RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy
Prepared for the City of Richmond
October 2010
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy
CONTENTS
Acknowledgements......................................................................................................................................................................................................................2
Introduction ..................................................................................................................................................................................................................................3
Executive Summary.....................................................................................................................................................................................................................4
Analysis of the Local Economy....................................................................................................................................................................................................9
Regional Labor Market ..............................................................................................................................................................................................................26
Infrastructure..............................................................................................................................................................................................................................33
Economic Opportunity Sectors ..................................................................................................................................................................................................36
Target Industry Analysis ............................................................................................................................................................................................................39
Workforce Retention and Expansion .........................................................................................................................................................................................68
Project Development Opportunities and Prioritization...............................................................................................................................................................74
Economic Opportunity Site Strategy..........................................................................................................................................................................................82
Institutional Framework for Development..................................................................................................................................................................................87
Public Infrastructure Needs .......................................................................................................................................................................................................88
Short- and Long-Term Retention Strategies and Actions..........................................................................................................................................................91
Short-Term Attraction Strategies and Actions ...........................................................................................................................................................................96
Long-Term Programs, Tools, and Actions.................................................................................................................................................................................99
Implementation Matrix .............................................................................................................................................................................................................112
Program Performance Measures ............................................................................................................................................................................................122
Appendix A: Historical & Forecast Economic Indicators .........................................................................................................................................................127
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy
ACKNOWLEDGEMENTS
TIP Strategies would like to thank the many individuals who participated in
the development of this plan. We are particularly grateful to the business and
public sector representatives who generously gave their time and input. Their
knowledge and creativity contributed greatly to our understanding
Richmond’s development opportunities and our recommendations.
We would also like to thank the CEDS advisory committee as well as the
leadership and staff of the City of Richmond for their critical guidance,
support, and feedback.
Richmond Mayor and City Council
Dwight C. Jones, Mayor
Kathy C. Graziano, Council President
Ellen F. Robertson, Council Vice President
Bruce W. Tyler
Charles R. Samuels
Chris A. Hilbert
E. Martin Jewell
Cynthia I. Newbille
Reva M. Trammell
Douglas G. Conner, Jr.
Richmond CEDS Advisory Committee
Gina Burgin
Charles Finley
Margaret Freund
James Harris
Brian Jackson
Ken Johnson
Garth Larcen
Jon Lugbill
Scott Garnett
Candice Streett
Milton Vice
Tinh Phan
John Bennett
Robert Blue
Robert Crum
William Roberts Jr.
About TIP Strategies
TIP Strategies, Inc. (TIP) is a privately held Austin-based business
and economic development consulting firm committed to providing
quality solutions for both public and private-sector clients.
Established in 1995, the firm’s areas of practice include economic
development consulting, strategic planning, site selection, economic
impact analysis, regional economic development, target industry
analysis, cluster analysis, technology audit, transit-oriented
development, workforce analysis, feasibility studies, market analysis,
and redevelopment analysis and planning.
Richmond Project Team
Jon Roberts, Managing Director
Alex Cooke, Project Director
Alan Cox, Project Consultant
106 E. 6th Street, Suite 550
Austin, Texas, 78701
512.343.9113 (voice)
512.343.9190 (fax)
[email protected]
www.tipstrategies.com
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy
INTRODUCTION
The City of Richmond engaged TIP Strategies (TIP) to prepare a
comprehensive economic development strategy, or CEDS, for the city.
The following recommendations are the result of a 12-month process
incorporating input and ideas from key stakeholders throughout the
community. The purpose of the plan is to identify, prioritize, and present
Richmond’s key development opportunities, especially those projects
eligible for Economic Development Administration (EDA) investment
assistance.
The third section contains short- and long-term strategies and actions
related to public infrastructure, business retention and attraction,
marketing, and redevelopment.
Finally, the plan offers several measures to gauge the success of the
plan’s implementation as well as the overall economic growth and vitality
of Richmond.
The information for this planning effort was gathered primarily through
stakeholder interviews and a public forum. The consulting team
conducted Interviews and discussions with numerous individuals
representing business, government, regional planning, education,
neighborhood groups, and economic development at the local, regional,
and state levels. The consulting team also led a public input forum to
gather citizen input on the city’s key development opportunities. TIP
would like to thank the individuals who gave their valuable time to
participate in this process. We would also like to thank Department of
Economic and community Development (DECD) staff for helping to
schedule and organize meetings.
The plan itself is organized into four sections: analysis of the local
economy, development opportunities analysis, development strategies
and actions, and program evaluation measures.
The economic analysis section includes quantitative and qualitative
assessments if Richmond’s socio-economic trends, industry composition,
regional labor market, infrastructure, and economic opportunity sectors.
The development opportunities analysis looks at target industries,
workforce retention and expansion, project development opportunities
and prioritization, and economic opportunity site strategies.
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Comprehensive Economic Development Strategy – Executive Summary
EXECUTIVE SUMMARY
The City of Richmond engaged TIP Strategies (TIP) to prepare a
comprehensive economic development strategy, or CEDS, for the city.
The following recommendations are the result of a 12-month process
incorporating input and ideas from key stakeholders throughout the
community. The purpose of the plan is to identify, prioritize, and present
Richmond’s key development opportunities, especially those projects
eligible for Economic Development Administration (EDA) investment
assistance.
The information for this planning effort was gathered primarily through
stakeholder interviews and a public forum. The consulting team
conducted interviews and discussions with numerous individuals
representing business, government, regional planning, education,
neighborhood groups, and economic development at the local, regional,
and state levels. The consulting team also led a public input forum to
gather citizen input on the city’s key development opportunities.
The Challenge
Richmond has a legitimate claim to being a world-class city. It will come
as no surprise that this is both a blessing and a curse. It represents a
unique occasion to claim new and emerging industries. At the same time,
it places expectations and demands on the city – and regional –
leadership that will be difficult to meet. That difficulty centers around two
major issues: the preparedness of the workforce and the capacity to
build and sustain innovative industries.
The Workforce
The importance of a skilled workforce cannot be overstated. The chart
below, showing national unemployment figures by educational
attainment, tells a stark story. If you do not have a high school diploma,
you are more than three times as likely to be unemployed as someone
with a college degree. And high school graduates are 40 percent more
likely to have a job than those who didn’t graduate.
NATIONAL UNEMPLOYMENT RATE BY EDUCATION, 25+ YRS.
(seasonally adjusted)
16.0%
Recession
Recession
Less than a high school diploma
High school graduates, no college
College graduates
All educational levels, 25+ years
14.0%
12.0%
14.0%
10.0%
10.3%
8.0%
8.3%
6.0%
4.6%
4.0%
2.0%
0.0%
Jan‐99 Jan‐00 Jan‐01 Jan‐02 Jan‐03 Jan‐04 Jan‐05 Jan‐06 Jan‐07 Jan‐08 Jan‐09 Jan‐10
Sources: U.S. Bureau of Labor Statistics (employment); National Bureau of Economic Research (recession dates)
In other words, education matters. It follows that communities that lag in
educational attainment will lag even further in future economic growth.
This is true because the gap between unemployment and educational
attainment is growing larger, and will continue to do so as employers
require higher skill levels.
If Richmond does not place the utmost emphasis on education and
workforce training, it will simply not be competitive in the international
marketplace.
Innovation Capacity
The importance of a strong and vibrant industry cluster – one that can
capitalize on national growth trends and international investment – is
essential to a city and a region. Whether that cluster is semiconductors
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Comprehensive Economic Development Strategy – Executive Summary
(Austin), software (Seattle), or aviation (Wichita), they all contribute
enormously to the overall vibrancy of the region. Richmond has that
opportunity with life sciences and biotechnology. It has the institutional
framework, the educational infrastructure, and the vision to capitalize on
that sector.
While many communities have made investments to develop the life
sciences/biotechnology sector, few have realized substantial returns on
their investment. In Richmond, however, the elements of a cluster have
been steadily coming together. The Virginia Biotechnology Research
Park is now acting as a magnet for companies seeking to relocate, as
well as a breeding ground for new ideas and innovation.
The challenge, however, is to maintain that momentum. There is no
certainty that the advantages of a Richmond biotech cluster will not be
usurped by other cities. While the initial emphasis on biotech has waned
during the recession, states as diverse as Texas, Wisconsin, and Oregon
are seeding major new initiatives. Without a sustained commitment
investment of resources, Richmond’s edge will be compromised.
While this plan is directed primarily towards federal initiatives, there is a
strategic element that goes further. Specifically, the emphasis is on
projects that advance workforce skills and provide greater capacity to
building and sustain knowledge-based industries, such as the life
sciences and biotechnology sector.
The Response
TIP assessed and prioritized the city’s development and redevelopment
opportunities with the current strategic economic development priorities
at the national level in mind. Consideration of national investment
priorities in this process matters. The Economic Development
Administration (EDA) requires a CEDS in order for a community or
region to apply for investment assistance under EDA's Public Works or
Economic Adjustment Assistance programs. Therefore, local projects
that align with national investment priorities will be more likely to receive
federal investment assistance.
EDA has established a number of investment programs designed to
assist regions and communities to become more competitive in the
global economy. The agency allocates its investment assistance through
a competitive grant process. To facilitate the evaluation of competing
grants, EDA has established the following investment priorities:
•
Collaborative Regional Innovation
•
Public/Private Partnerships
•
National Strategic Priorities
•
Global Competitiveness
•
Environmentally-Sustainable Development
•
Economically Distressed and Underserved Communities
EDA also favors projects that demonstrate the ability to use funds quickly
and effectively and are linked to specific and measureable outcomes.
Additionally, EDA favors initiatives that support the national strategic
priorities pursued by the federal government, which are intended to
promote job creation and business expansion in the following areas:
•
Clean energy
•
Green technologies
•
Sustainable manufacturing
•
Information technology infrastructure
•
Communities impacted by auto industry restructuring
•
Natural disaster mitigation and resiliency
•
Access to capital for small/medium & ethnically diverse enterprises
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Comprehensive Economic Development Strategy – Executive Summary
•
Innovations in science, healthcare, & alternative fuel technologies
In addition to federal priorities, TIP included in its analysis two other
critical considerations: (1) does a project align with local economic and
community development priorities and (2) will the private sector support
it. The intersection of the national, local, and market considerations is the
focal point for the consulting team’s evaluation of development and
redevelopment opportunities in Richmond.
What EDA prefers
What the community wants
•
Focus (is the project well defined?)
•
Impact (e.g., well-paying jobs, tax base, private investment)
•
Does it meet EDA priorities?
•
Does it support local considerations? (e.g., political & community
support, links with community development priorities)
•
Market viability (Will the private sector support it?)
•
Schedule (Can it be achieved expeditiously & realistically?)
According to TIP’s analysis and scores, the two highest priority
sites/projects for pursuing EDA investment assistance are the following:
•
Bio Tech Park Expansion: The development of the Virginia
Biotechnology Research Park has been a major achievement in
establishing Richmond as a center of life sciences education,
research and development, and commerce in the eastern US. TIP
recommends the City of Richmond work with the state and local
partners in the park to pursue an EDA investment grant to fund a
portion or all of the costs of developing the proposed Virginia Life
Sciences Commercialization Center (VLSCC) as part of the
Biotech Ten expansion. The development of Biotech Ten has the
potential to expand the park’s impact on the city and the region by
attracting and retaining high value jobs and investment as well as
inspiring new generations to pursue careers in one of the nation’s
most important fields.
•
Armstrong High School: The redevelopment of Armstrong High
School into a modern skills development and education center
represents a significant economic and community development
opportunity for Richmond. However, for it to have the greatest
impact on the citizens and businesses of Richmond, TIP
recommends an ambitious redevelopment involving a new facility
constructed with green building technologies and utilizing state-ofthe-art facilities and equipment. Such an approach has greater
What the market supports
TIP evaluated 16 sites/areas that were identified by the City and the
consulting team as “high priority” for new development or redevelopment
opportunities. Many of the proposed sites/areas have significant
development potential and offer real economic opportunity. However, not
all are appropriate for EDA or City investment assistance. To prioritize
development opportunities most suitable for EDA and City support, TIP
utilized a project evaluation matrix for scoring each project according to
the following six criteria:
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Comprehensive Economic Development Strategy – Executive Summary
probability of helping to revitalize the East End and prepare
Richmond’s residents for the jobs of tomorrow.
Many of the other sites/areas represent high priority economic
development investment needs for Richmond. However, TIP feels that
the Bio Tech Park expansion and redevelopment of the Armstrong High
School site represent the development opportunities with the highest
potential for receiving EDA investment assistance. These projects also
address the challenges Richmond faces in expanding its capacity to
build and sustain innovative industries and preparing its workforce to fill
the jobs of tomorrow.
In addition to the expanding the Biotech Park and redeveloping
Armstrong High School, TIP recommends the City of Richmond
commit to a long-term (20-year) strategy for redeveloping an area
within the city for light industrial, commercial, information
technology, and R&D activities. In 2001-2002, the City of Richmond
engaged TIP to assist in developing a long-term economic development
strategic plan. A central finding of that plan was the lack of suitable sites
in Richmond to accommodate major new developments. To address this
need, the consulting team recommended a “Richmond Redevelopment
Initiative” involving the identification and assembly of up to 200 acres for
a new tech/industrial park or corridor. Eight years later, Richmond still
lacks the shovel-ready sites and buildings necessary to compete with the
surrounding counties for new large- and medium-sized investment
prospects.
Therefore, TIP once again recommends the City and its economic
development partners pursue a long-term “Richmond Redevelopment
Initiative” to position the city for attracting new employment opportunities
and private investment. This initiative should become a primary focus for
DECD. The primary zoning of the land will be for light industrial, R&D,
information technology, and commercial uses. The land should form a
contiguous park or corridor suitable for medium and large-size
companies to locate operations. As an element of this corridor, the City
should ensure direct links to the Biotech Park and Advantech to meet the
facility needs of expanding entrepreneurial companies.
The best opportunities for such a redevelopment initiative lie south of the
James River, especially in the Manchester area and along Commerce
Road. The area benefits from rail access; proximity to I-95, the Port of
Richmond, and the airport; existing infrastructure; and land that could be
made available for development.
The Richmond Redevelopment Initiative will require the creation of a new
independent commission charged with planning, coordinating, and
administering the project. TIP recommends the City establish a new
Richmond Redevelopment Commission to fill this role. Though
independent, the commission should work closely with both the City of
Richmond and the Economic Development Authority to ensure the
initiative’s success. While the City and the EDA have responsibilities to
the larger community, the new development commission should be
entirely focused on the redevelopment initiative.
Other priority recommendations and strategies include:
•
Establish a Technology Zone that is linked to the Richmond
Redevelopment Initiative.
•
Continue diversifying Richmond’s economic base by pursuing a
target industry strategy emphasizing knowledge-based industries.
•
Strengthen the City of Richmond’s participation in Business First
Richmond.
•
Pursue new investment opportunities from companies in the
Richmond region and in Northern Virginia seeking to consolidate
facilities.
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Comprehensive Economic Development Strategy – Executive Summary
•
Ensure that the Greater Richmond Partnership is aggressively
marketing and promoting existing sites in Richmond as part of its
business recruitment efforts.
•
Redesign the DECD section of the City’s website.
•
Consider the use of other incentive tools such as Tax Increment
Finance (TIF) districts, development fee rebates, energy efficiency
retrofit grants, and a revolving loan fund (RLF) focused on life
sciences enterprises.
•
Bring the business, workforce training, and education communities
closer together.
•
Initiate a regional advertising and marketing program that targets
the Greater Richmond Area and Northern Virginia.
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Comprehensive Economic Development Strategy – Analysis of Local Economy
ANALYSIS OF THE LOCAL ECONOMY
Purpose and Scope
The purpose of this analysis is to arrive at a common understanding of
the Richmond area’s existing economic strengths and weaknesses. This
analysis is expressed in the context of the metropolitan, regional, and
national economies as a means understanding Richmond’s relative
position in a national context and highlighting its latent and potential
competitive advantages.
TIP has drawn upon our past experience working in the Richmond area,
as well as our deeper knowledge working in areas throughout the United
States. We have applied this knowledge and experience to both
qualitative and quantitative analysis methods for developing a full
understanding of the Richmond economy. We based our findings on the
following elements:
• A review of relevant studies, plans, and other material provided
by the City of Richmond.
• A review of economic and demographic data from various federal,
state, and private sources, including the U.S. Bureau of the
Census, the U.S. Department of Labor, the U.S. Bureau of
Economic Analysis, and Moody’s Analytics.
• A review of published material from other public entities such as
the Greater Richmond Partnership, the Greater Richmond Transit
Company, and the Virginia Department of Transportation.
• Interviews with a number of key stakeholders.
• Field reconnaissance of the physical and economic geography of
Richmond.
The team has met with representatives from the following
organizations:
• The City of Richmond
•
The Greater Richmond Partnership
•
The Richmond Chamber of Commerce
•
The Port of Richmond
•
Virginia Commonwealth University
•
Greater Richmond Transit Company
•
Richmond Regional Planning District Commission
•
Shockoe Bottom Association
•
Virginia Biotechnology Research Park
•
Venture Richmond
•
City Lights (Jackson Ward)
•
Virginia Economic Development Partnership
•
Richmond Sports Backers
In addition, TIP conducted site visits of a key
development/redevelopment opportunity sites in the city,
including:
• Azalea Mall
•
The Boulevard
•
Richmond Technical Center
•
Cloverleaf Mall
•
Jefferson Davis Highway
•
South and North Reynolds sites
•
Nine Mile Road Gateway
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Demographic Indicators
Figure 1: Annual Population Growth, 1970-2030
Population > Over the last three decades, population growth within
the city of Richmond has failed to keep up with growth in the broader
Richmond- MSA. According to Census estimates, the MSA gained over
481,000 residents between 1970 and 2008, while Richmond lost almost
48,000 residents over the same period. Most all of Richmond’s
population loss occurred between 1970 and 1989. Then, between 1990
and 2008, the city’s total population remained stagnant.
Richmond MSA
1,600,000
history
projection
1,400,000
Total Population
The following section describes key demographic indicators for both the
city of Richmond and the Richmond-Petersburg Metropolitan Statistical
Area (MSA). It includes historical trends as well as population projections
to 2030. The population forecast was developed by Moody’s Analytics, a
leading independent provider of economic analysis, data, forecasting,
and credit risk services.
1,200,000
1,000,000
800,000
600,000
400,000
200,000
According to projections developed by Moody’s Analytics, the city’s
population should begin consistently growing again over the next two
decades. Moody’s expects the city’s population to grow by 24 percent,
roughly the same rate of growth as projected for the greater MSA.
0
1970
2030
City of Richmond
Population Growth Rates
1970-2008
2009-2030
MSA
64.8%
25.9%
City
-19.2%
23.6%
Total Population
250,000
history
projection
200,000
150,000
100,000
50,000
0
1970
2030
SOURCE: US Census Bureau (history); Moody's Analytics (projections)
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Comprehensive Economic Development Strategy – Analysis of Local Economy
If Moody’s projection is accurate, the population of Richmond will grow
by about 48,000 residents and reach approximately 252,000 by 2030.
While important, this would only get Richmond back to the population it
enjoyed in 1970.
Figure 2: Annual Net Population Change, 1970-2030
City of Richmond
+5,000
history
projection
+2,500
+0
Net Change
Figure 2 shows the annual net change in Richmond’s population. With a
few exceptions, Richmond suffered net population losses each year
between 1970 and 2004. The most severe losses occurred in the 1970s
and in 1995, when the population contracted by 4,669 residents. Since
then, Richmond experienced only modest annual losses or gains. In
2005, however, the City began an incremental four-year growth period,
which Moody’s projects to continue well into the future. The projection
shows the city adding between 2,000 and 2,500 residents each year until
2030.
-2,500
-5,000
-7,500
The MSA, in comparison, is projected to add over 320,000 residents over
the same period, culminating in a total regional population of over 1.5
million. Moody’s projects net annual population growth in the MSA to
stabilize at about 15,000 residents per year through 2030.
-10,000
1970
2030
Richmond MSA
+25,000
history
projection
Net Change
+20,000
+15,000
+10,000
+5,000
+0
1970
2030
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Comprehensive Economic Development Strategy – Analysis of Local Economy
components of population change provides insight into the growth
differentials between the city and the MSA. The U.S. Census Bureau
tracks three components of population growth: natural increase,
immigration, and domestic migration.
