Item 4C
Approve Ordinance No. 1161, 1st Reading, CP16-005, adopting the City of Southlake Economic Development Master Plan an element of the Southlake 2035 Comprehensive Plan.
Item 4C
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Background
Southlake 2035 Economic Development PLAN
Community Enhancement Development Corporation
City Council members - This is item 4C on your consent agenda – First reading consideration of the 2035 Economic Development Plan for the City of Southlake. The council is familiar
with the 2030 plan and all the elements. The next phase of comprehensive planning in Southlake, Southlake 2035, is now underway which will include an update of all the 2030 plan elements
and the some new additional elements. The comprehensive plan elements are a reflection of the community's values and serves as the blueprint for Southlake's future. The plans establish
a frame work for capital projects, resource allocations, programs and shape departmental work plans. The Planning and Zoning Commission play a major role in the development of the Southlake
2035 plan elements and will serve as the committee that will oversee the development of many of the plan elements. Also the City’s charter requires that the Planning and Zoning commission
provide a recommendation to the City Council on the comprehensive plan elements.
The development of the plan was overseen by the Community Enhancement and Development Corporation (CEDC).
This is a newly created board is governed by a board of seven Southlake residents who have been appointed by the City Council. The two primary goals of this board are to work jointly
with the City Council to ensure that funds raised through the 3/8 cent Type A sales tax that the voters approved are spent on the construction and operation of The Marq Southlake facility.
Also a goal of this board well is pursuing the recommendations of the Economic Development and Tourism Master Plan.
The economic goal of the City of Southlake is to sustain a
strong and healthy economy. 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. Vibrant commercial and office sectors make it possible to maintain a stable tax rate, meet service level expectations and even offer targeted tax relief through tools such
as the homestead exemption.
The purpose of this plan is to provide a blue print to ensure that economic development occurs in a successful manner and is aligned with the goals of
the city. The plan accomplishes through a series of recommendations that lays out efforts, programs and departmental work plan initiatives.
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So why is the City updating the plan now? The last economic development and tourism plan was in 2011.
Several
studies conducted since 2011 adoption
More information available today than 6 years ago (MXD Studies)
The development of the plan was overseen by the Community Enhancement and Development
Corporation (CEDC). This is a newly created board is governed by a board of seven Southlake residents who have been appointed by the City Council. The two primary goals of this board
are to work jointly with the City Council to ensure that funds raised through the 3/8 cent Type A sales tax that the voters approved are spent on the construction and operation of The
Marq Southlake facility. Also a goal of this board well is pursuing the recommendations of the Economic Development and Tourism Master Plan.
In 1979, the Texas Legislature passed
the Development Corporation Act of 1979 (Texas Revised Civil Statutes Article 5190.6). The Development Corporation Act of 1979 (the “Act”) allowed a municipality to create nonprofit
development corporations that could promote the creation of new and expanded industry and manufacturing activity within the municipality and its vicinity. The development corporations
operated separately from the municipalities, with boards of directors that would oversee their efforts. First, in 1989, the Texas Legislature amended the Act by adding Section 4A, which
allowed the creation of a new type of development corporation. The legislation provided that a Section 4A development corporation could be funded by the imposition of a local sales and
use tax dedicated to economic development. The tax could be levied only after its approval by the voters of the city at an election on the issue.
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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.
C1 Achieve the highest standards of safety & security
C2 Provide travel convenience within City & region
C3 Provide attractive & unique spaces for enjoyment of personal interests
C4 Attract & keep top-tier businesses to drive a dynamic & sustainable economic environment
C5 Promote opportunities for partnerships & volunteer involvement
Serve our Customers
Manage the Business
B1 Achieve best-in-class status in all City disciplines
B2 Collaborate with select partners to implement service solutions
B3 Enhance resident quality of life & business vitality through tourism
B4 Provide high quality services through sustainable business practices
B5 Enhance service delivery through continual process improvement
B6 Optimize use of technology
Provide Financial Stewardship
Promote Learning and Growth
F1 Adhere to financial management principles & budget
F2 Invest to provide & maintain high quality public assets
F3 Achieve fiscal wellness standards
F4 Establish & maintain effective internal controls
L1 Ensure our people understand the strategy & how they contribute to it
L2 Enhance leadership capabilities to deliver results
L3 Attract, develop & retain a skilled workforce
L4 Recognize & reward high performers
L5 Empower informed decision-making at all levels in the organization
C6 Enhance the sense of
community by providing excellent customer service and citizen engagement opportunities
L6 Foster positive employee engagement
Deliver on Our Focus Areas
The City of Southlake works under a Strategic management System and the City staff works closely with the City Council to adopt a Strategic management System based on a balanced scorecard
framework focusing on our customers, internal business, financial and learning and growth. Through this system the City can provide more effective services to the citizens. Ultimately
the SMS determines how we should invest our time and resources. As such for the all the recommendations in this plan and all comprehensive plans will be aligned with the objectives
of the plan as well the objectives outlined on this map.
