportunities, enables trade, facilitates access to markets and
services and makes efficient use of resources. As public transport forms the backbone of any efficient
mobility system, adequate public transport provision helps make cities more dynamic and competitive as
well as create more jobs.
Public transport is a major contributor to both national and local city economies through the diverse range
of skilled, high-tech jobs that it offers directly. Public transport operators alone employ some 7.3 million
people worldwide with authorities accounting for another 300,000 internationally. As an example, in many
European cities, such as Brussels, Amsterdam, Barcelona and Paris, public transport operators are in fact the
largest city employers. Now placing things into context, in Southlake, there can be many benefits to
providing an alternative mode of transportation on a smaller scale.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Capital investment in public transport sparks a
chain reaction in economic activity up to three
of four times the initial investment, enabling
and promoting urban densification and
greater urban productivity. Investments such
as these can also provide up to twice as many
local jobs compared to investment in other
areas, such as roads, due to their complexity
and thus the variety of competencies
required.
Such projects can also help to act as a catalyst
for wider development, helping to attract
businesses and private investment to cities.
While large-scale public transport investment
projects are undoubtedly expensive, they are actually significantly less expensive than the direct cost of
congestion, which can seriously harm the cities' competitiveness, affecting travel time reliability and
business productivity. Something Southlake is challenged by as the growth in population continues in North
Texas.
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5.4 Business Retention and Expansion Recommendations
Business Retention and Expansion
RecommendationPriority
Policy
Develop and oversee a robust
business visitation program, complete
Create opportunities
with strategic goals and objectives,
for the City to learn
roles, responsibilities and
about concerns and
performance metrics.
ED17
anticipate needs
C4
6.3
EDT
1
within the business
Host regular roundtables to give local
businesses the opportunity to meet
community.
face to face with staff and one
another. Utilize partnerships where
appropriate.
Ensure adequate
Conduct a resource review and create
ED18
marketing of new
a biennial marketing plan that is
B2, C5
6.3,
EDT
2
and existing
responsive to strategic goals, ensuring
6.4
businesses.
initiatives are measurable.
Implement a system to monitor
leasing activity to identify
opportunities for redevelopment
and/or expansion.
Create a plan for assisting property
Improve and
owners and/or brokers with marketing
ED19
strengthen existing
large vacancies within commercial
C4
6.3
EDT
2
commercial centers.
centers.
Conduct an assessment on existing
commercial centers to identify and
implement solutions to challenges
such as traffic and parking that
discourage shopping and dining in
existing commercial centers.
Ensure that
adequate
networking
Work with strategic partners to create
opportunities for
and enhance networking programs
ED20
local business
for the benefit of the entire business
C5
6.7
EDT
1
owners, including
entrepreneurial
community.
companies and retail
businesses, exist.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
RetentionBusiness • Expansion
No. Recommendation Implementation Metric Strategic • Department Priority
Policy Link Link Tier
Conduct an annual business climate
Evaluate the City's survey that collects information from
economic programs Southlake employers about their
by conducting an outlook and needs and to determine if 6.2,
ED21 annual business the City's programs are meeting those C6, CS 6.7
EDT 1
climate & needs. Modify the economic
satisfaction survey. development related plans based on
the survey results if needed.
Provide an Provide and implement an alternative
alternative mode of mode of transportation that benefits
ED22 transportation with both visitors to the City and C2 6.2 EDT, PW 2
stops at key businesses to promote local business
locations in the City. sustainability.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
Citizen and Community Engagement
What is Citizen and Community Engagement:
To put it simply, citizens of a community are "engaged" when they play an effective role in decision -making.
That means they are actively involved in defining the issues, identifying solutions, and developing priorities
for action and resources. Local leaders have broadened their list of responsibilities to include roles as
facilitator, supporter, collaborator, and empowerer of local community members.
The fundamental driver behind citizen
engagement is that only those with
access to knowledge are truly
empowered. The great LICENSING
�e
democratization comes not from CmINEN7
CAPNSi REc
allowing people to access data but -
n it
from letting them use it in a way they
see fit.
The use of all forms of digital media —
not just the Internet — allows for tremendous influence on public policy and services. It is not
"communication" in the conventional sense. The City should start with informing, and doing so in ways
which fit the needs of modern citizens who expect to find the information when and where they need it,
rather than when an agency wants to broadcast it. However the informing must allow engagement, with the
ability to respond and to be seen to respond. The process needs to become two-way, and lead to a dialogue
not only with the agency but also between its citizens and other stakeholders; hearing a plurality of views is
important in any evidence -based decision -making, and if
a balance can emerge that commands broad support
then the eventual decision will be more sound and more _
sustainable r "
In essence engagement is about turning communication
into collaboration - collaboration in which citizens can
make their voices heard, policy -makers can detect areas
that really concern the public, service administrators can
streamline delivery, and the leaders of government can
use these new channels to work across organizational
and geographic boundaries.
6.1 Promotina Awareness
Getting the economics of economic development right is crucial, but it is also insufficient. The civics must be
right, too. Economic development is fundamentally a civic enterprise and a civic process: the work to
organize and implement initiatives that engage stakeholders and partners to achieve long-term goals.
Inadequate attention to the civic nature of transformative change explains why so many economic
development plans, as well as community visioning and goal -setting exercises end up unimplemented or
prove to be unsuccessful.