The first two components – natural increase (net difference in births and
deaths) and immigration (international migration) – typically change
gradually over time. Figure 3 reveals, however, that this has not always
been the case in the city of Richmond since the Census Bureau began
tracking these records in 1991. For example, international migration to
Richmond was generally stable and positive during the 1990s. Then, in
2000 the city experienced a dramatic drop in international migration,
resulting in a net loss of over 1,000 international residents. Since then,
net immigration to the city has been much lower than in the previous
decade. Additionally, Richmond has experienced periodic variations in
natural population increase over the last two decades.
Figure 3: Components of Net Population Change
CITY OF RICHMOND
Domestic Migration
Immigration
Natural Increase (births minus deaths)
+5,000
+2,500
Net Change
Components of Population Change > A look at the
+0
-2,500
-5,000
-7,500
1991
Figure 3 shows domestic migration accounting for much of the
population growth within the broader MSA. New U.S. residents to the
metropolitan region peaked between 2004 and 2007, reaching a high of
13,292 in 2006. Also, as in Richmond, international migration to the MSA
decreased substantially in the 2000s compared to the 1990s.
2008
RICHMOND MSA
Domestic Migration
Immigration
Natural Increase (births minus deaths)
+25,000
+20,000
Net Change
The third and most volatile component of growth is domestic migration.
This component is made up of U.S. residents moving between Richmond
and other parts of the nation. Domestic migration into the city has been
mostly negative since the early 1990s. The most dramatic drop occurred
in 1995, when the city lost almost 6,000 domestic residents. Of note, net
domestic migration to Richmond began trending positive again in
recent years, culminating with a net gain of 937 domestic residents
in 2008. The city is actually bucking the regional trend in domestic
migration.
+10,000
+5,000
-5,000
+0
1991
2008
SOURCE: US Census Bureau (via Moody's Analytics)
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Comprehensive Economic Development Strategy – Analysis of Local Economy
residents include Fairfax County, Virginia Beach, and Kings County, New
York.
Migration > U.S. Census estimates of domestic migration represent a
net change. Internal Revenue Service (IRS) data, as shown below,
allows one to assess the origin and destination of residents (as
represented by the number of exemptions claimed). The IRS tracks the
movement of income tax filers from year to year at the county level (and
city level in Virginia). The figure below shows the top seven migration
flow patterns for the city of Richmond between 1991 and 2008. It reveals
the substantial annual outflows of residents from Richmond to nearby
counties within the MSA, especially Chesterfield and Henrico Counties.
However, net outmigration from Richmond to Hanover and Powhatan
Counties has actually subsided in recent years to a near neutral level.
Areas from which Richmond has attracted modest net inflows of
Figure 4: Major Migration Flows into & out of the City of Richmond
Chesterfield
Henrico
Hanover
Fairfax
Powhatan
Kings
VA Beach
County
County
County
County
County
County
City
VA
VA
VA
VA
VA
NY
VA
+500
Net Inflow +250
+0
-250
Net Outflow
-500
-750
-1,000
-1,250
-1,500
-1,750
-2,000
+500
+250
Net Inflow
+0
-250
Net Outflow
-500
-750
-1,000
-1,250
-1,500
-1,750
-2,000
1991
2008 1991
2008 1991
2008 1991
2008 1991
2008 1991
2008 1991
2008
SOURCE: U.S. Internal Revenue Service (accessed via Moody's Analytics)
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure 5 shows the top seven migration flow patterns for the Richmond
MSA between 1991 and 2008. The region attracts most of new domestic
residents from Washington, New York, Hampton Roads, Charlottesville,
and Philadelphia MSAs. The MSA experienced a surge of new migrants
between 2004 and 2006, especially, from the Washington and New York
regions. In fact, between 2002 and 2008 the Richmond MSA received an
average annual net inflow 1,962 residents from the DC area and 1,470
residents from New York. The only metros on the list to enjoy a modest
net gain of Richmond area residents are Raleigh and Charlotte.
Figure 5: MSAs with Major Migration Flows into & out of the Richmond MSA
Washington
New York
Hampton Rds
Charlottesville
Philadelphia
Raleigh
Charlotte
+4,000
+3,500
+3,000
+2,500
+2,000
+1,500
+1,000
+500
Net Inflow
+0
-500
Net Outflow
-1,000
+4,000
+3,500
+3,000
+2,500
+2,000
+1,500
+1,000
+500
Net Inflow
+0
-500
Net Outflow
-1,000
1991
2008 1991
2008 1991
2008 1991
2008 1991
2008 1991
2008 1991
2008
SOURCE: U.S. Internal Revenue Service (accessed via Moody's Analytics)
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Age Distribution > Figure 6 shows the evolving
History
100%
City of Richmond
History
Projection
Projection
Seniors (65+)
100%
Seniors
(65+)
90%
90%
80%
70%
80%
Experienced
Working Age (3564)
Experien
ced
Working
Age (3564)
60%
70%
60%
50%
40%
50%
Young
Adult (2034)
Young Adult (20-34)
30%
20%
30%
20%
Youth (019)
Youth (0-19)
10%
40%
Percent of Total Population
Richmond MSA
10%
2030
2020
2010
2000
1990
1980
2030
2020
2010
2000
0%
1990
0%
1980
The figure illustrates the overall similarity in age
distributions (current and projected) between the city
and the MSA. While the MSA enjoys a slightly larger
percentage of experienced working age residents, the
city of Richmond has a slightly higher percentage of
young adults. These distributions are not surprising
given that young adults tend to prefer urban lifestyles,
while older professionals – especially those with
children – tend to prefer suburban settings. The city
and the MSA are projected to maintain a stable (about
25 percent) base of youth over the next two decades.
Figure 6: Age Distribution of the Population, 1980-2030
Percent of Total Population
age distribution of Richmond and the MSA projected
over a 50-year time period, from 1980 to 2030.
Seniors currently make up less than 15 percent of
population for both the city and the MSA. Their share
of the overall population, however, is projected to
increase over the next two decades. By 2030,
Moody’s projects seniors will account for 22 percent
of the population in Richmond and 18 percent of the
population in the MSA. This trend is not unique to the
region, as similar demographic trends are occurring
nationwide.
SOURCE: US Census Bureau (history); Moody's Analytics (projections)
Page 15
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Economic Indicators
The following section includes key economic indicators, including
industry employment and unemployment rate forecasts. (See box
below for description of the forecast methodology and data sources.)
Job Growth > Job growth in 2009 proved disastrous nationwide
and the Richmond area was no exception. The city experienced a
net loss of over 8,000 jobs and the MSA (excluding the city) shed
over 22,000 jobs. The Richmond suburbs suffered a
disproportionate share of job losses in construction and
manufacturing.
A moderate recovery in job growth in 2010 should pull the suburbs
back in line with their annual job gains before the downturn. The city
of Richmond should bounce back with slightly more robust job
growth than it has experienced in recent years. However, it will take
years for the both the MSA and the city to recover from the shear
scale of job losses suffered in 2009.
Figure 7: Annual Net Change in Number of Jobs
City of Richmond
Richmond MSA (excluding city)
Forecast
+15,000
+15,000
+10,000
+10,000
+5,000
+5,000
+0
+0
-5,000
-5,000
-10,000
-10,000
-15,000
-15,000
-20,000
-20,000
-25,000
-25,000
-30,000
-30,000
-35,000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
-35,000
Forecast
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census
Bureau, EMSI, Moody's Analytics
The U.S. employment growth rates overall and by industry sector are taken from Economic Modeling Specialists, Inc.’s (EMSI) 2009 Q3 national forecast. These U.S. rates are applied to
Quarterly Covered Employment and Wages (ES202) historical data from the U.S. Bureau of Labor Statistics (BLS). The forecast assumes that all geography levels (city, MSA, and
commonwealth) will recover at rates in line with the nation as a whole. This is important because state and local forecasts themselves are rarely accurate in hindsight. Local economies
always depend on the health and growth of the larger national economy. Regardless of local dynamics, all local economies ultimately depend on the speed and timing of the U.S. cyclical
recovery and on macroeconomic national factors like interest rates, inflation, and the exchange value of the U.S. dollar.
To be a useful tool for the CEDS, economic forecasting must be more about benchmarking and scenario planning. By applying the broader U.S. forecast, we have a general idea of where
the nation is headed over the coming years. This then forms a benchmark for the region. If we assume that local industries are poised to grow at about the same rate as U.S. industries
overall (which is a logical assumption), then this exercise really helps to shed light on the local industry mix. In other words, if Richmond appears to be lagging, then we know the current
industry mix is inadequate to keep up with a changing, modernizing U.S. economy. The real questions can then be posed: Is our local industry mix adequate to match or outpace the
changing national economy? Is our workforce adequately prepared for this challenge?”
Page 16
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Our forecast shows that the job recovery will be slow, especially if
Richmond's job growth fails to exceed the national pace over the next
few years. It is anticipated healthcare will be the city's biggest job gainer
between 2009 and 2015. Additionally, sectors requiring commercial
office space such as government, professional services,
administrative services, and corporate headquarters should also
see relatively strong recoveries. Manufacturing is the only sector
anticipated to lose jobs in the near future.
Figure 8: City of Richmond Job Levels in 2008 with Anticipated 2009 Losses and 2009-2015 Net Changes
NAICS Sector
State government (including public universities)
Healthcare & social services
Local government (including public schools)
Corporate & regional headquarters
Professional & technical services
Accommodation & food services
Manufacturing
Administrative services
Retail trade
Miscellaneous industries*
Finance & insurance
Construction
Federal government (civilian & military)
Wholesale trade
Transportation & warehousing
Educational services (private)
Information & media
Real estate
City of Richmond Total
2008 jobs + 2009 net chg
24,114
21,726
11,141
10,853
10,795
9,138
9,138
9,056
9,054
7,721
7,316
6,886
5,969
5,008
3,328
2,975
2,895
1,951
159,063
+124
-504
+55
-502
-235
-515
-1,346
-1,057
-633
-1,517
-249
-987
+31
-215
-257
+52
-231
-97
-8,082
+ 2009-2015 net chg
+1,429
+3,190
+660
+1,035
+1,273
+945
-161
+1,504
+497
+791
+790
+700
+354
+309
+249
+466
+170
+474
+14,676
2008 jobs
2009 net chg
2009-2015 net chg
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics
Page 17
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Unemployment > The Great
Figure 9: Average Annual Unemployment Rate, 2004-2015
City of Richmond
Richmond MSA
forecast
Virginia
forecast
US Average
forecast
forecast
+11%
+11%
+10%
+10%
+9%
+9%
+8%
+8%
+7%
+7%
+6%
+6%
+5%
+5%
+4%
+4%
+3%
+3%
2012
2010
2008
2006
2004
2014
2012
2010
2008
2006
2004
2014
2012
2010
2008
2006
2004
2014
2012
2010
2008
2006
2004
So why does the unemployment rate
+2%
start to tick up again in the later years
+1%
of the forecast? This is because the
+0%
TIP
forecast
assumes
steady
population growth in Richmond (and
in the rest of Virginia) based on the
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics
most recent Moody's Analytics
forecast. For TIP's employment
forecast, however, we have assumed that job growth by industry sector
will parallel U.S. growth rates. The figure shows what will happen if
Richmond's industries grow at similar rates to the U.S. average. In order
for Richmond's unemployment rate to fall lower than this forecast
predicts, one of two things would need to occur: (1) faster job growth
than the national pace or (2) slower population and labor force growth
than Moody's Analytics anticipates for the region.
+2%
+1%
+0%
2014
Recession caused a dramatic spike in
unemployment in Richmond and
around the country in 2009. For the
city, unemployment rose to almost 11
percent in June 2009. While national
job recovery should begin in 2010, the
unemployment rate at the city,
regional, and state levels are not
expected to fall back to pre-recession
levels within the next five years. In
fact, rates may even climb again
beginning around 2014.
The unemployment rate forecast relies on Moody's population forecast by age cohort and assumes that the BLS national forecast of a relatively flat labor force participation rate. This
flat rate is assumed to hold true across the city, MSA, and commonwealth levels. It is also important to note that the unemployment forecast is always based on a household series,
which represents where people live, not where they work. In contrast, the employment forecast is based on place-of-employment data, (i.e., where the jobs are located.)
Page 18
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure 10: Annual Net Job Change in Selected Sectors
Construction
+3,000
+2,000
+2,000
+1,000
+1,000
+0
+0
Finance & Insurance
Professional Svcs.
Corp. HQs & Reg. Offices
2015f
2013f
2011f
2009f
2007
2005
2015f
2013f
2011f
2007
2009f
2005
2015f
2013f
2011f
2009f
2007
-6,000
2005
-5,000
-6,000
2015f
-4,000
-5,000
2013f
-3,000
-4,000
2011f
-2,000
-3,000
2007
-1,000
-2,000
2009f
-1,000
Healthcare
+10,000
Richmond MSA
(excluding city)
+9,000
City of Richmond
+7,000
+8,000
+6,000
+5,000
+5,000
+4,000
+4,000
+3,000
+3,000
+2,000
+2,000
+1,000
+1,000
+0
+0
2015f
2013f
2011f
2009f
2007
2005
2015f
2013f
2011f
2007
2009f
2005
-6,000
2015f
-5,000
-6,000
2013f
-4,000
-5,000
2011f
-3,000
-4,000
2009f
-2,000
-3,000
2005
-1,000
-2,000
2015f
-1,000
2013f
Sporadic, suppressed historical industry sector employment data at the
city and MSA levels have been estimated by TIP Strategies in order to fill
in missing gaps and to present a comprehensive employment history.
+4,000
+3,000
2011f
Both the city and the MSA experienced strong employment
growth in the healthcare sector in 2008, adding almost 10,000
new jobs. Contributing to this surge was the opening of the
new $192 million Critical Care Hospital at the VCU Medical
Center.
+5,000
+4,000
2007
Financial services can also be included in this cluster of
industries that historically show solid job growth in central
cities. Though the Richmond forecast for financial services is
relatively weak, TIP expects some ongoing fallout and
consolidation nationwide in banking and insurance, the
specifics of which are impossible to predict. Consolidation,
mergers, and acquisitions represent a double-edged sword
that will benefit some communities while simultaneously
hurting others.
Retail
+5,000
2009f
Like most central cities, Richmond is better positioned to
compete with the suburbs for less land-intensive sectors
such as healthcare, corporate headquarters, and
professional services.
Wholesale & Transp.
City of Richmond
2005
Moreover, our forecast shows that these sectors could take
years to recover the job losses incurred.
Manufacturing
Richmond MSA
(excluding city)
2005
Residential construction, manufacturing plants, distribution
centers, and shopping malls are land-intensive property uses
that grow disproportionately fast in the suburbs. Because of
the consumer-oriented nature of this recession, 2009 job
losses tied in these sectors werre more severe in the suburbs
than in the city of Richmond.
2007
Industry Composition
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics
Page 19
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Economic Linkages
Regional Employment Share > Figure 11
highlights the city’s place within the region as an
employment center. Overall, the city of Richmond is
home to 26 percent jobs in the (MSA). In comparison,
30 percent of the region’s jobs are located in Henrico
County, 20 percent are in Chesterfield County, and 8
percent are in Hanover County.
Figure 11: Balance of Jobs in the MSA between City and Suburbs (as of 2008)
City of Richmond
0%
10%
Remainder of MSA
20%
30%
40%
50%
60%
70%
80%
90% 100%
State government
Corporate & regional headquarters
Educational services (private)
Not surprisingly, Richmond captures the largest share of
regional employment in state government, corporate
headquarters, and private educational services. Other
sectors that account for over one-quarter of the region's
employment include federal government, healthcare,
professional services, and information & media.
This figure also shows the city has a disproportionately
low share of the region's retail and food services
employment. While these sectors may not necessarily
provide high-paying jobs, they can generate high levels
of pedestrian activity, create sales tax revenues, offer
employment opportunities to younger and less well
educated residents, and enhance a city's overall quality
of life.
Federal government (civilian & military)
Healthcare & social services
Professional & technical services
Information & media
TOTAL JOBS (all industries)
Administrative services
Real estate
Manufacturing
Finance & insurance
Accommodation & food services
Wholesale trade
Local government (including public education)
Transportation & warehousing
Construction
Retail trade
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI,
Moody's Analytics
Page 20
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
UNDERSTANDING LQs
A location quotient (LQ) is calculated as a local industry’s share of total local employment
divided by the same industry’s share of employment at the national level:
Local jobs in industry/
Total local jobs
LQ = —————————————
U.S. jobs in industry/
Total U.S. jobs
Retail trade
Manufacturing
Transportation & warehousing
Local gov't (incl public educ)
Accommodation & food services
Wholesale trade
Real estate
Construction
Information & media
Administrative services
Finance & insurance
Education (private)
Professional services
Healthcare
5.00
Federal gov't
City
MSA
Commonwealth
State gov't
It is not unusual for the central city of a metropolitan area to have low
LQs for land-intensive sectors such as manufacturing and distribution.
Richmond's below-average scores for these sectors fall in line with
expectations. However, consistent with the previous figure, the city the
below-average LQs for both retail trade and food services. Except for
cities heavily dependent on tourism, LQs in these consumer-oriented
sectors should rarely deviate outside the average range of 0.75 to
1.25. In fact, a normal LQ for retail trade rarely strays much from a
dead even score of 1.00. Richmond's below-average LQs for retail
trade and food services imply that a large portion of the region's
consumer activities have "leaked" to the suburbs. We see
substantial capacity here for the city to capture a larger portion of
the region's consumer traffic.
Figure 12: Location Quotients by Industry Sector (as of 2008)
Corporate HQs
Location quotients (LQs) indicate strengths and weaknesses in the
employment base relative to the U.S. overall. Theoretically, higher LQs
imply specialization in a local economy and are often viewed by
economists as export industries. In other words, the surplus goods and
services produced by high LQ sectors are greater than the capacity for
consumption at the local economy; therefore, they are assumed to be
exported outside the region. All state capitals score high location
quotients (LQs) for state government jobs, but Richmond's LQ for
corporate headquarters is even higher. The city's success as a
corporate command-and-control center is notable.
5.00
4.00
4.00
3.00
3.00
2.00
2.00
above
average
avg
above
average
1.25
1.00
0.75
1.25
1.00
0.75
below
average
avg
below
average
0.00
0.00
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census
Bureau, EMSI, Moody's Analytics
If the local industry and national industry are perfectly proportional, the LQ will be 1.00. If an
industry is heavily concentrated at the local level (e.g., automotive industry in Detroit,), then
the location quotient will be higher than 1.00. Conversely, if the industry is sparsely
concentrated at the local level (e.g., farming in New York City), the LQ will be lower than
1.00.
Page 21
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Retail > Retail employment data suggest the possibility of the city of
Richmond being under-served. Reviewing Moody's Analytics estimates
of retail sales by consumer format in the city provides a better
understanding of the city's specific strengths and weaknesses in the
retail sector. For central cities, TIP is less concerned about low sales
levels for big box stores (electronics, furniture, building materials, etc.),
which gravitate to suburban power centers. Instead, we look more
toward the retail formats linked to quality of place – restaurants & bars,
grocery & food stores, and miscellaneous shops. Richmond's share of
regional sales for restaurants & bars and for miscellaneous shops is
acceptable, though not exceptional. The share of regional sales for
grocery and food stores, however, is lower than expected. Richmond
accounts for just 17 percent of the $2.2 billion in regional food and
beverage store sales. This share is roughly in line with the city's share of
the MSA population, but it is far below the city’s 26 percent share of the
region's jobs.
Note that the retail sales charts below cover the 10-year period from 19982008. The beginning of this period was marked by unusually low oil prices
and correspondingly strong SUV sales, but endeding with a spike in oil prices
and a collapse of motor vehicle purchases. Because of the period analyzed,
we caution readers that the levels and trends shown here for gasoline
stations and motor vehicle sales may be slightly distorted.