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Alignment and framework recap – Remind the committee that the 2035 plan elements are policy documents that provide
the framework or blueprint for programs, expenditures, policy, and work plans. Will guide the work of the ED department and other departments for the next five years. All recommendations
need to be aligned with the City of Southlake Strategic Map and you will see in the recommendation matrix – the alignment with the strategy map the VGO link and the department responsible
for carry out the task. CB04, CBo1, CB05
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Vision, Goal & Objectives
Southlake 2035 Economic Development Plan
Vision Statement
Southlake will continue to enhance its status as a desirable, attractive, safe, healthy and fiscally-sound community with quality neighborhoods, while maintaining a
high standard of living, learning, shopping, working, recreation, and open spaces. Southlake will continue to be a vibrant community that epitomizes both economic and environmental sustainability.
Further strategic alignment
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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
ED Plan Strategies
Objectives which the committee approved at its first meeting – capsulizing the plan (strategies)
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TARGET INDUSTRIES
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, the study determined 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 understand this, MXD performed a retail supply and demand analysis,
among other analyses, to come to a conclusion and recommendations.
Based on the MXD reports the City has redefined its target areas
Niche Retail
- 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)
Office
Corporate headquaters
and regional offices (large scale, build to suit);
Multi tenant garden style (professional services, acountants, engineers,
Medical and Health care
- 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
Finance, Insurance and Wealth management
- Corporate headquarters
and regional offices
Information Technology and media
Corporate headquarters and regional offices
Professional services
Telecommunications
Biotechnology and Pharmetcituals
Corporate
headquarters and regional offices
Research and development
And as you will see in the next few slides there are number of recommendations tied back to the target industries STOP
such
as 1) alining the incentive policy to meet the objectives of the City to attract target industries, 2) continuous monitoring of target industry performance metrics to evaluate the health
of the industry, 3) conducting a continous inventory to ensure saturation is understood, 4) CREATION OF the culinary action plan to attract niche restaurants, 5) collection of health
data collection criteria to assist is attracting specialty physicians or other medical/wellness type industries. Also, there are recommendations related to the upcoming Land use plan
revision which include possibly defining a medical corridor and defining more specific areas for multi-tenant garden office.
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4 Areas of Focus
Southlake 2035 Economic Development & Tourism Advisory Board
Sec. 3 - Southlake Market
Sec. 4 - Economic Incentives
Sec. 5 - Business Retention and Expansion
Sec. 6 - Citizen and Community Engagement
There are 4 main sections or areas of focus of the plan. This includes:
Section 3 - The Southlake Market section focuses on attracting and promoting the City’s target industries, and
promoting key areas for development along the major corridors.
Sec. 4 The Economic Incentives Section is focused on providing recommendations that facilitates investments and motivates
businesses to locate in Southlake.
Sec. 5 Business retention and expansion section makes recommendations regarding the retention and expansion of existing businesses. It is the intent
of this section to help the City understand local business needs and respond - so that businesses stay, grow, and become more committed to the community. Sales tax = revenue – keeps
City taxes low.
Sec. 6 And lastly, Citizen and community engagement section will be focused on the efforts in the plan to reach out to Southlake’s local residents and promote the
economic development efforts in the community. – including ROI on incentivized developmnent.
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SUMMARY - SOUTHLAKE MARKET RECOMMENDATIONS
Customer Relationship Management Tool
Target Industries
Small Area Planning
Daytime Population
GIS Based Multimedia
Southlake’s market and economic position
I will quickly go over the recommendations for each section - Page 31- Report
CRM ED 1 – Create a strong network of relationships that will generate high quality leads Implementation
of the customer relationship management tool - 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.