The economics of economic growth is only part of the story. Sustaining growth has more to do with
leadership, governance, institutions and the interactions of these factors and processes with economic
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
outcomes. Thus, it is smart civics —the "how" —that enables the "what." It takes intentionality to create and
sustain a portfolio of mutually reinforcing initiatives that enhance the productivity of firms and workers and
put a region on a path to improving growth, prosperity, and inclusion.
6.2 Local Economic Educational Campaigns
The most forward -thinking approach to solving these problems and increasing competitiveness is to equip
today's and tomorrow's citizens with the skills and attitudes for economic and civic success in an increasingly
knowledge -based economy.
Strong economies compete on the basis
of high value, not solely low cost. A
nation, state or a city that offers a skilled
1, labor force, modern infrastructure, and a
high quality of life, yet has relatively
higher taxes, can hardly be called anti -
business. Yet in the United States, where
inequality in earnings and wealth has
been increasing for two decades, growing economic disparity is hindering the nation's ability to provide the
high -value-added products and services necessary to compete in a global marketplace. And as wages for
working people stagnate, families struggle to make ends meet, and market demand falls. Economic
problems, in turn, exacerbate problems such as crime, reliance on government assistance, and family break-
ups. To avoid these weaknesses in the social fabric, public funds that might otherwise go toward productive
investment are spent instead on crime control.
Southlake is fortunate to be located in a region where economic prosperity has been prevalent and where its
residents enjoy the offerings of a strong local economy, particularly after the recession of the last decade,
but the community is not immune from the effects of the surrounding communities or the region at large.
The most forward -thinking approach to addressing these problems before they even begin and increasing
competitiveness is to equip today's and tomorrow's citizens with the skills and attitudes for economic and
civic success in an increasingly knowledge -based economy. There is a growing consensus that money spent
wisely on education pays off not only for workers but also for communities and businesses. Educational
attainment raises incomes and increases productivity, while failures in educating the workforce are
associated with higher levels of crime and welfare dependency.
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- Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
6.3 Citizen and Community Engagement Recommendations
Citizen and Community Engagement
No.
Recommen..Priority
Implementation Metric
Department
•
Policy
Promote public
With input from the Community
awareness and
Enhancement and Development
understanding of
Corporation Board and Community
6.1,
ED23
Engagement Committee, create
C6 6.2
EDT, CMO
2
economic
development
annual public communication plan
activities and impact.
that identifies goals, key messages,
delivery mechanisms, and audience.
Review webpages against the
International Economic Development
Host a website that
Councils standards and ensure
is professional and
compliance with their best practice
6.2,
ED24
responsive to
recommendations.
C6, B6
6.3
EDT
1
customer needs.
Update the site annually utilizing
customer data and input as well as
webpage analytics.
Design and produce an e-newsletter
and blog that will provide Southlake's
stakeholders and target audiences
Provide relevant and
with relevant information on
ED25
interesting business
economic development in the city,
C6
6.3
EDT
1
and economic news
ensuring alignment with annual
on a timely basis.
public communication plan.
Publish annual and quarterly
economic vitality report.
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Implementation, Evaluation and Prioritization
7.1 Plan Evaluation and Implementation
A plan is only as good as the methods by which it is used as a tool for the ultimate goal, implementation. The
Community Enhancement and Development Corporation (CEDC) served as the committee which reviewed
every recommendation proposed in this plan. Each of the policy/recommendations were reviewed and
evaluated based on information provided within previous studies conducted for the City and the current
business environment.
Once recommendations/policies
were developed, the next step is
implementation. Developing a
F. Y.. metric for to measure the
completion of the
T" policy/recommendation helps in
implementing the master plan.
Appropriate measures show the
strategy p is important to the
community, provide motivation,
and allow for follow-through and sustained attention. For each policy/recommendation in this master plan,
an implementation metric has been established to measure its effectiveness and to ensure the City can
demonstrate the implementation of the specific policy/recommendation.
7.2 Prioritization Schedule
For each specific recommendation, a relative ranking (tier)
has been established to assist with the timeframe of
implementation for the recommendation. The Economic
Development Master Plan Committee established the tier
rankings for all the recommendations during prioritization
activities which were held for the Southlake Market,
Economic Incentives, Business Retention & Expansion and
Citizen & Community Engagement components of the plan.
The tiers are divided into three different categories based on
timeframe to implement:
Tier 1: 1 to 3 Years
Tier 2: 4 to 7 Years
Tier 3: 8 Years and beyond
The tier rankings are used in the development of department work plans as well as the Capital
Improvements Program (CIP). In fact, the Capital Improvements Program (CIP) planning process begins and
ends with projects recommended by all master plans in the City's comprehensive plan. Annually, as part of
the City's budget process, city staff analyzes the adopted master plans and develops a comprehensive list of
projects with preliminary cost estimates for inclusion in the proposed departmental budgets and the CIP.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year
The proposed departmental budgets and CIP are submitted to
the City Manager's Office and the CIP Technical Committee
(department directors), who will evaluate the requests based on
a number of City Council priorities including this master plan.
The priority tiers that were developed during this master plan
will help guide future members of the City's boards and City
Council when making decisions related to the adoption of the
City's annual operating budget and the CIP.
While these tiers provide the ideal order of implementation and
desired priority for the economic development
recommendations, all recommendations are subject to available
funding during the given budget year.
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Southlake 2035 1 Ordinance No. 1157, Adopted on Month Day, Year -
Economic Development Recommendations
Reserved for final complete list...
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