Figure 13: Retail Sales Patterns in the City and MSA, 1998-2008
Retail Sales Category
Gasoline stations
Motor vehicle & parts dealers
General merchandise stores
Food & beverage stores
Food services and drinking places
Building material & garden equipment & supplies dealers
Health & personal care stores
Clothing & clothing accessories stores
Nonstore retailers
Miscellaneous store retailers
Sporting goods; hobby; book; & music stores
Furniture & home furnishings stores
Electronics & appliance stores
Total
Retail Sales in MSA ($bil)
$2.9
$2.8
$2.5
$2.2
$1.7
$1.2
$1.0
$0.9
$0.8
$0.4
$0.4
$0.4
$0.4
$17.7
City of Richmond % of MSA
18%
19%
24%
17%
26%
23%
12%
32%
12%
23%
20%
13%
15%
20%
10-Year MSA CAGR%
+11.7%
+1.5%
+5.9%
+3.7%
+6.2%
+3.8%
+5.1%
+4.6%
+3.5%
+2.6%
+4.3%
+2.8%
+4.0%
+4.8%
SOURCE: U.S. Census Bureau, EMSI, Moody's Analytics
Page 22
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Commuting Patterns >To shed further
light on Richmond’s economic ties to the
surrounding region, TIP examined commuter
linkages with Richmond's primary surrounding
counties of Henrico, Chesterfield, and
Hanover.
Analysis
of
city-suburban
commuting patterns typically reveals the same
trend everywhere: more commuting across
the board, with especially high inbound
increases from outlying exurban areas.
An examination of the data for Richmond
shows both outbound and inbound commuting
rising overall, but outbound flows rising much
faster than inbound. Moreover, inbound
commuting from Chesterfield and Hanover
Counties has leveled off in recent years, while
inbound flows from Henrico have fallen
steadily.
Additionally, in 1970 there were 1.6 jobs in the
City of Richmond for every employed resident
in the city. In the latest year available (2006),
that ratio is exactly the same at 1.6; however,
one key thing has changed. Richmond
residents are not the ones staffing the city's
jobs today as they were in 1970. Back in
1970, 52 percent of Richmond residents who
held a job never left the city to get to work.
Today, that ratio has been cut in half to 26
percent. In other words, nearly threequarters of the city's employed residents
leave the city to get to their jobs.
Figure 14: Commuting Patterns & Transportation Linkages in Richmond
INBOUND
Total jobs in Richmond
1970
1980
1990
2000
2006
148,426
196,291
174,454
157,003
159,426
Live & work in City of Richmond (i.e., no commute)
77,486
78,783
63,576
51,534
41,025
Total inbound commuters
70,940
117,508
110,878
105,469
118,401
from Henrico
42,299
54,254
45,136
39,759
33,904
from Chesterfield
14,245
33,753
37,824
34,899
35,346
from Hanover
7,015
10,474
8,977
9,432
9,973
from everywhere else
7,381
19,027
18,941
21,379
39,178
1970
1980
1990
2000
2006
Total employed residents of Richmond
93,261
98,017
93,922
88,898
100,148
Live & work in City of Richmond
77,486
78,783
63,576
51,534
41,025
Total outbound commuters
GENERAL TREND
Long term
Since 2000
▼
▼
▲
▼
▲
◄►
▲
◄►
▼
▲
▼
◄►
◄►
▲
OUTBOUND
15,775
19,234
30,346
37,364
59,123
to Henrico
8,610
10,934
17,034
20,956
24,303
to Chesterfield
5,663
4,690
8,696
9,449
11,685
465
1,605
1,765
2,768
3,675
1,037
2,005
2,851
4,191
19,460
1970
1980
1990
2000
2006
to Hanover
to all other locations
GENERAL TREND
L/T
Since 2000
▲
▼
▲
▲
▲
▲
▲
▲
▼
▲
▲
▲
▲
▲
NET COMMUTER FLOWS
Total net commuter flows into Richmond
net balance with Henrico
+55,165 +98,274 +80,532 +68,105 +59,278
+33,689 +43,320 +28,102 +18,803
+9,601
net balance with Chesterfield
+8,582 +29,063 +29,128 +25,450 +23,661
net balance with Hanover
+6,550
net balance with everywhere else
+6,344 +17,022 +16,090 +17,188 +19,718
+8,869
+7,212
+6,664
+6,298
GENERAL TREND
L/T
Since 2000
▼
▼
◄►
◄►
▲
▼
▼
▼
◄►
▲
SOURCE: U.S. Census Bureau (Journey-to-Work and Local Employment Dynamics Origin-Destination Database), Moody's Analytics
Page 23
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
International Linkages > TIP also reviewed the subsidiary
structures of all the region's publicly traded companies. Based on recent
public filings, we identified at least 11 companies with international
operations.
We found that the international linkages of Richmond's companies offer
both depth and geographic scope. Our review is summarized as follows:
• Europe – seven companies with a total of 41 subsidiaries across
16 different countries with the most subsidiaries (five) in the
United Kingdom.
• Americas – 10 companies with a total of 37 subsidiaries across
19 different countries and territories with the most subsidiaries
(five each) in Brazil and Canada.
• Asia Pacific – six companies with a total of 26 subsidiaries
across 12 different countries with the most subsidiaries (four) in
China.
• Africa – five companies with a total of 14 subsidiaries across 11
different countries with the most subsidiaries (three) in South
Africa.
Figure 15: International Operations of Public Companies
Headquartered in the Richmond MSA
City of
Richmond
Suburbs
Brink's
Canal
(Chesapeake)
Carmax
Genworth
Financial"
Newmarket
Tredegar
Universal
Markel
Meadwestvaco*
Owens & Minor
Southpeak
Interactive
Europe
Americas
Africa
16
Asia
Pacific
11
4
Middle
East
5
14
8
1
2
2
0
0
4
4
3
7
0
0
0
1
1
4
3
1
7
1
1
2
0
0
4
4
3
2
0
0
0
0
0
1
1
0
6
0
0
0
0
0
1
0
0
0
0
0
0
0
41
37
26
14
6
SOURCE: Thomson Reuters; TIP Strategies, Inc.
*NOTE: Meadwestvaco will relocate in late 2009 from temporary offices in Glen Allen to a
permanent headquarters building under construction in downtown Richmond
• Mideast – two companies with a total of six subsidiaries across
five different countries with the most subsidiaries (two) in Turkey
(which we have grouped with the Middle East even though some
may consider Turkey a better fit with Europe).
The full table can be located in the appendix.
Page 24
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Market Capitalization > TIP Strategies was tasked with looking at
broad geographic and industry linkages between the City of Richmond,
its neighboring counties, and the world at large.
Looking at employment and demographic data is always helpful, but to
better understand the strengths and weaknesses of regional industries it
is sometimes best to look anecdotally at the dynamics of the region's
individual companies. We used a ThomsonReuters database to
assemble a dataset of every company in the Richmond metropolitan
area that was publicly traded during the 10 years from 1998 to 2008. As
of year-end 2008, the region had 30 companies with tradable stocks. A
total of 54 companies in the region have been traded at some point in the
past 10 years.
As of year-end 2008, companies that maintained a Richmond head office
address made up 90 percent of the aggregate market value of the
metropolitan region's 30 listed companies. The city's share of the
region's market capitalization has ranged from 83 percent to 94 percent
over the past 10 years. This is an extraordinarily high share of the overall
market cap and it provides anecdotal evidence to support the city's high
employment location quotient for corporate headquarters (see Figure
12). It should be noted that the vast majority of the region’s market
capitalization is concentrated in two companies – Altria Group and
Dominion Resources. In 2008, their combined market cap totaled $51.94
billion, representing over three-quarters of the MSA’s total market
capitalization. Figure 16 below displays summary market capitalization
data for the city and the MSA. The full table can be located in the
appendix.
Figure 16: Market Capitalization of Public Companies Headquartered in Richmond and Surrounding Areas
City
1998
1999
2000
2001
2002
2003
2004
2005
Richmond
$28.07
$29.49
$29.18
$30.79
$27.38
$36.30
$56.19
$63.35
Suburbs
$4.21
$1.97
$3.22
$4.00
$4.83
$5.91
$8.62
$7.74
MSA
$32.28
$31.46
$32.40
$34.79
$32.21
$42.22
$64.80
$71.09
Richmond share of MSA
87%
94%
90%
88%
85%
86%
87%
89%
SOURCE: Thomson Reuters; TIP Strategies, Inc.
2006
$70.45
$14.76
$85.20
83%
2007
$57.72
$14.87
$72.59
80%
2008
$60.19
$7.05
$67.23
90%
Page 25
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
REGIONAL LABOR MARKET
Age Structure
Figure 17: Annual Growth Rate of the Working Age Population (age 20-64), 1970-2030
City of Richmond
Richmond MSA
Virginia
US Average
Annual
+4%
+4% Annual
Pct. Chg.
+3%
+3% Pct. Chg.
+2% in the Size
+1% of the
+0% Working
-1% Age
-2% Population
20
30
20
10
19
90
20
30
19
70
20
10
19
90
-3% (Age 20-64)
20
30
19
70
19
90
20
30
19
70
20
10
19
90
19
70
in the Size +2%
The aging and eventual
of the +1%
retirement
of
Baby
Working
+0%
Boomers (i.e., those born
Age
-1%
between 1946 and 1964)
Population
-2%
over the next couple of
(Age 20-64)
-3%
decades will cause the
working-age population of
the U.S. to grow at a
slower rate. This trend SOURCE: U.S. Census Bureau (history) Moody's Analytics (projections)
will play itself out across
the country, including in Virginia and in the Richmond area.
20
10
In recent decades, the
growth
rate
of
the
working-age population in
Richmond has lagged the
MSA, the commonwealth,
and the nation.
More positively, the city of Richmond's demographic situation is expected
to align much more closely with rest of the MSA. Moody's Analytics
forecasts the city's working-age population to grow at a similar rate to the
larger MSA in the years ahead. While the MSA overall may grow at a
slower pace than it has in recent years, Richmond can expect to grow at
a faster, steadier pace than it has experienced in some time.
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Educational Attainment
Nearly one-third of all City of Richmond residents age 25 or older have a
bachelor's degree or higher. This is notably higher than the U.S. average
and is consistent with the MSA and commonwealth averages. Retaining
graduates of VCU, the University of Richmond, and Virginia Union
University and attracting new educated residents is critical to Richmond’s
long term economic vitality.
The city of Richmond also has a disproportionately large share of
residents who lack high school equivalency – 20 percent of
Richmond residents versus 15 percent nationwide. Improving this
troubling indicator is equally as important to the city’s economic
future as sustaining its higher education base.
Figure 18: Highest Educational Attainment for the Population Age 25 or Older
City of Richmond
20%
32%
48%
Richmond MSA
15%
31%
54%
Virginia
14%
52%
34%
US Average
15%
28%
57%
bachelor's degree or higher
high school diploma or GED, but less than a 4-year degree
no high school diploma or GED
SOURCE: U.S. Census Bureau's American Community Survey; Moody's Analytics
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Income
Median household incomes in Virginia and in the Richmond MSA have
historically run higher than the national level. Although the Richmond
MSA has lost ground in the past few years, the region overall still enjoys
a household income level that is at least 5 percent over the U.S. median.
Residents in the city of Richmond have historically earned less than their
suburban neighbors. In the early 1980s, the city's households earned
almost 90 percent of the U.S. median; however, over the past 25 years,
this share has fallen to less than 70 percent of the national median.
Some of this widening disparity can be explained by demographics. A
single-person household in the central city earning $75,000 a year would
still have a lower household income, for example, than a two-paycheck
family in the suburbs with each worker earning $50,000.
This can explain part of the income gap, but it doesn't explain
everything. As we know from the previous set of charts on educational
attainment (see Figure 18), the city has a relatively large share of
residents who lack high school equivalency. And as our historical and
forecast data show (see Appendix A), the city's unemployment rate
tends to run a couple of points higher than the MSA overall.
Figure 19: Median Household Income Relative to the US (US = 100%)
Commonwealth of Virginia
Richmond MSA
City of Richmond
130%
125%
120%
115%
110%
105%
100%
95%
90%
85%
80%
75%
70%
65%
1980
1985
1990
1995
2000
2005
SOURCE: U.S. Census Bureau's Current Population Survey (CPS); Moody's Analytics
Page 28
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
employment opportunities for many residents of Richmond, their low
education/training requirements should cause concern with respect to
lower income and wage levels.
Occupational Analysis
TIP prepared an employment forecast by occupation for the 2009-2015
timeframe for Richmond and the MSA. The full tables for each region are
located in Appendix A5 and A6. Figure 20 below shows the anticipated
number of jobs (gained or lost) for each industry sector by
training/education level for Richmond. The assumptions for the
occupational forecast are the same as for the industry sector forecast
(see Figure 8). TIP uses the 2009 occupational-industry matrix to
translate industry sector employment first to occupational estimates and
then to training/skill level estimates.
The forecast anticipates 14,677 net new jobs created in Richmond over
the six-year period; over half of which (8,346) will require no formal
training. Most of the jobs requiring low levels of training will be created in
healthcare & social services, administrative services, and
accommodation & food services. While these new jobs present needed
Real Estate
Administrative
Services
Educational
Services (private)
Healthcare & Social
Services
Accomodation &
Food Services
+30
+179
+183
+149
+161
+814
+113
+850
+745
+469
+284
+4,586 Least training
+79
+38
+186
+133
+233
+232
+359
+37
+456
+26
+521
+195
+2,868
Long-term on-the-job training
Miscellaneous &
Unclassified*
Finance &
Insurance
+119
+49
Government
Information &
Media
+350
+125
Corporate HQs &
Regional Offices
Transportation &
Warehousing
+103
-65
Professional
Services
Retail
-37
+264
Manufacturing
+74
Moderate-term on-the-job training
CITY OF RICHMOND
Construction
Wholesale
Figure 20: Forecast Net Change in Employment by Training Level, 2009-2015
All Industry Sectors
Readers should note that the forecast for occupational change is biased
toward lower-skilled jobs because it assumes that future job growth patterns
in each industry sector will parallel present occupational structures. Logically,
we know this is not true. The job market is constantly changing and
productivity gains push employment toward higher skilled positions as
industries mature. Readers should keep this bias in mind as they interpret the
forecast.
BY TRAINING/EDUCATIONAL LEVEL
Least training Short-term on-the-job training
+232
-19
+6
+12
+8
+21
+33
+6
+19
+16
+31
+8
+15
+73
+348
+82
+893
Work experience in a related field
+68
-12
+24
+48
+17
+9
+53
+38
+42
+91
+71
+13
+75
+84
+216
+59
+896
Postsecondary vocational award
+1,018
+11
-2
+10
+14
+9
+4
+2
+44
+67
+13
+53
+7
+595
+4
+122
+65
Associate's degree
+1
-4
+5
+1
+1
+7
+11
+3
+116
+40
+37
+9
+615
+0
+119
+12
+974
Bachelor's degree
+31
-14
+19
+4
+9
+41
+250
+49
+425
+289
+87
+189
+194
+3
+384
+55
+2,016
Degree plus work experience
+16
-6
+17
+10
+4
+18
+69
+17
+121
+171
+45
+27
+92
+8
+130
+31
+769
+1
-0
+0
+1
+1
+1
+3
+1
+18
+10
+3
+35
+143
+1
+81
+6
+303
+1
+1
-0
-0
+0
+0
+1
+6
+1
+1
+1
+1
+1
+3
+1
+1
+13
+70
+3
+10
+1
+3
+28
+1
+13
+142
+1
+1
+10
+43
+1
+1
+73
+282 Most training
+570
-121
+234
+411
+207
+89
+398
+322
+401
+409 +1,204
+158
+1,321
+80
+50
-18
-21
+38
+37
+63
+23
+27
+15
+19
+62
+67
+325
+85
+68
+225
+647
+144
+482
+161
+139
+29
+280
+1,285
+584
+700
-161
+309
+497
+249
+170
+790
+474 +1,273 +1,035 +1,504
+466
+3,190
Master's degree
Doctoral degree
Most training First professional degree
No formal training
SUMMARY
Vocational preparation or prior experience
4-year degree or higher
TOTAL NET JOB CHANGE 2009-2015
+845 +1,338
+88
+12
+457
+648
+945 +2,443
+561
+8,346
+136
+94
+2,887
+3,444
SUMMARY
+791 +14,677
SOURCE: TIP Strategies; U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Census Bureau; EMSI; Moody's Analytics
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure 21 uses national data to illustrate
the important link between education &
training and earnings for Richmond.
Earnings rise as the level of training or
education increases. The U.S. Bureau of
Labor Statistics defines, categorizes, and
collects data for more than 750
standardized occupations.
By plotting median earnings for the U.S.
for each of these occupations against the
minimal educational requirement for each,
it is possible to show graphically just how
strong this correlation is between
education and earnings.
Figure 21: The Link between Skills, Earnings, & Educational Preparation (A)
All 753 occupations tracked by the BLS have been cross-referenced by median hourly
U.S. earnings and minimal training/skill level
$0
$5
$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70
First professional degree
Doctoral degree
Master's degree
TRENDLINE
4-year degree + related experience
Bachelor's degree
Associate's degree
Postsecondary vocational training
Work experience in a related field
Long-term on-the-job training
Moderate on-the-job training
Short-term on-the-job training
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure 22 streamlines the statistical
"noise" of 753 occupations shown in the
previous chart. Instead of showing the
median pay for each individual occupation,
this chart instead shows the median pay of
all occupations at each training and
educational level.
Figure 22: The Link between Skills, Earnings, & Educational Preparation (B)
Median hourly earnings by minimal training/skill level in the U.S.
$0
$5
$10 $15 $20 $25 $30 $35 $40 $45 $50 $55 $60 $65 $70
First professional degree
Career Path 3
Doctoral degree
College beyond a
4-year degree
Master's degree
4-year degree + related experience
Bachelor's degree
Career Path 2
Some college up to
4-year degree
Associate's degree
Postsecondary vocational training
Work experience in a related field
Long-term on-the-job training
Moderate on-the-job training
Career Path 1
No college
Short-term on-the-job training
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Analysis of Local Economy
All occupational LQs for the MSA fall within the average range of
scores.
above
average
avg
below
average
Sales & related
Production
Food preparation & serving
Farming, fishing, & forestry
Transportation & material moving
Installation, maintenance, & repair
Construction & extraction
Property maintenance
Arts, design, & entertainment
Personal care & service
Office & administrative support
Architecture & engineering
Education, training, & library
Healthcare (technical)
Management
Healthcare (support)
Computer & mathematical science
Life, physical, & social sciences
Business & financial operations
Protective services
The three occupational groups with below average LQs for the city are
production, food preparation & serving, and sales. Note that the LQ for
sales occupations falls below the 0.75 outer limit of average scores.
These scores mirror the industry LQs displayed in Figure 12 and
reinforce the city’s relative weakness in retail, food services, and
manufacturing.
Legal
Figure 23: Location Quotients by Occupational Group (as of 2008)
Community & social services
Charting location quotients by occupational group reinforces trends
that have previously been documented. The city of Richmond has high
LQs for government oriented occupations (protective & social services)
as well as high-skill and office-using occupations (legal, finance,
sciences, & computers).
2.00
2.00
1.75
1.75
1.50
1.50
1.25
1.25
1.00
1.00
0.75
0.75
0.50
0.50
0.25
0.00
City
MSA
0.25
above
average
avg
below
average
0.00
SOURCE: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census
Bureau, EMSI, Moody's Analytics
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Comprehensive Economic Development Strategy – Analysis of Local Economy
INFRASTRUCTURE
TIP was asked to provide a basic evaluation of Richmond’s physical
capacity in relation to its current and future economic development
needs. The section below reviews the physical economic development
infrastructure assets of the city, including energy, water, transportation,
public transit, and telecommunications.
Port
The Port of Richmond, an inland deepwater terminal, provides the city
with container and general cargo facility for intra-coastal and transAtlantic shipping. The port is located three miles south of downtown
Richmond along the James River. It is situated on 121 acres adjacent to
I-95 and is connected to the CSX main north-south line by an industrial
spur line known as the “Deepwater Terminal Railroad.” The port is
owned by the City of Richmond, managed by the Port of Richmond
Commission, and operated by Federal Marine Terminals Inc., a private
company.
Despite its strategic significance to the regional economy, the Port of
Richmond faces significant challenges. In 2009, Independent Container
Line, the port’s anchor tenant, began rerouting its marine cargo service
from Richmond to Wilmington, NC. Before its departure, ICL had shipped
its products through the Port of Richmond for 24 years and accounted for
75 percent of the port’s business. ICL shipped between 5,700 and 6,000
tons of cargo weekly through the port, including steel, rubber, specialty
chemicals, household products, and some wines and spirits.
ICL cited the need to “increase the size of its footprint” as the primary
reason for the move to Wilmington. Presently, the James River’s narrow
25-foot channel, with a maximum 22-foot ship’s draft, limits the port’s
capacity handle larger ocean-going vessels. In addition, the 121-acre site
is landlocked by the river to the east and I-95 to the west. Expanding the
site will require the acquisition of surrounding properties.