Recommendations ED 2 – 7 are related
to the City’s identified target industries ED 2 – Use data to quantify the strength of the City’s target industries Addresses Use of data to monitor and target industry performance
measures, inventory, saturation points); ED 3 – Addresses the attraction of unique and independent restaurants (development of a culinary plan); ED-4 – addresses promotion of Southlake
as a medical wellness hub – which specialties would do well given our demographics and income level. ED 5 – Identify a medical district on the SL land use plan (114 easy access); ED-6
Encourage development of office campuses (Corporate headquarters north of SH 114 – certain land areas should be prioritized for incentives. ED 7 – Evaluation Multi tenant garden office
supply and demand – identify these areas more specifically – not on SH 114.
ED 8 and 10 – Small area planning – Carillon specifically identified. Other critical areas.
ED 9 _ Multimedia
– Develop and provide GIS – based multimedia and map based web services that provided information on key sites – point out the number of applications. (Marketing and Promotions)
ED
11 – Daytime population – study to define a healthy daytime population – maintain service level – market provide through daytime population not rooftops.
ED 12 – Communicate SL advantageous
market and economic position. Updating proposal templates to respond to respond to prospects more quickly; Create sales presentation templates to showcase for prospects and site selectors;
marketing materials that promote the benefits of being in SL airport, world class business workforce, (Marketing and Propmotion)
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SUMMARY – ECONOMIC INCENTIVE RECOMMENDATIONS
Strategic Investment of Public Funds
Public Investment Monitoring and Reporting
Funding Economic Development Goals
Page 39
ED 13 – Facilitate Strategic Investment of public funds to attract and retain high quality businesses – Clear economic development incentive guidelines aligned your EDT plan
(target industries), policy should be quantifiable in nature (results based) so that ROI can be determined as wwll as quality of life benefits.
ED 14 – Ensure ongoing monitoring and
reporting of projects that receive incentives.
ED 15 – Maintain dedicated funding to achieve economic development goals
ED 16 - Set up a process so CEDC board can ensure that
CEDC and Economic Development and Enhancement fund spending are in accordance with golas, policies and recommendations of the master plan.
Establish an economic development investments
fund to help retain and attract employers, as well as to retain and expand existing businesses, 150 K – 250 K moving forward. Fund balance 1.9 million.
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SUMMARY – BRE Recommendations
Commercial Centers
Business Owners/Employers
Alternative Mode of Transportation
Business Community
p. 46
ED 17 & 18 – Create opportunities for the City to learn about concerns and need of the business community (visitation program w performance metrics); Hosting of round tables.
(18) marketing of new businesses – creation of a marketing plan
ED 19 – Improve and strengthen existing commercial centers – monitor leasing activity, create a plan for assisting property
owners and brokers with marketing large vacancies, help identify and implement solutions such as traffic/parking that discourage shopping and dining
ED 20 & 21 – Ensure adequate networking
opportunities for business owners exist - work with strategic partners to enhance networking programs for the entire business community, (21) conduct a business climate survey.
ED
22 – Provide an alternative mode of transportation with key stops in the City.
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SUMMARY – CITIZEN AND COMMUNITY ENGAGEMENT Recommendations
Promote Awareness of ED Activities
Communication – Exceed Industry Standards
Page 50
ED 23 – Promote awareness of economic development activities – is can be trough an annual report, multimedia tools, social media
ED24 – Host a website that is professional
and exceeds industry standards – review the web page against International Development Council best practice standards – use web page analytics to analysis and customer inpu to upgrade
the web site.
ED 25 – Provide relevant and interesting business and economic news on a timely basis
(blog, annual economic vitality report – new businesses, business expansion,
occupancy rates by sectors – by development, jobs created, daytime population.
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CEDC/PZ Recommendations
June 28, 2016 - The CEDC approve (7-0) the proposed Southlake 2035 Economic Development Master Plan as presented.
August 16, 2016 - The Planning and Zoning Commission held a public
hearing on the proposed Economic Development Plan (Approved 4-0).
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Questions
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Vision, Goal & Objectives
Southlake 2035 Economic Development & Tourism Advisory Board
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.
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