Increasing the economic competitiveness of the Port of Richmond will
require significant capital investment by the city, state, and federal
government. For the port to handle larger vessels, the river must be
deepened beyond its present 25 feet. There have been discussions with
the Army Corp of Engineers and the U.S. Congress has approved the
project, but as of yet no funding has been allocated. The port would also
benefit from a rail loop that would extend the current spur to the water.
To get oversized cargo into and out of the port by land, adjacent road
improvements will need to be made. The acquisition of surrounding land
would also create the potential for industrial development and the
development of an intermodal facility.
It is estimated that the Port of Richmond needs approximately $20 million
in new capital investment to become economically competitive. Given the
overall decline of the manufacturing sector and the presence of other
port alternatives in the region, it is uncertain if such investments would
dramatically enhance the economic competitiveness of Richmond.
Transportation
Highways > Richmond is intersected by three interstate highways (95,
85, and 64), providing the city access to major markets in the northeast,
southeast, and midwest. Richmond maintains about 827 centerline miles
of roadway (i.e., 1,850 lane miles). Compared to many U.S. metropolitan
areas, Richmond enjoys a favorable 24 minute average commute time.
There are several recent, current, and planned major Virginia
Department of Transportation (VDOT) road construction projects
affecting Richmond. Recently completed projects include the Benjamin
Harrison Bridge rehabilitation and replacement of the Route 5 Bridge.
Ongoing projects include pavement resurfacing and repairs to I-295,
improvements between I-95 interchange and Parham Road, and a new
link between Route 895 and the Richmond International Airport.
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New road projects beginning in 2010 include the widening of Jefferson
Davis Highway from Chesterman Avenue to Decatur Street. The project
will widen the existing highway to provide standard 12-foot wide lanes
and dedicate turning lanes. In addition, the reconstruction of the
Huguenot Bridge will involve the complete replacement of the existing
structure with a new bridge in approximately the same location. In 2010,
VDOT will begin rehabilitating 11 bridges along the I-95 corridor in
Richmond and Henrico County.
At the proposal stage, VDOT is planning to widen I-64 in the east end of
Richmond to reduce congestion and provide better traffic flow. The total
cost for this project would be at least $325 million, with the majority
federally funded.
Rail > The Richmond area has a considerable amount of rail
infrastructure, including a city-owned rail spur. CSX and Norfolk
Southern provide rail access to Richmond. Together, they account for
the majority of freight movement in the region. CSX facilities include the
Acca Yard, the Fulton Yard, and the Collier Yard. CSX also owns rail
spurs at the Richmond International Airport and the Port of Richmond.
Norfolk Southern maintains the Washington Street Yard and the Wagner
Yard.
However, the rail infrastructure does not connect well with the Port of
Richmond, leaving the city with no intermodal cargo facility that
incorporates rail, truck, and port traffic. As mentioned previously, the
construction of a loop track running the rail to the water has been
identified as a major need at the Port of Richmond.
The City of Richmond also is the southern terminus of the North East
Corridor Amtrak line. In December 2003, the renovated Main Street
Station began providing passenger rail service to New York, Boston, and
other locales. The new Main Street Station provides downtown
Richmond with a multimodal transportation node that incorporates
commuter rail, auto, and bus services. In addition, planning is underway
to construct high-speed rail service between Richmond and Washington,
DC.
Air Service > The city of Richmond and the surrounding region are
well served by modern passenger and air cargo facilities. Richmond
International Airport (RIC) is the region’s only provider of scheduled
commercial airline service and major air cargo operations. Located
seven miles from the Richmond central business district, RIC offers
travelers convenient access to all areas of the city. RIC is presently
served by nine air carriers offering approximately 200 daily nonstop
flights 22 major domestic and international destinations. Annually, RIC
serves more than 3.5 million travelers and handles approximately 115
million pounds of cargo. The airport’s cargo operations utilize more than
100,000 square feet of warehouse/office space and 1,000,000 square
feet of ramp space.
In recent years, RIC has undergone significant capital improvements. A
new terminal featuring separate arrival and departure levels and a design
capacity of over six million enplaned passengers per year was dedicated
in 2007. Additional capital improvement projects completed include the
construction of a new two-level terminal curbside roadway, the addition
of 10 new gates, the renovation of existing terminal facilities, a new FAA
control tower, a new central utility plant, expanded security facilities, and
new garage parking facilities. Airport Road has also been expanded to a
four-lane divided roadway on airport property.
Public Transit > Greater Richmond Public Transit (GRTC) provides
bus transportation, including express and regular routes, as well as van
service for special populations. GRTC is a non-profit transit organization
jointly owned by the City of Richmond and Chesterfield County. GRTC
operates 172 transit vehicles (buses and vans) and supplies fixed route
service to Richmond, Petersburg, and Henrico County. Additionally,
GRTC operates five over-the-road coach buses for express commuter
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Comprehensive Economic Development Strategy – Analysis of Local Economy
routes, including the Richmond-Fredericksburg Express. GRTC also
partners with VCU to provide mobility services to students, staff, and
faculty around the Richmond region.
lines to meet increasing demand for electricity. In fact, Dominion Virginia
Power has committed to spending $4 billion over three years to generate
additional power and improve service reliability.
The main economic development implications of public transit in
Richmond involve getting residents to their place of work. According to
GRTC, of the roughly 26,000 employers in the Richmond region, only
12,000 are accessible to public transportation. Many Richmond residents
who lack automobiles find have difficulty in reaching hourly retail and
service jobs in areas of the region not served by GRTC (e.g., Richmond
International Airport).
Natural Gas > The Richmond Department of Public Utilities (DPU)
Telecommunications
Richmond enjoys a robust telecommunications infrastructure. The city
and surrounding area host an extensive fiber optic network with digital
switching capability and a Synchronous Optical Network (SONET) self
healing fiber optic rings. These fiber optic and digital switching assets
insure uninterrupted service for regional customers. Special Access
Services (DS1, DS3, OC-12, and OC-48) as well as ISDN are available
in Richmond.
provides natural gas to customers within Richmond, Henrico County, and
northern Chesterfield County. DPU is the eighth largest (out of 94)
municipally-owned natural gas utility in the United States. DPU maintains
1,700 miles of gas mains and six gate stations. It purchases gas from
five major suppliers transported by three pipeline systems. After peaking
in 2008 due to the worldwide spike in energy prices, the public utilities
department lowered its rate by 17 percent in February 2009.
Water and Sewer > The Richmond Department of Public Utilities
provides is the city’s water and sewer services to Richmond, Henrico,
Chesterfield, and Hanover counties. Richmond’s water treatment plant
can treat up to 132 million gallons per day from the James River, making
the City one of the largest water producers in the state. DPU recently
expanded the plant’s capacity through a $70 million plant improvement
project. Excess water and wastewater capacity is available for new and
expanding companies.
Utilities
Electricity > Dominion Virginia Power, the state’s largest electric
utility, is the primary electrical power provider to the Richmond metro
region. Other electrical providers in the area include Southside Electric
Cooperative and Rappahannock Electric. In 2008, Dominion Virginia
Power had a reliability rate of 99.98 percent (excluding storms). As of
Dec. 1, 2008, Dominion’s average industrial rate was 6.68 cents/kWh
and average commercial rate was 8.17 cents/KwH. However, in 2008
Dominion filed a requested rate increase with the State Corporation
Commission, the company’s first in 18 years. Dominion is seeking a rate
increase totaling $250 million. The stated reason for the rate increase is
to fund the construction of new power plants, substations, and power
Figure 24: Richmond Commercial and Industrial Water and Wastewater Rates
Monthly Service Charge
Water
Wastewater
Volume Charge (Commercial)
1-100 Ccf
$2.164
$3.315
101-2,000 Ccf
$1.702
$3.315
Over 2,000 Ccf
$1.604
$3.315
Volume Charge (Industrial)
1-100 Ccf
$2.573
$3.393
101-2,000 Ccf
$2.024
$3.393
Over 2,000 Ccf
$1.906
$3.393
SOURCE: Richmond Department of Public Utilities
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure 25: Vacant Parcels in the Jefferson Davis
Highway Corridor – by Type
ECONOMIC OPPORTUNITY SECTORS
The section below addresses areas of Richmond that offer potential for
further economic development. Particular emphasis will be given to
opportunities and obstacles for development/redevelopment of industrial
and commercial sites in the Jefferson Davis Highway Corridor.
Additionally, the analysis will highlight redevelopment opportunities and
revitalization initiatives in the Nine Mile Road Corridor.
Jefferson Davis Highway Corridor
Located in the Southside of Richmond, the Jefferson Davis Highway
Corridor is an aging industrial highway that is currently in a state of
economic and social decline. Before the construction of Interstate 95,
Jefferson Davis Highway was the principal connecter between Richmond
and Petersburg. The corridor is geographically characterized as the area
between Hull Street to the north, the city limits boundary to the south,
Commerce Road and the rail line to the east, and the railroad right-ofway to the west.
Today, the corridor is populated with a mix of residential, commercial,
and industrial properties, most suffering from some level of deterioration
and/or vacancy. As illustrated in Figure 25, the area is populated with
numerous vacant properties. Indeed, City of Richmond has identified 925
vacant properties within the corridor. Over 700 of the properties are
vacant lots that have either never been developed or the original
structure no longer exists. Additionally, 24 of the properties host vacant
structures or buildings.
Figure 26 on the following page maps the vacant properties by land use.
According to the City, 157 parcels are commercial and 181 are industrial
in nature. Over 700 of the properties are less than one-quarter acre in
size. There are 13 larger industrial that 5 acres or greater.
This map produced as part of the Richmond Green
Infrastructure Assessment by E² Inc. Project partners include
the City of Richmond, Richmond Regional Planning District
Commission, Virginia Department of Forestry, E² Inc. and the
Green Infrastructure Center. The project sponsor is Altria.
Many of these parcels are considered Brownfield redevelopment sites.
Two of the larger industrial sites are the 18-acre Madison Arms property
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Comprehensive Economic Development Strategy – Analysis of Local Economy
and the 15-acre Model Tobacco property. Due to their size, location, and
current industrial zoning designation, both sites represent significant
redevelopment opportunities. For industrial purposes, they benefit from
proximity to rail lines Interstate 95, the Port of Richmond, and the
Richmond International Airport; existing industrial zoning.
Figure 26: Vacant Parcels in the Jefferson Davis
Highway Corridor – by Land Use
However, the substantial environmental remediation costs as well as the
overall economic and physical deterioration of the surrounding area pose
considerable barriers to private redevelopment of these and other sites in
the corridor. Moreover, the availability of large greenfield sites well suited
for industrial and commercial development in neighboring counties make
the corridor less competitive.
Overcoming these obstacles will require public participation in any
redevelopment efforts. The City has taken a first step by applying to the
US Environmental Protection Agency (EPA) for a Brownfields Area-Wide
Planning Pilot Program. The purpose of the program is to develop a
comprehensive revitalization strategy for the Jefferson Davis Highway
Corridor. Such a strategy will involve analysis and recommendations
regarding zoning, transportation, streetscapes, recreation space,
housing, infrastructure, and public services.
If the City’s grant application is successful and a plan is developed, TIP
recommends a feasibility analysis be conducted for assembly of
industrial and commercial properties in the corridor. The challenges to
industrial and commercial revitalization of the area through piecemeal
redevelopment projects are daunting. A strategy of assembling individual
properties by a public or non-profit entity for the purpose of creating a
single industrial, commercial, or mixed-use anchor development provides
perhaps the most realistic opportunity for extensive economic
revitalization of the corridor.
This map produced as part of the Richmond Green
Infrastructure Assessment by E² Inc. Project partners include
the City of Richmond, Richmond Regional Planning District
Commission, Virginia Department of Forestry, E² Inc. and the
Green Infrastructure Center. The project sponsor is Altria.
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Comprehensive Economic Development Strategy – Analysis of Local Economy
One possible approach to organizing such an initiative is to establish a
new independent Southside Redevelopment Commission charged with
planning, coordinating, and administering the project. Though
independent, a commission would work closely with both the City of
Richmond and the Industrial Development Authority to ensure the
project’s success. While the City and the IDA have responsibilities to the
larger community, the new redevelopment commission would be entirely
focused on the Southside redevelopment initiative. Beyond commercial
and industrial development, the redevelopment project may encompass
residential, retail, and open space development. More detailed strategies
regarding this approach will be provided Phase III.
Nine Mile Road Corridor
One of the most important gateways into Richmond from Henrico County
is the Nine Mile Road Corridor in the East End of Richmond. The primary
road artery of the area is the historic Nine Mile Road. During the Civil
War, Nine Mile Road served as a major artery during the Peninsula
Campaign. The East End also hosted General Robert E. Lee’s
headquarters during the Seven Days Battle of 1862. Today, the area is
characterized by low income neighborhoods and public housing
developments such as Creighton Court. Most of the corridor is zone for
single-family and multi-family residential use, limiting the potential for
large scale commercial development.
objective of serving as a transformational catalyst for the surrounding
area. A potential economic development use for the site is as a technical
education/workforce training center. Other preliminary concepts include a
data center, defense contractor complex, or mixed-use storage facility.
To guide the redevelopment of the East End and the Nine Mile Road
Corridor, the City of Richmond is partnering with Bon Secours Virginia
and the Richmond Redevelopment and Housing Authority to engage the
area in a public Charrette. The basis for the Charrette is a series of
public engagement meetings conducted between June 2-7 at various
locations in the East End. The meetings are designed to identify specific
landscaping and streetscape designs, housing initiatives, and business
opportunities, as well as policy and management recommendations for
the area’s revitalization.
Within the East End, however, are two significant economic development
assets. The first, Bon Secours Richmond Community Hospital, is located
in Church Hill. Opened in 1907, Richmond Community Hospital has long
served as a critical community asset for Richmond’s East End, providing
healthcare and employment opportunities for generations of area
residents.
The second asset is the Old Armstrong High School, a 150,000 square
foot facility situated on approximately 20 acres. Presently vacant surplus
property, the City is assessing possible reuses for the school with the
Page 38
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
TARGET INDUSTRY ANALYSIS
Strategic Analysis
The selection of target sectors is traditionally
bound to an assessment of only a few
determinant factors, such as access to an
available workforce, sites, and incentives. Our
target sector recommendations are not based
solely on these factors, but also on conversations
with business leaders to better understand
potential opportunities and challenges that might
not be identified from secondary data sources
alone. TIP also applies its understanding and
appreciation of broader socioeconomic trends
such as consumption patterns, emerging markets
and international trade, as well as demographic
shifts to better understand long-term recruitment
and development prospects within emerging
economic sectors. Finally, TIP takes into
consideration how the following targets fit within
the overall framework of the CEDS and how they
will affect Richmond’s economic development.
WEAKNESSES
STRENGTHS
global
national
state/region
Sluggish US
economy, very
slow job growth
Cost of
Limited
greenfield sites brownfield
remediation
Local universities
are prized
stationary assets &
economic engines
I-95 location between
DC & Research
Triangle, NC
Excellent target industry framework
from Greater Richmond Partnership
Skilled educated
labor force in MSA, to build upon
but....
local
…Sharp differences in educational
attainment, skills, & job
opportunities
Port will require substantial
investment.
Proximity to
DC
VCU technology
transfer &
commercialization
The adjacent figure presents an analysis of
Richmond’s economic development strengths,
weaknesses, opportunities, and threats within the
context of local, state/regional, national, and
global influences. The relative size of the bubbles
reflects its perceived level of importance.
Higher education and life sciences
institutions attracting bright
entrepreneurial talent from abroad
THREATS
OPPORTUNITIES
Page 39
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Initial list of potential target industries for investigation
To narrow the initial list of potential target industries, TIP began with the 10 sectors the Greater Richmond
Partnership is pursuing for the broader region. The goal is identify which of the 10 are most appropriate for recruiting
and locating in the city of Richmond. In addition, TIP proposes two other industries - retail and professional services be considered in the analysis.
strategic analysis
Industries from the Greater Richmond Partnership's target list:
1
Advanced manufacturing
2
Clean tech
3
Corporate headquarters
4
Creative & knowledge-based services
5
Finance & insurance
6
Food processing
7
Information & communication technologies
8
Life sciences
9
Logistics
10
R&D Centers
TIP Strategies also suggests considering the following:
11
Retail, especially healthy food options in under-served neighborhoods
12
Professional services, especially small & medium-sized enterprises
Page 40
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Advanced Manufacturing
Industry
Advanced manufacturing technologies, including computer-aided engineering, computer-integrated
manufacturing, robotics and automated materials handling, are applied across the manufacturing sector to
improve efficiency and productivity. Specific target industries within the Advanced Manufacturing cluster
include chemicals, packaging equipment and materials, defense and aerospace. (Source: GRP)
Companies in
the Richmond
MSA
DuPont (advanced fibers)
Honeywell (advanced fibers)
Alloy Polymers (plastics)
Flexicell (robotic packaging equipment)
Spec Ops Inc. (mobile emergency command centers)
(Source: GRP)
US job growth
2010-2020
NAICS code
-779,054
Note: Total forecast job losses in the US manufacturing sector as it transitions to high-productivity, "advanced" processes
31-33
For manufacturing to prosper in the US, productivity must increase, meaning all manufacturing processes
must become advanced, regardless of the product. "Advanced" manufacturing, therefore, is about process,
not product. It does not fit neatly in a product-based NAICS coding system.
Appropriate city
target?
Limited
The city's limited supply of greenfield sites may pose difficulties for many manufacturers which need plenty of
space for new development and future expansion. Existing brownfield sites can be expensive to redevelop,
especially if environmental remediation is required. The city may find it difficult to compete with Richmond's
suburban areas for these types of firms. That said, there may be limited opportunities for appropriate firms
whose spatial requirements are relatively small.
Page 41
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Clean Tech
Industry
Clean technologies span several industries. While there is not yet a single accepted definition for this rapidly
growing field, a recent study by the Pew Charitable Trusts identifies the clean energy economy as cutting
across the following five categories: clean energy, energy efficiency, environmentally friendly production,
conservation and pollution mitigation, and training and support. (Source: GRP)
Companies in
the Richmond
MSA
Osage Bio Energy (barley-based ethanol)
Ingenco, Inc. (methane gas from landfills)
Intrinergy (energy from waste products)
Alstom Power (turbines & generators)
Alfa Laval (heat exchangers)
(Source: GRP)
US job growth
2010-2020
+50,161
NAICS code
221 & 562
Appropriate city
target?
Limited
Again, the city's limited supply of greenfield sites may pose difficulties for some types of clean tech firms who
need plenty of space for new development and future expansion. The city may find it difficult to compete with
Richmond's suburban areas for these types of firms. That said, there may be limited opportunities for
appropriate firms whose spatial requirements are relatively small.
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Corporate HQs
Industry
Corporate and regional headquarters operations occur in all industry clusters and are a welcome addition to
any local economy. For many years, Greater Richmond has proven to be an attractive headquarters location
for both domestic and international firms. (Source: GRP)
Companies in
the Richmond
MSA
Altria Group
CarMax Inc.
Dominion Resources
Genworth Financial
Markel Corp.
Massey Energy
MeadWestvaco Corp.
Owens and Minor Inc.
Southern States Cooperative
The Brink’s Company
(Source: GRP)
US job growth
2010-2020
+68,184
NAICS code
55
Appropriate city
target?
Likely
Corporate headquarters have been a good fit for Richmond. The city's location and transportation
infrastructure support this target. The regional (MSA) labor force provides a wide range of talent from which
corporate employers can draw.
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Creative & Knowledge-based Services
Industry
Firms in the creative and knowledge-based services sector draw on the skills and expertise of their
employees. This cluster of firms includes legal, engineering and other professional services; custom computer
software and multimedia; specialized design services; and advertising. (Source: GRP)
Companies in
the Richmond
MSA
Timmons Group (engineering services)
Froehling & Robertson (engineering services)
Northrop Grumman (IT services)
AgilQuest (business hoteling software)
SyCom Technology (computer systems development)
Martin Agency (advertising)
(Source: GRP)
US job growth
2010-2020
+1,208,315
NAICS code
5413, 5414, 5415, & 5418
Appropriate city
target?
Likely
Creative and knowledge-based services have been a good fit for Richmond. The city's location and university
infrastructure support this target. The regional (MSA) labor force provides a wide range of talent from which
creative-oriented firms can draw.
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Finance & Insurance
Industry
The finance and insurance cluster comprises establishments engaged in banking, brokerage, and investment
banking, specialty finance and insurance. Greater Richmond is a proven and successful location for firms in
all of these fields. It is a regional banking center and home to the Fifth District Federal Reserve. (Source: GRP)
Companies in
the Richmond
MSA
Capital One (credit cards)
Genworth Financial (insurance)
Anthem (insurance)
Markel (insurance)
Anderson & Strudwick (brokerage & financial advisors)
US job growth
2010-2020
+1,492,389
NAICS code
52
Scott & Stringfellow (brokerage & financial advisors)
Davenport & Co. (brokerage & financial advisors)
Ewing Bemis (investment banking)
Matrix Capital Markets Group (investment banking)
(Source: GRP)
The dramatic projected increase in US jobs reflects (1) national population growth (local bank branches,
insurance agents, and investment advisors); and (2) a "bounce" in employment following an unusually harsh
downturn in this sector.
Appropriate city
target?
Possibly
The US financial services sector has suffered through a massive downturn. Widespread consolidation,
mergers, and acquisitions could follow as the sector recovers. In the past Greater Richmond has attracted
these types of firms and there may be opportunities again in the years ahead.
Page 45
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Food Processing
Industry
Food processing covers a large and growing range of products, processes and packaging options. Due to an
increased demand for healthy food in recent years, organic foods are growing in popularity. Interest has also
grown in international/ethnic foods and other specialty foods. Targets in this cluster include not only
production facilities but also food industry supply chain vendors and suppliers. (Source: GRP)
Companies in
the Richmond
MSA
Kraft (crackers and cookies)
Tyson Foods (poultry products)
Maruchan (noodle soups)
San J (soy sauce)
US job growth
2010-2020
+37,812
NAICS code
311 & 312
Appropriate city
target?
Limited
Fiorucci (Italian meat specialties)
Sauer’s (spices)
Sabra Dipping Company (hummus and dips)
(Source: GRP)
Again, the city's limited supply of greenfield sites may pose difficulties for some types of firms which need
plenty of space for new development and future expansion. The city may find it difficult to compete with
Richmond's suburban areas for these types of firms. That said, there may be limited opportunities for
appropriate firms whose spatial requirements are relatively small.
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Information & Communication Technologies
Industry
Information and communication technologies cluster are broad and diverse, encompassing the recording and
motion picture industries, telecommunications, traditional and Internet publishing, as well as data processing
and information services firms. Growth opportunities include cyber security and data centers, as well as
customer care and service centers needed to support the virtual world. (Source: GRP)
Companies in
the Richmond
MSA
Precision IR (webcasting & financial data)
Peak 10 (data center)
PLANIT Technology Group (IT consulting, security & disaster recovery)
Mondial Assistance (travel insurance support center)
(Source: GRP)
US job growth
2010-2020
+257,983
NAICS code
51
Appropriate city
target?
Likely
Information & communication technology is a broad target group. Urban areas often emerge with different
ICT specializations such photo-optics (Rochester, NY) or semiconductor manufacturing equipment (Austin,
TX). The Greater Richmond Partnership's definition is more service-oriented than manufacturing, and this
makes sense for Richmond. The current political economy and Richmond's proximity to DC both imply that
the city would be well served to focus specifically on security-related technologies.
Page 47
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Life Sciences
Industry
Life sciences encompass biotechnology, bioscience, pharmaceutical manufacturing and healthcare service
industries. The Virginia Biotechnology Research Park, a 34-acre site located in downtown Richmond adjacent
to the VCU Medical Center, is home to more than 55 companies, laboratories and research centers with 2,000
workers in 1.2 million square feet of space. (Source: GRP)
Companies in
the Richmond
MSA
Wyeth (R&D & production of over-the-counter drugs)
Boehringer-Ingelheim Chemicals (pharmaceutical chemicals)
Wako Chemicals (clinical diagnostic reagents)
Commonwealth Biotechnologies (contract R&D)
PPD (drug development)
(Source: GRP)
US job growth
2010-2020
+71,019
NAICS code
3254 & 3391
Appropriate city
target?
Likely
Richmond's medical and university infrastructure provide a good framework for life sciences companies to
grow. This is an emerging industry that will continue to grow and evolve in the years ahead.
Page 48
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Logistics
Industry
Logistics and supply chain establishments provide materials-handling and management, warehousing,
packing, and transportation services. Greater Richmond resources include a Federal Express regional hub
and a UPS district headquarters; rail services of CSX, Norfolk Southern and AMTRAK; and the U.S. Army
Logistics University at Fort Lee as well as Defense Supply Center Richmond. (Source: GRP)
Companies in
the Richmond
MSA
DSC Logistics
Jacobson Companies
Menlo Worldwide Logistics
CEVA Logistics
Richmond Cold Storage
Cockrell Distribution Systems
Riverside Logistics
Schenker Logistics
(Source: GRP)
US job growth
2010-2020
+570,243
NAICS code
484, 488, 492 & 493
Appropriate city
target?
Very unlikely
Again, the city's limited supply of greenfield sites may pose difficulties for logistics firms, which need plenty of
space for new development and future expansion. The city may find it difficult to compete with Richmond's
suburban areas for these types of firms.
Page 49
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - R&D
Industry
R&D centers can be internal corporate facilities, for-profit contract operations, or centers affiliated with a public
or non-profit institution such as a university, hospital, civilian government agency, or military/defense agency.
Companies in
the Richmond
MSA
Emerging Industries:
Aderis Pharmaceuticals Clinical (pharmaceuticals)
Flexicell, Inc. (robotic packaging equipment)
Insmed (recombinant protein drug development)
Jewett Automation (custom automation equipment)
Magellan Systems International (synthetic fibers)
US job growth
2010-2020
+163,210
NAICS code
5417
Appropriate city
target?
Likely
Traditional Industries:
Afton Chemical Corp. (lubricants & fuel additives)
Alstom (gas & steam turbines, generators & components)
Altria Group (new technologies & products)
du Pont (chemicals)
Infilco Degremont (water & wastewater technology)
Richmond's medical, university, and state government infrastructure provide a good framework for R&D
centers to grow. This sector will depend heavily on a talented regional workforce and may need to tap labor
resources from throughout the MSA.
Page 50
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
strategic analysis
Review of target industry options - Retail Food Stores
Industry
Central cities are frequently underserved by some types of consumer services, including grocery stores (in
general) and healthy food options (in particular).
Companies in
the Richmond
MSA
Food Lion
Ellwood Thompson's
Martin's Food Markets
Kroger
US job growth
2010-2020
+5,258
NAICS code
4451
Appropriate city
target?
Possibly
West End Supermarket
Wawa Food Markets
Short Stop Food Stores
Initial research by TIP strategies showed that the city's retail sector may be undersized relative to the suburbs.
This may be in part because city residents shop at regional malls, shopping centers, or auto rows outside the
city limits. Additionally, inner-city areas are often under-retailed on basic items like fresh produce. This may
or may not be the case in Richmond, but encouraging full-service supermarkets to reach out to any underserved inner-city areas is a worthy goal.
Page 51
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Review of target industry options - Professional Services
strategic analysis
Industry
Professional service firms can be large multinational operations (like PricewaterhouseCoopers, for example)
but more often they are small and medium-sized (SME) operations that provide administrative or technical
services to the broader local economy.
accountants
Professional
engineers
offices in the
Richmond MSA architects
graphic designers
computer programmers
management consultants
US job growth
2010-2020
+3,402,957
NAICS code
54
Appropriate city
target?
Likely
public relations & advertising agencies
media consultants
survey & market researchers
photographers
translators
testing & inspection services
The professional services sector is slightly larger in scope than the fashionably-named "creative and
knowledge-based services". Still, these categories cover roughly the same target firms, which tend to be
small and medium-sized enterprises.
Page 52
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Summary targeting potential for the city of Richmond
Advanced manufacturing - Limited
Clean tech - Limited
strategic analysis
Corporate headquarters - Likely
Creative & knowledge-based services - Likely
Finance & insurance - Possibly
Food processing - Limited
Information & communication technologies - Likely
Life sciences - Likely
Logistics - Very unlikely
R&D Centers - Likely
Retail food stores - Possibly
Professional services - Likely
Page 53
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
industry outlook
Industry Outlook
■ Some potential
targets may overlap.
For example, creative
& knowledge-based
services are a subset
of professional
services.
▪▪▪▪
■ Based on TIP
Strategies' definition,
"advanced
manufacturing" tracks
total manufacturing
employment since, in
theory, all
manufacturing firms
will soon need to be
"advanced" in their
processes in order to
survive.
▪▪▪▪
■ Emerging
industries like clean
tech, life sciences,
and R&D centers are
still quite small
employers within the
City of Richmond.
Current size of the potential target industries
Number of jobs in the City of Richmond as of 2010
Professional services
12,004
Corporate headquarters
10,340
Finance & insurance
8,135
Advanced manufacturing
7,330
4,313
Creative & knowledge-based services
Food processing
2,745
Information & communication technologies
2,624
Logistics
1,963
Retail food stores
1,620
Clean tech
570
Life sciences
388
R&D centers
259
0
2,000
4,000
6,000
8,000 10,000 12,000 14,000
SOURCES: EMSI Complete Employment - 2nd Quarter 2010
Page 54
Concentration ratios of the potential target industries
City of Richmond, location quotient analysis, 2010
m
an
ai
uf
lf
ac
oo
tu
d
Li
rin
st
fe
or
g
sc
es
ie
nc
In
es
fo
rm
at
io
n
Fi
&
na
co
nc
m
e
m
&
un
C
i
n
re
ic
su
at
at
ra
iv
io
nc
e
n
e
&
te
Pr
kn
ch
of
o
no
w
es
lo
le
si
gi
dg
on
es
eFo
al
b
od
se
as
rv
ed
pr
ic
oc
se
es
es
rv
C
or
ic
si
es
po
ng
ra
te
he
ad
qu
ar
te
rs
ed
R
et
an
c
te
ch
tic
s
an
A
dv
2.75
C
le
D
ce
3.00
Lo
gi
s
nt
er
s
US average for each industry = 1.00
Regional strength > 1.25
Regional weakness < 0.75
R
&
■ Technologically
advanced industries
like R&D, logistics,
clean tech, life
sciences, and
advanced
manufacturing have a
relatively small
presence within the
City of Richmond.
▪▪▪▪
■ We also confirmed
that grocery stores
are underrepresented within
the city based on
relative employment
patterns.
▪▪▪▪
■ The city's location
quotient for corporate
headquarters is 5.5,
which in very strong.
The US average is
1.0.
3.00
5.5
2.75
2.50
2.50
2.25
2.25
2.00
2.00
1.75
1.75
1.50
1.50
1.25
1.25
1.00
1.00
0.75
0.75
0.50
0.50
0.25
0.25
0.00
0.00
Average
Average
industry outlook
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
SOURCES: EMSI Complete Employment - 2nd Quarter 2010
Page 55
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
US outlook for the potential target industries
National job growth history (2003-2009) and forecast (2010-2020)
Clean
tech
Creative
services
Finance &
insurance
Food
processing
2020
2003
2020
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
2003
2020
Prof
services
2020
2003
2003
Retail
food stores
2020
2003
2020
2003
2020
2003
2003
2020
2020
R&D
centers
Logistics
2020
2020
2003
Life
sciences
2003
2020
Information &
Communication
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
Corp
HQs
forecast
2003
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
2003
industry outlook
Advanced
mfg
6%
4%
2%
0%
-2%
-4%
-6%
-8%
-10%
SOURCES: EMSI Complete Employment - 2nd Quarter 2010
■ The national outlook for job growth for most of Richmond's potential targets is weak.
▪▪▪▪
■ Even in those sectors where a post-recession bounce in employment is forecast, the growth is expected to fade quickly.
▪▪▪▪
■ Manufacturing will take the longest of any of the potential targets to fully recovery.
Page 56
■ TIP ran two scenarios
for Richmond's future
job growth in the
potential targets. One
scenario applies
national forecast growth
rates to Richmond's
current employment
(blue bars). The other
scenario uses EMSI's
forecast for the city of
Richmond (yellow bars).
The forecasts diverge
significantly for some
sectors, including
corporate HQs, logistics,
food processing, and
advanced
manufacturing.
▪▪▪▪
■ The local industry mix
in manufacturing, food
processing (includes
tobacco products), and
logistics may explain
why the local forecasts
are worse than the
national average.
▪▪▪▪
■ Many of the service
sector targets are
expected to grow under
both scenarios.
Growth scenarios for the potential targets, 2010 to 2020
City of Richmond's growth under two different assumptions
US forecast conditions (national growth rates)
City's growth assuming local patterns continue as in the recent past
Professional services
Finance & insurance
Creative & knowledge-based services
Corporate headquarters
Logistics
Information & communication technologies
R&D centers
Food processing
Life sciences
Clean tech
Retail food stores
Advanced manufacturing
-2
,5
-2 00
,0
-1 00
,5
-1 00
,0
0
-5 0
00
+0
+
+1 500
,
+1 000
,
+2 500
,
+2 000
,
+3 500
,0
+3 00
,
+4 500
,0
00
industry outlook
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
SOURCES: EMSI Complete Employment - 2nd Quarter 2010
Page 57
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Initial list of potential target industries for investigation
Based on a review of national, regional, and local industry forecasts and conditions for the initial list of targets, TIP has
prioritized each sector for either business recruitment or business retention.
industry outlook
Priority target industries for the City of Richmond
▲▲▲ Corporate headquarters
▲▲
Professional services, especially SMEs
▲▲
Creative & knowledge-based services, a key subset of professional services
▲▲
Information & communication technologies, especially security technologies
▲▲
Finance & insurance
▲▲
Life sciences
▲▲
R&D centers
▲
Retail food stores, especially fresh produce markets in underserved
i hb h d
Business retention as needed, but recruiting will be more competitive in suburbs
▼ Advanced manufacturing
▼
Clean tech
▼
Food processing
▼▼
Logistics
Page 58
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Corporate Headquarters
industry outlook
At a minimum, most corporate and regional offices will require a good selection of Class A office space at
Location
requirements & competitive prices. A proven pool of local management talent is also a good selling point. Also important is
the presence of a major airport with multiple nonstop destinations. Hub airport cities often have an advantage
patterns
in attracting corporate offices because they offer good air connections, but some hubs tend to be dominated
by a single carrier and this can negatively impact local ticket prices. More airline competition at a given airport
can mean more competitive prices for nonstop flights.
Why the City of Richmond has a long history of supporting corporate headquarters. The city's location along the southern
outskirts of the nation's most populous urban corridor (Boston to Washington) cannot be underestimated.
Richmond?
With this location, Richmond offers fast access to the major east coast cities, but at a much smaller cost than,
say, New York City, Boston, or Washington, DC.
Most major cities have concentrations of corporate headquarters; however, these are generally clustered by
Geographic
concentrations industry. In other words, not every city would have a cluster of corporate headquarters that would be a natural
fit for Richmond. Los Angeles, for example, has a strong cluster of media-related companies, many of which
would be unlikely to relocate to Richmond or even merge with or acquire a local firm. In considering the city's
best fits, think in terms of the industries which already have a strong corporate or R&D presence. Geneally,
these include financial services and power/energy/materials. The Boston-Washington corridor is rich with
corporate offices for banking and insurance, especially New York, Philadelphia, Stamford, and Hartford.
When considering energy, power, and raw materials, cities like Houston, Cleveland, Akron, and Pittsburgh,
may have corporate bases that are good matches for Richmond.
Employment
multiplier(s)
1.6
Page 59
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Professional services, especially SMEs
industry outlook
Professional services firms spring up on their own to service local industries and the local population.
Location
requirements & Membership organizations and law offices often need to be located in or near the CBD to be close to courts
and other government buildings. For all other types of professional services, there is less need to stay
patterns
centrally located since employees and customers may be located in the suburbs. Attracting and keeping
these professional service organizations in the CBD or other centrally located offices can often become a
quality of life issue. Is the city a place they want to be? Is it a place that is as attractive for workers as it is
for residents?
Why the City of State capitals almost always have an advantage over other cities because of the "capital complex" effect on
employment. It is good to have a critical mass of permanent activity like this in the city center that is attractive
Richmond?
to professional services firms. Having universities and colleges nearby adds even more vibrancy.
Professional services firms are less likely to be recruited than to be retained and nurtured. The key
Geographic
concentrations geographic issue here is the city-or-suburb question. For those professional services firms that do not need to
be in or near the CBD, what is it about the City of Richmond that will make them want to stay?
Employment
multiplier(s)
1.6
Page 60
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Creative & knowledge-based services
(a key subset of professional services)
industry outlook
Some types of professional services, including multimedia, design, advertising, and some types of software,
Location
requirements & often employ workforces that are younger, more casual, and perform more highly creative tasks. These firms
may be interested in creative workspaces (such as rehabbed buildings) and active street life. There may be
patterns
more of a natural tendency for these businesses to want to be in an urban environment than a suburban one.
A key issue for these firms will be the ability to attract and retain a skilled workforce with cutting-edge
knowledge in a rapidly changing technological environment.
Why the City of For the larger, successful firm that sells its services mostly outside the Richmond area (e.g., a gaming
software firm) the quality and depth of the local market will be a decisive factor for expansion. Do Richmond's
Richmond?
colleges and universities provide the scope and depth of fresh talent that these firms will need to grow (and
stay) in the city of Richmond?
All cities have at least a few creative and knowledge-based firms that support local businesses, but a few
Geographic
concentrations cities have specific clusters of local firms who reach a much wider market. Most of the cities along the West
Coast host strong in creative and knowledge-based service clusters, especially Los Angeles where a wide
range of small multimedia firms support all aspects of film and television production. Along the East Coast,
New York also has an unusually large base of creative firms that support its publishing, broadcasting,
advertising, and fashion-marketing activities. University towns of all sizes also have an advantage, with
students or professors sometimes taking a concept out of the lab or classroom to launch a new venture. Two
of the most widely used statistical softwares, for example, SAS and Stata, are not based in Silicon Valley.
They're in the college meccas of Raleigh/Durham, NC, and College Station, TX, respectively.
Employment
multiplier(s)
1.7 computer systems design
1.6 architecture & engineering
1.5 specialized design
1.4 customized computer programming
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Information & communication technologies
(especially security technologies)
industry outlook
Information & communication technology (ICT) covers a broad range of activities. Due to its proximity to
Location
requirements & Washington metro area, a primary opportunity niche within ICT for Richmond is security services. While
much of the security-related ICT activity may occur in the private sector, much of the market demand in the
patterns
post-9/11 world comes from the public sector (e.g., installing webcams in subways, securing computer
networks, screening airline passengers, and creating physical back-up sites for electronic public records and
files).
Why the City of Much of the cutting edge activity in ICT security occurs in the Northern Virginia suburbs of Washington.
Many of the fast-growing companies performing this work may find Northern Virginia expensive and may also
Richmond?
need to tap other labor supplies without straying too far from the Defense Department, Homeland Security, or
other government markets or contacts. Richmond provides a perfect site for these types of expansions or
relocations.
Washington, DC, is clearly the dominant government market for IT security, but demand will also be
Geographic
concentrations generated to a lesser degree, by state and local governments. In the private sector, all industries will need
some degree of computer or network security. Some industries, like department stores and casinos, employ
extensive surveillance equipment to protect against theft and other crimes among patrons. For Richmond,
TIP suggests the growing number of security-oriented firms in the DC area (especially the Northern Virginia
suburbs) will offer the greatest opportunities for expanding the local ICT sector.
Employment
multiplier(s)
1.7 computer systems design
1.6 architecture, engineering
1.5 specialized design
1.4 customized computer programming
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Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Finance & insurance
industry outlook
Large banking and insurance companies often consolidate and move back-office operations to less
Location
requirements & expensive, remote locations. New York-based JP Morgan Chase operates a great deal of back-office activity
in Tampa. Similarly, Boston-based Fidelity operattes back office facilities in the suburbs of Dallas-Fort Worth.
patterns
Northern Virginia-based Capital One locates most of its support activities in the Richmond area. The 2008
economic crisis and the recently passed financial reform legislation imply that the years ahead will be a period
of industry restructuring, which could include consolidation, mergers, acquisitions, and relocations.
Why the City of The Boston-Washington urban corridor provides the highest density of financial services activities in the
nation. Richmond's location along the southern outskirts of this corridor gives it fast access to the urban
Richmond?
Northeast at relatively low cost.
The Boston-Washington corridor is rich with corporate offices for banking and insurance, especially New York,
Geographic
concentrations Philadelphia, Stamford, and Hartford.
Employment
multiplier(s)
1.6
Page 63
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Life sciences
industry outlook
Begining in the 1990s, biotech became one of the most sought-after industry recruitment targets thoughout
Location
requirements & the developed world. However, after many years of frustration, many economic development agencies have
found it nearly impossible to "recruit" biotech companies. There are two reasons for this. First, biotech
patterns
companies typically have strong ties to the local knowledge infrastructure (universities, medical schools,
clinical, or teaching hospitals). Second, by the time biotech companies normally reach expansion size, they
are acquired by larger pharmaceutical firms. The big pharma companies like Pfizer and Johnson & Johnson
grow by acquisition, picking up new products by acquiring small life science start-ups where much of the initial
Why the City of Based on location patterns, cities that have the most success in life sciences industries are those that have
the necessary infrastructure in place to spawn a continuious stream of new companies. While Richmond
Richmond?
does not have the extensive medical and university infrastructure of San Francisco or Boston (few places do),
it certainly has more of the necessary pieces available than many of its competitors.
Life science concentrations in the US are strongest in Boston, Washington, DC/Maryland suburbs,
Geographic
concentrations Philadelphia, San Diego/Southern California, and the San Francisco Bay Area. Smaller concentrations can
also be found in St. Louis, Houston, and Seattle. Life sciences are also growing outside the US, especially in
Europe, Israel, and Japan. In Europe, life sciences firms are particularly well developed in Switzerland,
Germany, the UK, the Netherlands, France, Sweden, and Iceland. The merger and acquisition market
between US and European firms is active. Companies from Israel and Japan may also be seeking ways to
enter or tap into the US market. Building relationships with major industry players in these countries may be a
viable strategy.
Employment
multiplier(s)
2.3 in-vitro diagnostic substance mfg.
2.1 biotechnology; lab equipment mfg.
2.0 botanical-based medicine development; dental equipment mfg.
1.9 pharmaceuticals; surgical supplies
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - R&D centers
industry outlook
R&D centers can be internal corporate facilities, for-profit contract operations, or centers affiliated with a public
Location
requirements & or non-profit institution such as a university, hospital, civilian government agency, or military/defense agency.
Their location requirements and patterns will vary significantly, but the common theme is that all will require an
patterns
ample labor market with advanced scientific or technical degrees.
Why the City of Richmond's location along the southern end of the Boston-Washington urban corridor gives it fast access to
the urban Northeast at relatively low cost. This corridor is home to many of the nation's largest companies,
Richmond?
its most prominent universities, and, of course, the entire complex of federal government administration and
research.
R&D centers for various activities can be found throughout the country but they are naturally going to be
Geographic
concentrations drawn to urban areas with highly educated labor markets, especially areas with high concentrations of science
and engineering activities like the San Francisco Bay Area, Washington, DC, and Boston. In recent years, US
companies have become more comfortable locating R&D facilities abroad, including high-profile locations like
Cambridge (UK), Shanghai (China), and Bangalore (India). Richmond may want to consider that countries
with active private-sector science and engineering activities but with small labor markets (e.g., Israel, Iceland)
or shrinking labor markets (Japan) may be among the more likely foreign investors to locate R&D facilities in
the US going forward.
Employment
multiplier(s)
1.7
Page 65
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Proposed target industries - Retail food stores
(especially fresh produce markets in underserved neighborhoods)
industry outlook
In theory, retail chains will locate their stores close to untapped populations with spending potential. By this
Location
requirements & measure, all areas of a city or urban center should be evenly served, but research in recent years has shown
that inner city neighborhoods tend to be surprisingly under-retailed, especially when it comes to healthy food
patterns
options. Attracting more food retailers into under-served areas would not only serve the community well, it
could in fact generate a few more local jobs in areas of the city where unemployment rates are highest and
job skills may be somewhat limited.
Why the City of In our initial research for the City of Richmond, TIP Strategies noticed that employment data showed the city
to be somewhat under-retailed compared with the surrounding suburbs. We have, thus, extended this
Richmond?
analysis to focus on food/grocery stores and have found the city's national location quotient (0.66) to be
surprisingly low.
Retail store activities are some of the most evenly spread of all economic activities in the US. Except in areas
Geographic
concentrations with high tourist traffic, location quotients for retail activity rarely deviate too much from 1.0, the national
average. As we noted, the City of Richmond's location quotient 0.66 for retail grocers and supermarkets is
alarmingly low.
(Please note our research stopped here. We did not investigate nor do we imply correlations or causal
relationships for this trend as other studies have attempted to do. We merely note that the location quotient is
highly unusual and that underserved areas could reap the double benefit of better access to healthy foods
and local jobs if more grocery options were located in these areas.)
Employment
multiplier(s)
1.5
Page 66
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
Connecting target industries to available labor
Occupational groups most likely to be in demand by the targets
Target industries by row; occupational groups in columns
>40% of target industry's jobs
25-40% of target industry's jobs
Production
Architecture & engineering
Life, physical, & social science
Arts, design, & media
Transportation & material moving
Installation, maintenance, & repair
Food preparation & serving
Legal
Healthcare (technical)
Property maintenance
Construction & extraction
Personal care & service
Healthcare (support)
Education, training, & library
Protective service
Community & social services
Farming, fishing, & forestry
Corporate headquarters 0.3 0.1 0.2 0.1 0.2
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
1-10% of target industry's jobs
<1% of target industry's jobs
Occupational groups ►
Target industries ▼
Professional services 0.2
Business & financial operations
Management
Computer & mathematical science
10-25% of target industry's jobs
Sales
■ This matrix shows
the anticipated
staffing patterns of
firms in the target
industries (based on
national hiring trends
for each industry).
▪▪▪▪
■ Some occupational
groups (e.g., officea &
administrative support
and computer and
mathematical
science) would clearly
be more in demand
than others.
▪▪▪▪
■ As a group, these
target industries
would boost
occupational
employment across a
wide range of skill
levels.
Office & administrative support
workforce implications
Workforce Implications
0 0.1 0.1 0.1
0 0.1 0.1
0
0
0
0 0.1
0
0
0
0
0
0
0
0
0
0 0.1
0 0.2
0
0
0
0
0
0
0
0
0
0
0
0
0
Information & communication technologies 0.2 0.1 0.1 0.1 0.1
0
0
0 0.2
0 0.1
0
0
0
0
0
0
0
0
0
0
0
Finance & insurance 0.5 0.1 0.2 0.1 0.1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0.1 0.4 0.1 0.1
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0.1
0
0
0
0
0
0
0
0
0
0
Creative & knowledge-based services 0.2 0.1 0.1 0.2 0.1
Life sciences 0.1
0 0.1
R&D centers 0.1
0 0.1 0.1 0.1
Retail food stores 0.2 0.4
0
0
0 0.1 0.3
0 0.1
0
0
0 0.1
SOURCES: EMSI Complete Employment - 2nd Quarter 2010
Page 67
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Comprehensive Economic Development Strategy – Development Opportunities Analysis
WORKFORCE RETENTION AND
EXPANSION
The Department of Economic and Community Development (DECD) has
elevated the issue of workforce development as a central objective of the
city’s economic development efforts. Moreover, rather than approaching
workforce development programming from a purely social services
approach, DECD is committed to a more holistic model that applies an
economic development perspective to solving the challenges of longterm unemployment and poverty.
A central strategy of this approach is increasing the City’s capacity to
directly engage Richmond businesses. The goal is to work with regional
workforce development partners to craft demand-driven programs based
on input from private sector employers. The input will be gathered from a
strengthened Workforce Development Unit (WDU) composed of DECD
staff conducting one-on-one interviews with Richmond businesses.
These interviews are carried out as part of Business First Greater
Richmond, a regional business retention and expansion program
supported by City of Richmond, the Greater Richmond Partnership, and
the Counties of Henrico, Hanover, and Chersterfied.
This section provides a general overview of the region’s workforce
development resources and a more specific review of the City’s process
and tools for collecting input from businesses to in order to design more
effective workforce development programs.
Business First Greater Richmond
Launched in October 2006, Business First Greater Richmond is a public-private
collaborative regional initiative supported by the Greater Richmond Partnership, Inc,
the City of Richmond, the Counties of Chesterfield, Hanover and Henrico. It is also
supported by more than 80 business volunteers and other agencies in the region
committed to the growth and retention of area businesses.
Workforce Resource Mapping
TIP was asked to prepare an overview of the federal, state, and local
resources for prospective and existing businesses in Richmond. Below is
a summary of the numerous organizations that provide workforce
assistance services to individuals and businesses in Richmond.
Federal
United States Department of Labor (DOL)
(www.dol.gov)
The Department of Labor fosters and promotes the welfare of the job
seekers, wage earners, and retirees of the United States by improving
their working conditions, advancing their opportunities for profitable
employment, protecting their retirement and health care benefits, helping
employers find workers, strengthening free collective bargaining, and
tracking changes in employment, prices, and other national economic
measurements. In carrying out this mission, the Department administers
a variety of Federal labor laws including those that guarantee workers’
rights to safe and healthful working conditions; a minimum hourly wage
and overtime pay; freedom from employment discrimination;
unemployment insurance; and other income support.
U.S. Department of Labor Occupational Safety & Health Administration
(www.osha.gov)
The Occupational Safety and Health Administration aims to ensure
employee safety and health in the United States by working with
employers and employees to create better working environments.
State
Virginia Economic Development Partnership (VEDP)
(www.yesvirginia.org)
VEDP offers a variety of incentives to prospective and existing
businesses, including tax credits and tax exemptions.
wwwbusinessfirstrichmond.com
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Virginia Employment Commission (VEC)
(www.vec.virginia.gov)
VEC provides a wide variety of no-fee services to employers, including
exposure of job vacancies, recruitment assistance, labor market
information, and tax credit information.
Virginia Department of Business Assistance (VDBA)
(www.dba.virginia.gov)
VDBA’s Workforce Services division provides customized recruiting and
training services to companies that are creating new jobs or experiencing
technological change. The program reduces the human resource
development costs of new and expanding companies. Workforce
Services offers consulting services, organizational development support,
electronic media services, and funding.
Virginia Department of Housing and Community Development (DHCD)
(www.dhcd.virginia.gov)
DHCD manages the Virginia Enterprise Zone program, which is a
partnership between state and local government that stimulates job
creation and private investment within designated areas throughout the
state. The enterprise zone program offers job creation grants to qualified
businesses located within one of the state’s 50 designated enterprise
zones. There are three enterprise zones located in and around the city of
Richmond.
Virginia's Electronic Labor Market Access (VELMA)
(www.vwn.virginia.gov/localwia.cfm)
VELMA offers employers recruitment, labor market, and education
services. As part of the Virginia Employment Commission, VELMA is
able to provide labor market analysis, determine competitive starting
salaries, provide information on suitable training providers and programs,
and place job orders and candidates. VELMA also offers labor market
research, economic and demographic data and comparative information
over time and between regions.
Virginia Department of Labor and Industry (DLI)
(www.doli.virginia.gov)
DLI has responsibility for regulating payroll and wages, minimum wage,
equal pay, right-to-work, child labor, apprenticeship training.
Virginia Council on Human Rights
(www.chr.virginia.gov)
The Council is responsible for programs to aid persons with disabilities,
minors and the elderly and to prevent unlawful discrimination.
Virginia Department of Minority Business Enterprise (VDMBE)
(www.dmbe.state.va.us)
VDMBE provides certification of those businesses wishing to participate
in the Commonwealth's minority business programs. VDMBE provides
direct assistance to disadvantaged business owners, state and federal
agency procurement officials, the Commonwealth's Historical Black
Colleges and Universities (HBCUs) and prime contractors. VDMBE's
Service Division provides management and technical assistance.
Local
Reemploy Virginia – Richmond
(www.vaemploy.com)
This office is part of a new program by the VEC designed to serve
businesses, claimants, and job seekers. 'Reemploy Virginia' is a team
approach to plan and deliver reemployment services in communities
around the Commonwealth. The goal is to assist employers in filling job
vacancies and in assisting individuals in returning to work. Assistance
will be provided with the Virginia Workforce Connection, the site where
employers may post job openings and job seekers can register and find
suitable jobs. Employers with job opportunities will be identified and the
'Reemploy Virginia' team will provide assistance in matching job seekers
with available jobs. VEC staff that provides unemployment insurance
assistance to claimants will advise and refer claimants to those services
that are available to them.
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Comprehensive Economic Development Strategy – Development Opportunities Analysis
Greater Richmond Partnership
(www.grpva.com)
The GRPVA is the economic development agency for Richmond,
Chesterfield, Hanover and Henrico and can direct new and expanding
companies to local employment and training resources.
Greater Richmond Chamber
(www.grcc.com)
The Greater Richmond Chamber's mission is to serve its members and
enhance the community by building a pro-business environment and
outstanding quality of life. The chamber is a catalyst for business
development and the voice of business in Greater Richmond.
Greater Richmond Small Business Development Center
(www.grsbdc.com)
The Greater Richmond Small Business Development Center is a
partnership program between the U.S. Small Business Administration
and the Greater Richmond Chamber including, providing assistance and
training to help small business owners and potential small business. The
GRSBDC offers confidential, individual counseling as well as workshops,
conferences and courses at various locations in its service area.
Capital Region Workforce Investment Board
(http://www.cawib.org/)
The purpose of the Capital Region Workforce Investment Board is to
increase private sector employment opportunities and to ensure the
integration of services to prepare individuals to meet the needs of
business and industry in the Richmond region. The CRWIB also
oversees the activities authorized under the federal Workforce
Investment Act (WIA) of 1998. The City of Richmond and the Capital
Area have merged to create the newly formed Capital Region Workforce
Partnership.
Virginia's CTE Resource Center
(www.cteresource.org)
The CTE center offers a variety of products and services to the Virginia
Department of Education, other state agencies funded under the Perkins
Act, and local school divisions throughout the Commonwealth. The
address for the Richmond Center is located on Bremo Road.
Community College Workforce Alliance (CCWA)
(http://ccwa.vccs.edu/)
CCWA is a partnership dedicated to supporting economic development
and providing world-class workforce training and services to both the
public and private sectors. Our vision is to maximize the talents and
resources of J. Sargeant Reynolds Community College and John Tyler
Community College in an effort to provide the workforce of Richmond,
the Tri-Cities and surrounding counties with the highest training that
enhances individual lives and the economic vitality of the Central Virginia
region.
Adult and Continuing Education (ACE)
(www.richmond.k12.va.us/adulted/)
Specialization: Adult Basic Education Classes, GED Preparatory Classes
Adult Career Development Center
(www.richmond.k12.va.us/schools/acdc/)
Specialization: Certified Nursing Assistants, Childcare, Culinary Arts
Capital Area Training Consortium
(www.co.henrico.va.us/catc/)
Specialization: Career Assessment, Career Counseling, Employment
and Re-employment Assistance
Richmond Technical Center
(www.richmond.k12.va.us/schools/rtc109/)
Specialization: Agriculture/Horticulture Sciences, Architectural and
Engineering Drafting and Design, Auto Body Technology (Paint), Auto
Body Technology (Repair), Automotive Technology, Barbering, Basic
Carpentry, Beauty Salon Assistant, Building Management, Cosmetology
Page 70
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Comprehensive Economic Development Strategy – Development Opportunities Analysis
Workforce Development
The section below offers an evaluation of the effectiveness of existing
workforce development programs within the DECD, focusing primarily on
the existing business survey instrument. As mentioned above, DECD
has recently modified its approach to workforce development programs
by emphasizing demand-driven programs requested by local private
employers. Since 20006, this information has been gathered from
business interviews conducted by City staff as part of Business First
Greater Richmond. Regional business are encouraged to fill out an
interview request form on the Business First website and direct it to an
economic development professional representing the community in
which they are located – either Richmond or one of the partnering
counties. DECD staff also target for interviews businesses that are
participating in the City’s Commercial Area Revitalization Effort (CARE)
program or are in one of the target industry growth sectors.
Canada’s evaluation process is designed to provide a frame of reference
for tailoring the survey questions to get the most out of interactions with
business executives. The table below summarizes the breakdown of the
Business First survey instrument compared to national averages of
survey instruments in the U.S. and Canada.
Business Retention Survey Benchmarks
Business First Survey
Question Type
The focus of the interview is a 12-page survey administered by the
interview team. The survey, designed by Executive Pulse, solicits very
specific information from businesses on such issues as workforce, sales,
e-commerce, capital expenditures, and business climate. The completed
surveys are submitted to the Greater Richmond Partnership, which
enters the data, tabulates the results, and drafts an annual report.
To assess the nature and quality of questions contained in the survey,
TIP utilized a business retention survey evaluation tool developed by
Blane, Canada Ltd., a Canadian-based economic development
consulting firm specializing in business retention and expansion. Blane,
Number
Pct
Number
Pct
Confirmation (CQ)
42
49%
16
53%
Assistance (AQ)
0
0%
3.5
11%
Problem Identification
(PIQ)
15
18%
8
25%
Predictive (PQ)
8
9%
1
4%
2
2%
0
1%
16
19%
1.5
5%
2
2%
0
1%
85
100%
30
100%
Industry Intelligence
(IIQ)
Company Intelligence
(CIQ)
Buyer/Supplier
Linkages (BSLQ)
During the 2009/2010 program year, Business First professionals
conducted 533 face-to-face interviews in the region. Of these, City staff
conducted 66 interviews – 34 short of the goal of 100. Members of the
interview team DECD staff and local business volunteers. Senior City
elected leadership and staff participate in interviews with Richmond’s
largest private employers.
National Averages
Total Number of
Questions
Maximum/Minimum
Count
Estimate of Average
Survey Time
54/15
185 minutes
40 minutes
Findings and Recommendations
•
According to the numbering of questions, the Greater Richmond
Business First survey contains 129 questions. For our count, TIP
consolidated similar or compound questions as one question and did
not include visit information section questions. After these
adjustments, TIP still counted 85 total questions in the survey
Page 71
RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Development Opportunities Analysis
instrument. This includes 17 compound, multi-part, or open-ended
questions.
•
According to Blane, Canada’s evaluation methodology, it would take
an average of 185 minutes to complete the 85 questions in the
Greater Richmond Business First survey. This amount of time is
almost 5 times the national average of 40 minutes for 30 questions.
TIP, however, recognizes that the Business First interviews do not
consume 185 minutes of time. DECD staff report business retention
interviews take approximately 45 minutes.
Executives value their time, and the interviewer must be respectful of
this. Strategically, the time should be used for questions that are
more valuable to the business retention team.
•
The balance of question types is very similar to the national
averages overall. However, the survey would benefit from fewer
questions seeking basic company information and additional
questions seeking to identify problems the company may be
experiencing, predict possible trends, gain industry intelligence, and
learn more about potential buyer/supplier linkages.
BRESurvey Completion Time Calculation
•
40 minutes
(national average survey time)
+
110 minutes
(2 minutes X 55 questions longer than national avg.)
+
34 minutes
(2 minutes X 17 compound questions)
=
185 minutes
(assumes a casual, conversational interview style)
The Local Workforce section of the survey should include some
additional questions. First, there should be a question asking if
there are training and education programs lacking in the region that
are critical the company needs. In addition, the survey should ask
what actions, if any, could the City take that would help attract,
develop, and retain the talent their industry needs?
•
The survey may include a few Assistance Questions (AQ). Such
questions involve offering help to solve problems generally controlled
by local and state government (e.g., zoning issues, taxes,
transportation). While assistance questions should be minimized in
surveys administered by non-governmental economic development
organizations such as chambers of commerce, the DECD’s business
retention team could incorporate assistance offers in their surveys
and interviews. To maintain credibility with local businesses, the team
must provide timely follow-up on any matters they agree to
investigate.
•
Increasing the number of Problem Identification Questions (PIQ)
from 17 percent to 25 percent to improve the survey’s balance
and focus. Alternatively, retain the existing number of PIQs and
decrease the number of CQs. PIQs are highly valuable for an
economic development organization because they target the firm’s
unique challenges in the community and point to specific steps the
Source: Step=by-Step: Business Retention Survey Evaluation,
Blane, Canada Ltd.
•
Still, the survey should be shortened. Approximately 50 percent of
the survey is devoted to Confirmation Questions (CQ), which seek
basic information about the parent company, products, employment,
wages, and real estate. If not already done so, most or all of this
information could be gathered before the interview through basic web
research, reading annual reports, or interviewing other staff members,
rather than spending valuable time with top-ranking executives.
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City of Richmond and its economic development partners may be
able to take to retain the firm.
•
The survey has a strong balance of Predictive Questions (PQs).
At nine percent, the Greater Richmond survey more than doubles the
national average of four percent in this area of questioning. PQs
should help the City’s business retention team anticipate changes
(whether positive or negative) that could impact the company.
Investment patterns, new products, growing or contracting markets,
and emerging technology are all issues that can be addressed
through PQs.
•
Add at least one Industry Intelligence Question (IIQ). Blane,
Canada recommends as least three IIQs are included in business
retention surveys. Such questions help the team understand the
competitive environment in the industry where the company
competes. IIQs should be used to explore industry trends,
international competition, and other salient issues.
•
Company Intelligence Questions (CIQs) should be increased
from 18 percent of the survey to 30 percent. These questions
cover management practices, markets, new products, and
technological changes and will be closely related with PIQs.
•
The Buyer/Supplier Linkages Questions (BSLQs) meet the
recommended number. These questions are important because
they provide the business retention team with opportunities to follow
up with industries or companies that may interested in relocating
closer to a significant buyer. This is an excellent way to generate
investment leads for the city.
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PROJECT DEVELOPMENT
OPPORTUNITIES AND PRIORITIZATION
priorities pursued by the federal government, which are intended to
promote job creation and business expansion in the following areas:
•
Clean energy
Investment Priorities
•
Green technologies
One of the central objectives of the Richmond CEDS is the identification
and prioritization of primary development and redevelopment
opportunities in the city. TIP performed this analysis mindful of the
current strategic economic development priorities at the national level.
Consideration of national investment priorities in this process matters.
The Economic Development Administration (EDA) requires a CEDS in
order for a community or region to apply for investment assistance under
EDA's Public Works or Economic Adjustment Assistance programs.
Therefore, local projects that align with national investment priorities will
be more likely to receive federal investment assistance.
•
Sustainable manufacturing
•
Information technology infrastructure
•
Communities impacted by auto industry restructuring
•
Natural disaster mitigation and resiliency
•
Access to capital for small/medium & ethnically diverse enterprises
•
Innovations in science, healthcare, & alternative fuel technologies
EDA has established a number of investment programs designed to
assist regions and communities to become more competitive in the
global economy. The agency allocates its investment assistance through
a competitive grant process. To facilitate the evaluation of competing
grants, EDA has established the following investment priorities:
•
Collaborative Regional Innovation
•
Public/Private Partnerships
•
National Strategic Priorities
•
Global Competitiveness
•
Environmentally-Sustainable Development
•
Economically Distressed and Underserved Communities
EDA also favors projects that demonstrate the ability to use funds quickly
and effectively and are linked to specific and measureable outcomes.
Additionally, EDA favors initiatives that support the national strategic
In addition to federal priorities, TIP included in its analysis two other
critical considerations: (1) does a project align with local economic and
community development priorities and (2) will the private sector support
it.
Locally, Mayor Jones and his administration have embraced economic
development as a core, foundational service. As Richmond’s economic
development agency, the DECD has drafted a set of overarching
economic development goals that articulate the City’s priorities. These
goals are to encourage:
•
Long-term growth and development of Richmond’s job base and
labor force, and
•
A sustainable local economy that:
−
Affords access to opportunity for Richmond residents;
−
Fosters viable mixed-income residential neighborhoods;
−
Develops and supports Richmond’s tax revenue base; and
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−
Maximizes the city’s assets and advantages without
compromising the health of local communities and residents.
To achieve these goals, the City is organizing DECD’s programming to
focus on business development (including attraction/recruitment,
retention, and technical assistance), neighborhood revitalization, and
workforce development efforts (primarily targeting underemployed and
unemployed residents). These goals and efforts align well with national
and EDA investment priorities.
Finally, in its evaluation TIP considered the market feasibility of
prospective development opportunities. Too many communities and
regions make the mistake of promoting projects that may conform to
local, state, or national concerns, yet cannot generate investment or
participation from the private sector. For example, a community may
make a substantial investment in developing a new industrial park, only
to find that for various competitive reasons it is unable to attract any
tenets. As a consequence, TIP analyzed such factors as Richmond’s
competitive advantages and disadvantages, regional investment
patterns, and industry trends.
The intersection of the national, local, and market considerations, as
illustrated in the adjoining Venn diagram, is the focal point for TIP’s
evaluation of development and redevelopment opportunities in
Richmond.
What EDA prefers
What the community wants
What the market supports
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Project Descriptions
Below are brief descriptions of sites identified by the City and the
consulting team as “high priority” for new development or redevelopment
opportunities. Additional development concepts the City has considered
for the sites are also provided.
Old Armstrong High School
The Old Armstrong High School site consists of approximately 21 acres
(two parcels) near the intersection of Nine Mile Road and Interstate 64 in
the city’s East End. Owned by the City of Richmond School Board, the
property contains a 150,000 square foot building built in 1951 that was
used as Armstrong High School, a public education facility. The existing
building has been sitting mostly vacant since 2004 when Armstrong
merged with nearby John F. Kennedy High School and relocated to 2300
Cool Lane. The property also has several recreational and playground
facilities owned by the City of Richmond’s Department of Parks,
Recreation and Community Facilities.
The East End Transformation Plan, recently prepared for the City, is
integral to a larger vision for the area. Some of the recommendations of
the East End plan, however, may vary from the CEDS approach outlined
below. Putting an emphasis on economic opportunity distinguishes our
approach.
The size of the Armstrong site can be catalytic to redevelopment efforts
in the East End. One envisioned use is to raze the existing building and
construct a new facility that would house a skills development and
education center focusing on clean technologies, healthcare, and other
emerging technology fields. The facility could accommodate education
and training needs for adults as well as high school and middle school
students. For example, the site could serve as a new home for the
ageing Richmond Technology Center (see below). In addition, the East
End’s largest employer and stakeholder, Bon Secours Richmond
Community Hospital, might locate some healthcare skills and education
programs to the site.
25th Street/Nine Mile Road Gateway
Nine Mile Road in the city’s East End serves as an important primary
gateway as commuters travel from Interstate 64 and Henrico County into
the City of Richmond. Nine Mile Road and 25th Street also serve as the
commercial spine for the historic Church Hill neighborhood. The 25th
Street/Nine Mile Road corridor is poised for reinvestment and
revitalization. The Richmond Redevelopment and Housing Authority
(RRHA) has acquired numerous properties, using federal CDBG and
HOME funds provided by the City of Richmond, along 25th Street and
Nine Mile Road under a Redevelopment and Conservation Plan. RRHA
has demolished and cleared many blighted structures and vacant parcels
and now has site control in the corridor. Revitalizing this spine of the
community through targeted public investments will spur additional
private investment and redevelopment efforts throughout the
neighborhood.
Port of Richmond and Adjacent Properties
The Port of Richmond sits on approximately 120 acres bound by I-95
and the James River in south Richmond. At present, the port is
financially and operationally underdeveloped; however, there is
tremendous opportunity for the site and its assets. The furthest inland
port on the Atlantic seaboard via the James, the Port of Richmond has
access to freight rail and interstate highway transit immediately adjacent
the site. A fair amount of the site remains undeveloped, and the available
warehouse and operating spaces could be expanded. There is also
opportunity for further development in the immediate area, with
approximately 80 acres of undeveloped property along Commerce Road
(immediately west of I-95) owned by Philip Morris and DuPont (about
60/20 split), and 2.5 million square feet of warehouse space on about
107 acres at the Alleghany Warehouses just over a mile north on I-95.
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Jeff Davis Highway
Jefferson Davis Highway suffers from under-investment. It is one of
Richmond’s most distressed corridors. It lacks viable businesses to serve
the adjacent residential communities, which largely consist of low income
households. The surrounding housing stock consists mostly of small,
single family homes and public housing units inhabited by low income
residents and a growing Hispanic population. The corridor has a
substantial amount of vacant industrial property and dilapidated motels.
The corridor’s needs in regard to public infrastructure investment,
especially flood and storm water control, have crippled business and
residential development in the area.
The Boulevard
The Boulevard corridor has seen significant investment in the past few
years, following streetscape improvements made in 2006 and 2007. A
new 17-screen movie theater, two restaurants, a transportation
company, as well as others have located along the corridor. The
adjacent Scott’s Addition neighborhood has seen substantial commercial
and residential reinvestment as well. However, there is considerable
opportunity for further development of approximately 60 acres of City-,
VCU-, and RMA-owned properties bounded by Boulevard to the west,
Hermitage Road to the east, I-64/I-95 to the north, and the railroad tracks
to the south. This opportunity would be contingent on the relocation of
several City operations on the site (primarily General Services), and
consideration of the treatment of the Diamond, Arthur Ashe Center, and
VCU stadium.
Richmond Technical Center
The Richmond Technical Center is Richmond Public School’s major
vehicle for career and technical education. Located on a 16-acre campus
near Interstates 195, 95 and 64, the school is a regional center for
instruction. The Richmond Technical Center offers courses for middle
and high school students. The on-campus Adult and Career Education
Center provides adult classes. Currently the Center provides over 40
dual enrollment and honors courses and 54 credential programs to 1,421
students, in partnership with 123 business and community partners.
Environmental technology and LEED construction are two new areas of
focus, though opportunities abound for partnership training with
members of the business community on a regional as well as local scale.
Cloverleaf Mall
While Cloverleaf/Greenbrier Mall itself is in Chesterfield County, there
are approximately 120 acres of undeveloped, privately-owned real estate
immediately west of the Chippenham Parkway which are in the City. The
current zoning is residential. In the past there have been discussions
about the potential for a collaborative project between the City and the
County to develop a technology park, or other cost and revenue sharing
development efforts.
Biotech Park Expansion
The Virginia Biotechnology Research Park in downtown Richmond is a
joint initiative of the Commonwealth of Virginia, the City of Richmond,
and Virginia Commonwealth University. It is home to the Philip Morris
Research Center, the headquarters of the United Network for Organ
Sharing, and the offices of the State Medical Examiner. Overall, the park
hosts over 63 bioscience companies, research institutes, non-profits and
government laboratories in nine buildings. The facilities themselves
encompass over 1.1 million square feet of space and represent a total
capital investment exceeding $525 million. Biotech Ten is the next
building to be constructed in the Park and will house two proposed new
centers: the Virginia Biosciences Education and Visitors Center (VBEVC)
and the Virginia Life Sciences Commercialization Center (VLSCC). As
envisioned, the VBEVC would be a state-of-the-art center designed to
accommodate visiting delegations. More importantly, the center would
serve as a bioscience education laboratory offering experiential learning
opportunities for the region’s middle and high school students. The
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VLSCC would include offices, wet and dry labs, and some light assembly
space. It would be designed to accommodate growing life sciences and
clean tech companies in the critical “middle ground” of space needs
between 2,500-5,000 square feet.
The Coliseum, Blues Armory, & Festival Park
The Richmond Coliseum sits on approximately seven acres of property
bound on the north by East Leigh Street, on the west and on the east by
5th and 7th Streets respectively, and on the south by Festival Park and
the 6th Street Marketplace/Blues Armory. The coliseum seats
approximately 12,000 to 13,500 people, depending on its configuration. It
is in need of substantial revitalization, including a new roof and painting,
among other maintenance and repairs. The City is currently working with
private sector partners, and has engaged a consultant to determine the
highest and best use of the property on which the coliseum sits, as well
as to consider whether the coliseum should be improved, removed, or
replaced in its present or a different location. The Blues Armory on the
corner of 6th and Marshall Streets are listed on the National Register of
Historic Places, and were most recently used for City offices and dining.
The 1910 light infantry armory and the attached enclosed market known
as the 6th Street Marketplace were considered by a ULI TAP in 2008; the
group suggested that the building be adapted into a boutique hotel or
residential property. The TAP also concluded that the success of any
project involving the Blues Armory/6th Street Marketplace would be
contingent upon improvement or repositioning of the Coliseum.
Primary City Gateways
Richmond is fortunate to have significant rail and automotive
transportation assets, including two interstate highways, one of which (I95) is one of the most heavily traveled in the country. In addition,
Richmond’s position as the central urban core of a larger metropolitan
region also means there are major arterial streets which connect the city
to the neighboring counties. Both the interstates and these arterial
streets create a plethora of “gateways” through which substantial traffic
enters the City. Unfortunately, it is widely recognized in the tourism and
economic development communities that Richmond has not properly
capitalized on these gateways to create a sense of arrival, or to ensure
that these gateways are aesthetically pleasing. The primary gateways
which warrant a revitalization strategy include:
•
West Broad Street entering the city at Staples Mill
•
Exits off I-64/I-95, including Boulevard/Hermitage, 3rd Street/5th
Street, Chamberlayne/Belvidere, 15th Street/Franklin Street, 17th
Street/Broad Street (near Cold Storage)
•
360 West entering the city at I-64
•
Midlothian Turnpike, Hull Street, and Jefferson Davis Highway
entering the city from Chesterfield, and entering downtown from
southside
•
Route 60 West entering the city at Montrose Heights, and Route 5
North entering the city at Rockett’s Landing
•
Nine Mile Road, and Creighton/Fairfield entering the city at I-64
•
Laburnum Road entering the city on Northside, and Chamberlayne
at Azalea
Broad Street Corridor
Broad Street is a major east-west traffic artery which runs through
Richmond, and serves as a gateway to downtown, VCU, and many of
the retail and entertainment venues in the City. However, Broad Street
from 5th Street to Belvidere is characterized by blight, vacancy, and
disinvestment. While much of Belvidere to Foushee Street has been
revitalized, driven largely by the burgeoning art community and the
growth of VCU over the past several years, there are still opportunities in
this area. However, Foushee Street to 5th Street represents an even
more distressed area. A complicating factor is that a significant number
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of opportunities have been assembled by a single development interest,
and the developer currently lacks the capacity to revitalize all of the
properties. The Broad Street corridor is a high priority revitalization target
due to its arterial nature; its proximity to downtown, VCU, other key
corridors in need of revitalization; and its significant public assets and
major entertainments venues.
Manchester and Hull Street
Manchester, located on the south side of the James River from
Downtown, is characterized by its gridded cobblestone streets and late
19th century industrial warehouses. Hull Street serves as the major eastwest thoroughfare for the south side of Richmond and was a thriving
retail corridor until markets moved to more suburban locations in the
1960s through 1980s. In Manchester, the sale of vacant land to private
developers has reinvigorated the neighborhood. Local developers are
building single-family, two-family, multifamily residential, retail space and
senior housing for rent and sale. Recently, the City completed a major
expansion of the Manchester courthouse, and relocated court facilities
and the Commonwealth Attorney’s Offices to this location. The
“industrial” portion of Hull Street has also experienced significant
reinvestment in recent years by way adaptive reuse of warehouse
buildings. While Hull Street continues to be a significant commuter route,
numerous storefronts that line the street remain vacant.
Shockoe Bottom (Study Area)
The Shockoe Bottom study area is one of the most historically significant
neighborhoods in the Richmond, due to its role in the slave trade during
the 18th and 19th centuries, its later industrial and commercial growth
and success during the heyday of the canal, and its key role in rail
transportation. With easy access to I-95, I-64, Broad Street, Main Street,
the Capital Trail, the Slave Trail, the Canal Walk, and Main Street
Station, there is a high and increasing volume of pedestrian, bicycle,
auto, and rail traffic. There are approximately 20 acres of undeveloped
and vacant property in addition to underinvested areas. Property owners
include VCU, the City, and several private interests, most notably the
Loving family. Federal, State and City resources have been heavily
invested in the area, primarily to develop and improve transportation and
storm-water management infrastructure. There are many key
commercial, government, historic, cultural, and residential stakeholders
who would be involved in any development effort in the area. Such
development must incorporate the area’s African American heritage and
history, the area’s industry, commerce and transportation history, and the
current resident and business communities of Shockoe Bottom and
adjacent neighborhoods.
GRTC’s Cary Street Property
The GRTC site is a 6.8 acre site located at Robinson and Cary Street in
the Fan District. For over 100 years, the property has housed the
operations and maintenance facilities for the Greater Richmond Transit
Authority (and predecessor entities). The property consists of seven
buildings totaling approximately 118,000 square feet, all of which are
historic in nature. The property’s location is strategic because it is in
close proximity to the Downtown Expressway. It’s location on Cary Street
is just due east of the Carytown shopping district and on the outskirts of
the Fan District, one of the most desirable historic housing districts in the
region. The size, location, zoning and nature of the property make it an
ideal candidate for a mixed use development plan, a concept supported
by the City’s Master Plan.
Fulton Gasworks Site & Proximity
The Fulton Gasworks Site is located on Williamsburg Road adjoining the
ongoing Rocketts Landing development. The Gasworks and nearby
RRHA property along Williamsburg Road encompass about 18 acres.
The site is bounded by Williamsburg Road to the north and northeast,
Nicholson Street and private industrial parcels to the south and the CSX
Railroad Trestle to the west. The two properties have known
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environmental contamination from the City’s gas works from 1850-1950.
Additional city-owned parcels are located along East Main Street (on
both sides) including the City Dock and the Lehigh Cement Plant under
option to the City. The City’s Capital Trail is scheduled to follow the river
along the redevelopment parcels. Additionally, this strategy will entail
acquiring approximately 4.58 acres of CSX surplus property, which
divides properties owned by the City and the Housing Authority. In total,
approximately 35 acres are involved.
Revolving Loan Fund (RLF)
As part of the EDA’s Economic Adjustment Assistance Program, EDA’s
regional offices award competitive grants to units of local government,
state governments, institutions of higher education, public or private nonprofit organizations, EDA-approved economic development district
organizations, and Indian Tribes to establish RLFs. EDA’s RLF recipient,
in turn, disburses money from the fund to make loans at interest rates
that are at or below market rate to small businesses or to businesses
that cannot otherwise borrow capital. As the loans are repaid, the
grantee uses a portion of interest earned to pay administrative expenses
and adds remaining principal and interest repayments to the RLF’s
capital base to make new loans. A well-managed RLF award actively
makes loans to eligible businesses and entities, continues to revolve
funds, and does not have a termination date. EDA-funded RLFs in
Virginia include the Cities of Lynchburg, Newport News, Norfolk, as well
as the Crater, Cumberland Plateau, Mount Rogers, and Southside
Planning Commissions. The Virginia Small Business Financing Authority
manages a statewide RLF. The City of Richmond has a Neighborhoods
in Bloom RLF, which is underwritten by the Richmond Economic
Development Corporation.
PROJECT EVALUATION MATRIX
appropriate for EDA or City investment assistance. To prioritize
development opportunities most suitable for EDA and City support, TIP
utilized a project evaluation matrix for scoring each project according to
six criteria listed below.
•
Focus (is the project well defined?)
•
Impact (e.g., well-paying jobs, tax base, private investment)
•
Does it meet EDA priorities?
•
Does it support local considerations? (e.g., political & community
support, links with community development priorities)
•
Market viability (Will the private sector support it?)
•
Schedule (Can it be achieved expeditiously & realistically?)
The project evaluation matrix on the following page lists each site in the
first column and each of the six criteria along the top row. The sites were
scored on a scale of one to five (low to high). The final column provides
the total score for each site. According to TIP’s analysis and scores, the
two highest priority sites/projects for pursuing EDA investment
assistance are the following:
•
Bio Tech Park Expansion
•
Old Armstrong High School
Many of the other sites represent high priority economic development
investment needs for Richmond. Indeed, TIP will propose an area
development strategy for the Manchester area, which received the third
highest score in the matrix. However, TIP feels that the Bio Tech Park
expansion and redevelopment of the Armstrong High School site
represent the development opportunities with the highest potential for
receiving EDA investment assistance.
Many of the areas described above have significant development
potential and offer real economic opportunity. However, not all are
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PROJECT EVALUATION MATRIX
Projects are scored on a scale of 1 to 5 for each criterion.
Focus
Impact
EDA
Local
Market
Schedule
Total
Score
4
3
4
5
4
3
23
25 Street Nine Mile Road (gateway)
2
3
2
5
2
2
16
Port of Richmond, Allegheny Property (mega site)
Industrial Land Near Port
3
3
3
3
3
2
17
Jeff Davis Highway
1
2
3
5
2
1
14
The Boulevard
3
4
2
3
5
2
19
Richmond Technical Center
3
3
3
4
2
2
17
Clover Leaf Mall (gateway, regional cooperation)
1
2
2
3
2
2
12
Biotech Park Expansion
5
4
4
3
4
4
24
Coliseum, Blues Armory, & Festival Park
3
3
1
3
3
3
16
Primary City Gateways
2
4
2
4
3
2
17
Broad Street Corridor
2
3
2
4
4
3
18
Manchester Area and Hull Street
3
4
3
4
4
3
21
Shockoe Bottom (study area)
2
3
2
4
4
3
18
GRTC site along Carey
3
3
2
4
4
2
18
Fulton Gas site & proximity
3
3
3
3
3
2
17
Revolving Loan Fund (EDA –funded Loan Program)
4
3
4
3
3
3
20
Project
Old Armstrong High School
th
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ECONOMIC OPPORTUNITY SITE
STRATEGY
Based on the project evaluation matrix scores, TIP recommends the City
of Richmond pursue EDA investment assistance for the expansion of the
Virginia Biotechnology Research Park and the redevelopment of the
Armstrong High School site. Both projects represent real economic
opportunity locally and regionally. In addition, both will require
participation from other local public and private partners to succeed. The
primary differences between the two opportunities are the level of City
participation and the amount of planning that has already occurred for
each. Below we present development strategies for both opportunities.
VIRGINIA LIFE SCIENCES AND
COMMERCIALIZATION CENTER
The next planned expansion of the Virginia Biotech Park is Biotech Ten.
As envisioned, Biotech Ten will house a Virginia Life Sciences
Commercialization Center (VLSCC) and a Virginia Biosciences
Education and Visitors Center (VBEVC). In addition, the facility will
accommodate administrative offices for the Park itself, expansion space
for the United Network for Organ Sharing (UNOS), and the planned
National Center for Transplant Excellence.
The proposed building will have approximately 85,000-90,000 square
feet of space. It will also include parking for about 190 cars and a visitor
drop-off area to accommodate large vehicles bringing groups to the Park.
According to the park’s master plan, Biotech Ten will be located across
the street from Biotech Seven, on a park-owned parcel bounded by East
Jackson, North 4th, and East Leigh Street. The estimated cost of BioTech
Ten is between $24 and $27 million.
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A core component of Biotech Ten is the VLSCC. Among its existing nine
buildings, the park features an incubator facility and two multi-tenant
buildings. Since its opening, the incubator has successfully graduated 68
start-up life sciences firms. However, the incubator is only designed to
accommodate enterprises requiring 1,200 square feet or less of space.
Moreover, the park’s multi-tenant buildings are specialized for larger
tenants needing 5,000+ square feet under longer lease terms.
Consequently, second-stage companies requiring between 2,500 and
5,000 square feet of space have no options within the park. Indeed,
many would prefer to remain in the park to take advantage of its
concentration of talent, technology, support services, and networks. But
because the Virginia Biotech Park is unique to the region, some
graduating companies may choose to relocate to other metro areas with
similar life science concentrations.
As planned, the VLSCC will occupy 20,000-25,000 square feet on two
floors located over the surface parking at the south end of the structure.
It would be designed to accommodate offices, wet and dry labs, and
some light assembly. The facility is estimated to cost $6-$8 million of the
total cost of Biotech Ten.
Under current plans, Biotech Ten will be developed in two phases. The
phase I portion of the project includes construction of the VBEVC and
expansion space for UNOS. This phase is planned for completion in the
3rd quarter of 2012. The VLCC facilities will be constructed as part of
phase II of the development. The phasing of the project is tied to
available funding and the need to meet the more urgent space needs of
UNOS. While phasing allows the park to develop the facility as funding
allows, it also drives up the total design and construction costs for the
project. Constructing the facility as a whole is less expensive than
building it out in stages.
Therefore, to expedite the development of the VLSCC, TIP recommends
the City of Richmond work with the state and local partners in the park to
pursue an EDA investment grant to fund a portion or all of the costs of
developing the center.
Our recommendation of Biotech Ten as a priority project for Richmond is
based on the following:
•
It is the most well-defined of the potential development
opportunities. The Virginia Biotechnology Research Park has
already completed a concept study for the facility.
•
With sufficient funding, the construction of Biotech Ten could be
completed in two years. Much of the funding will be raised from
private sources, which meets the EDA aim of using public grants
to leverage private capital.
•
The purpose of the VLSCC is to provide flexible space to
maturing firms in the life sciences field. Such enterprises
enhance the global competitiveness of the US and help fuel
innovations in science and healthcare.
•
The commercialization center will also further the park’s mission
of attracting new jobs and investment to an area of Richmond
that suffered economically for years. For example, additional
employment at the park could lead to new investment in housing
and commercial activity in nearby Jackson Ward.
•
The education and visitors center will directly expose the region’s
middle and high school students to the life sciences field and will
provide learning experiences to students and teachers.
Interaction with scientists, researchers, and entrepreneurs may
encourage and inspire Richmond’s children to pursue careers in
life sciences research and business.
•
The commercialization center increases the likelihood of
retaining intellectual property and technology in life sciences.
Research and development at VCU will be well positioned
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remain in Richmond once it is commercialized or transferred to
the private sector.
Next Steps
At present, the Virginia Biotechnology Research Park is proceeding with
plans to develop Biotech Ten. The park is actively seeking to engage an
architectural firm to design the site and building. Private fundraising
efforts are underway as well as a feasibility study for naming rights to the
visitors and education center.
In the near term, the City of Richmond should assist in the project’s
development by working with the park on approving requested zoning
changes to the parcel. This step should occur in the 4th quarter of 2010.
Also in the 4th quarter, City leadership and DECD staff should begin
meeting with representative of the Biotech Park and VCU regarding the
joint pursuit of an EDA investment grant to fund all or a portion of the
commercialization center.
As the owner of the property, the Biotech Park will have the primary role
in overseeing the design, fundraising, financing, construction, and
management of the building. However, the City of Richmond and VCU
can play important roles. VCU should explore how its VCU Tech Transfer
VCU Tech Transfer
VCU Tech Transfer began in 1994 for the purpose of protecting and
commercializing valuable VCU inventions and creations. VCU Tech
Transfer is one office that is made up of 2 different legal entities: the
Office of Technology Transfer (OTT) and the Intellectual Property
Foundation (VCU-IPF). The Office of Technology Transfer resides
within the Office of the Vice President for Research at VCU. The
Intellectual Property Foundation is a not-for-profit foundation that is
responsible for commercializing VCU discoveries.
http://www.research.vcu.edu/ott/index.htm
program can participate in the VLSCC, including programmatically and
physically. In addition to applying for an EDA investment grant, the City
can support the project by assisting with zoning, permitting, and
infrastructure. In addition, Richmond Public Schools can work with the
park to establish formal visitation and experiential learning programs at
the VBEVC.
Finally, to support business and job creation at the Biotech Park and
throughout Richmond, the City and its partners should consider
establishing a revolving loan fund (RLF) focused on small and mediumsized companies in the life sciences field. Access to capital is one of the
greatest challenges fast-growing small businesses face, especially in the
current economic environment. One option for seeding a Richmond life
sciences RLF is to pursue an EDA grant in conjunction with an
application for VLSCC investment assistance. Additionally, private
sources of seed capital could be sought, particularly from the region’s
large healthcare, life sciences, and advanced manufacturing employers.
Summary
The development of the Virginia Biotechnology Research Park has been
a major achievement in establishing Richmond as a center of life
sciences education, research and development, and commerce in the
eastern US. The development of Biotech Ten has the potential to expand
the park’s impact on the city and the region by attracting and retaining
high value jobs and investment as well as inspiring new generations to
pursue careers in one of the nation’s most important fields.
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OLD ARMSTRONG HIGH SCHOOL
One of the City’s highest economic and community development
priorities is the revitalization of the East End. To create a vision for the
area’s revitalization, the City of Richmond joined Bon Secours Virginia
Health System and the Richmond Redevelopment and Housing Authority
to develop an East End Transformation Plan. The project involved the
internationally respected planning firm, Duany Plater-Zyberk & Company,
leading a week-long Charrette consisting of representatives from
neighborhood residential associations, business owners, foundations
and corporations, and students. The goal of the project was to identify
projects that will lead to revitalized housing, educational, and economic
opportunities.
One of the areas key assets discussed during the Charrette was
Armstrong High School. Vacant since 2004, the high school
encompasses 150,000 square feet and sits on 21 acres. Much of the
discussion on Armstrong focused on possible reuses of the existing
facilities. The consensus of the Charrette was to redevelop the property
as a career and technical training center and transform the existing
cafeteria into a commercial kitchen as a business incubator for
neighborhood residents.
However, TIP recommends a more ambitious goal of demolishing the
existing facilities and constructing a new state-of-the-art, LEED certified
career and technical training center focusing on green technologies,
healthcare, and other emerging technology fields. The facility could
accommodate education and training needs for adults as well as high
school and middle school students from around the region. The ageing
Richmond Technology Center could be relocated to the site and serve as
an anchor. Other potential partners in the project include J. Sargeant
Reynolds Community College and Bon Secours Richmond Community
Hospital. The City should approach both organizations about locating
education and training programs at a new facility.
This concept represents another potential target for EDA investment
assistance, as it incorporates many of the strategic investment priorities
articulated by the Obama Administration and the EDA. It also addresses
some critical needs of the immediate area and of the community.
TIP’s recommendation to redevelop the Armstrong site with a new facility
is based on the following:
•
While the idea is only conceptual, it does involve an existing site
the City controls. There is no need for a lengthy process of
property acquisition and assembly.
•
A new state-of-the-art skills development and education center
has a substantial potential impact on the city. It would offer
existing residents the opportunity to learn about and receive
specialized training in high-demand fields such as green
technologies and information technology.
•
EDA is more likely to award investment assistance to projects
involving new construction versus rehabilitation.
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•
A new facility could incorporate green building technologies and
achieve Leadership in Energy and Environmental Design (LEED)
certification, making it even more attractive for federal support.
•
A state-of-the-art facility has the potential to serve as catalyst
project for the East End and Nine Mile Road Corridor, as it would
attract people from all over the region on a daily basis.
•
Because the facility would benefit employers in the region,
private participation and support may be feasible.
•
Relocating the existing Richmond Technical Center to the site
would obviate the need for costly remodeling and upgrades to
the ageing structure.
•
Bon Secours
Summary
The redevelopment of Armstrong High School into a modern skills
development and education center represents a significant economic
and community development opportunity for Richmond. However, for it to
have the greatest impact on the citizens and businesses of Richmond,
TIP recommends an ambitious redevelopment involving a new facility
constructed with green building technologies and utilizing state-of-the-art
facilities and equipment. Such an approach has greater probability of
helping to revitalize the East End and prepare Richmond’s residents for
the jobs of tomorrow.
Next Steps
•
A feasibility study should be conducted to refine the concept and
demonstrate the legal, physical, environmental, programmatic,
and financial feasibility of the project.
•
Work with Richmond Public Schools to determine the cost and
programmatic impacts of relocating the Richmond Technical
Center.
•
As stated in the East End Transformation Plan, a new
transportation connection from the Armstrong to Nine Mile Road
should be evaluated.
•
Approach Bon Secours, J. Sargeant Reynolds, and other entities
about their potential interest in participating in the project.
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INSTITUTIONAL FRAMEWORK FOR
DEVELOPMENT
The Richmond area is served by three primary economic development
organizations, and a handful of organizations with narrower economic
development missions. In addition to the Department of Economic and
Community Development, both the Greater Richmond Partnership and
the Greater Richmond Chamber of Commerce contribute to the
economic development activities of the city and surrounding counties.
The Economic Development Authority (EDA) has the authority to issue
tax-exempt industrial revenue bonds on behalf of the city. These bonds
can be used to acquire, own, lease, and dispose of properties for the
purpose of promoting industrial, R&D, and commercial developments in
the city. Other economic development organizations in Richmond include
Venture Richmond, the Richmond Economic Development Corporation,
and the Convention and Visitors Bureau.
In addition to the economic development organizations profiled in the
table, there are a number of regional organizations that play an important
role in the economic growth of the city and region. The city’s postsecondary education instutions, including VCU, the University of
Richmond, Virginia Union University, John Tyler Community College,
and J. Sargeant Reynolds Community College are critical partners in
talent development and attraction, entrepreneurship, and marketing.
Advantech and the Virginia Biotechnology and Research Park promote
new
business
formation
and
development,
technology
commercialization, and research and development. Finally, the
Richmond Regional Planning District Commission and the Richmond
Area Metropolitan Planning Organization play important roles in regional
planning, resources development, and infrastructure development.
RICHMOND ECONOMIC DEVELOPMENT ORGANIZATIONS
ORGANIZATION
City of Richmond, Department of
Economic and Community
Development
Greater Richmond Partnership
Greater Richmond Chamber of
Commerce
Richmond Economic Development
Corporation
Richmond Economic Development
Authority
Metropolitan Business League
Venture Richmond
Historic Richmond Foundation
Richmond Convention & Visitors
Bureau
Greater Richmond Technology
Council
PURPOSE/FUNCTION
Markets the city to businesses and developers,
promotes industrial facilities and commercial
development, business retention, works with
minority and disadvantaged businesses.
Represents the City of Richmond and surrounding
counties. Involved in business recruitment,
marketing and site location assistance for
businesses interested in locating in the Richmond
region. Compiles data and research on Greater
Richmond area.
Engages in business advocacy, networking, quality
of life, small business support, and international
businesses development activities.
Supports micro-enterprise initiatives in the city, with
special emphasis on serving businesses located in
the city’s three enterprise zones.
Issues tax-exempt bonds on behalf of the City of
Richmond, acquires, owns, leases, and disposes of
industrial/commercial properties, runs the
Advantech Incubator Program.
Promotes minority entrepreneurship and small
business development, serves as an advocate,
information clearinghouse and resource for
minority-owned businesses.
Attracts businesses and visitors to the downtown.
Works toward the preservation of Richmond
historical sites, buys and sells property, undertakes
restoration projects, carries out educational
programs, and serves as an advocate for historic
preservation in the city.
Promotes the Richmond area as a destination for
leisure, business and convention travel.
Promotes technology-based economic
development in the region.
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PUBLIC INFRASTRUCTURE NEEDS
Richmond’s transportation infrastructure to support economic
development is overall, an asset. The city is intersected by two interstate
highways, providing both north-south and east-west access to major
markets and transportation hubs. It is served by Richmond International
Airport (RIC), a modern airport that hosts eight commercial carriers and
is located 10 minutes from downtown. In 2007, RIC underwent a $280
million renovation and expansion. New facilities at the airport include an
air traffic control tower, a two-level terminal, ticketing and baggage claim
halls, terminal roadway, and restaurants. Richmond is home to two major
freight rail carriers (CSX and Norfolk Southern). AMTRAK also provides
passenger rail service, offering eight northbound and eight southbound
trains every weekday. Located on the James River south of downtown,
the Port of Richmond is a domestic and international multi-modal freight
and distribution center serving waterborne, rail, and truck shippers in
mid-Atlantic states.
Headquartered in Richmond, Dominion Virginia Power is the major
provider of electrical power to the city and the region. Richmond’s
Department of Public Utilities (DPU) operates natural gas, water,
wastewater, storm water, and electric street lighting utilities. DPU serves
more than 500,000 residential and commercial customers in Greater
Richmond.
Despite these advantages, continued improvement and expansion of
infrastructure is critical to the long-term economic growth of Richmond.
Below are some of the more important infrastructure needs related to
supporting industrial and commercial development in the city.
Public Transportation
The GRTC Transit System is the public transportation authority for
Richmond and the surrounding region. GRTC operates a fleet of 186
buses traveling over 40 separate routes within the City of Richmond and
Henrico County. A limitation of the GRTC bus system is the lack of bus
routes to many significant employers and sites in the region, especially in
the surrounding counties. While GRTC is a regional system, only a
portion of Henrico County is served and Hanover and Chesterfield
Counties have no bus service. As a consequence, workplace availability
is a major challenge to Richmond residents without vehicle access. The
situation is particularly difficult for hourly workers needing access to retail
and service jobs outside the city.
To improve regional mobility, the GRTC has been partnering with the
Virginia Department of Rail and Public Transportation (DRPT), and
Richmond Area Metropolitan Planning Organization (RAMPO) to devise
an integrated strategy for investment in a regional transit infrastructure.
The initial focus of this effort is Broad Street Rapid Transit Study. The
Broad Street corridor is one of the most important commercial corridors
in Richmond. The purpose of this study is to identify a package of
improvements that will increase overall mobility and serve existing
patterns of transit-oriented development and redevelopment in the
corridor. Rapid transit improvements being reviewed include Bus Rapid
Transit (BRT), which uses a combination of new routes, stations, and
roadway improvements to provide a faster, more efficient transit service.
One of the major goals of the initiative is to support economic
development along the corridor with the following objectives:
•
Improve transit access to existing and future developments
•
Create connections between transit and centers of employment,
education, residence, shopping, culture, and entertainment
•
Provide opportunities for joint development of transit stations and
facilities
The study is scheduled to be completed in mid 2011. Once completed,
the regional partners plan to submit an application to the US Department
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of Transportation for grant funding in order to begin construction. The
target is to have the rapid transit improvements completed by 2015.
A successful rapid transit system along the Broad Street Corridor has
real economic development potential for Richmond. In addition to
providing opportunities for new commercial and retail development along
Broad Street, it would offer increased mobility for the city’s workforce,
especially those needing efficient access to major retail centers in
Henrico County. Moreover, it would hopefully demonstrate the economic
value of regional public transportation infrastructure to the surrounding
counties.
road construction and improvement projects in Richmond.1 Of these,
three future projects will have a significant impact on commercial and
industrial development in Richmond.
•
For its part, the City of Richmond should continue providing technical
and policy support to the study. It should also actively support efforts at
securing federal funding for the infrastructure improvements and provide
appropriate City resources and management during the construction
phase.
Route 5 Relocation, Phase 1 – This project involves realigning
and widening Route 5, from City Line at Henrico County to the
proposed traffic round-about at Nicholson Street, including tieins. The Route 5 corridor has traditionally served as one of the
most important transportation routes in East Richmond. In recent
years, the corridor has transitioned from low-density residential,
industrial, and rural land uses to mixed-use urban land uses.
Route 5 is emerging as a primary link between downtown
Richmond, the East End, and Henrico County. As a
consequence, traffic delays and safety concerns are growing for
all modes of travel on Route 5.
To address mobility and access issues for commuters using the
Route 5 corridor to reach employment destinations within the
central business district, the City of Richmond, Henrico County,
Virginia Department of Transportation (VDOT), and the
Richmond Regional Planning District Commission (RRPDC)
have begun the process of developing a transportation plan for
the corridor. The study is scheduled to be completed and
construction for Phase 1 initiated in summer 2011.
More broadly, the City along with the GRTC and RAMPO should persist
in encouraging the surrounding counties to embrace a regional approach
to public transportation. In addition, City and regional planning officials
should work to convince the Virginia General Assembly to provide legal
authorization for the formation of a regional transportation authority with
dedicated tax funding. Enhancing labor mobility through expanded public
transportation will benefit both workers and employers throughout the
region.
Improving the transportation infrastructure of Route 5 has
important long-term economic development consequences. It will
provide greater mobility for workers improve mobility and access
downtown Richmond, which in turn will enhance the
development potential of the central business district. It will also
improve the redevelopment potential of the Fulton Gas Works
Capital Road Improvements
The Capital Projects Division is the City department responsible for all
new infrastructure projects in Richmond. The division manages all state
and federally funded road projects within the city. According to its most
recent schedule of upcoming road projects, CPM lists almost 50 planned
CPM Division, Schedule of Upcoming Road Construction Projects, Updated
12/18/2009.
1
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Capital Improvement plan, the City has allocated $2.9 million for
the first phase of the project.
site and will promote new mixed-use developments in East
Richmond.
•
Mayo Bridge Structural Analysis and Feasibility Study – The City
is conducting a structural analysis and feasibility study on both
the Mayo Bridge structures and the Manchester Canal Bridge
structure to determine if the structures will be rehabilitated or
replaced. The historic Mayo Bridge links downtown Richmond
with the Manchester area south of the river. The current structure
was built in 1913 is Richmond's oldest highway bridge across the
James River. Rising just 30 feet above the water line, the Mayo
Bridge is currently Richmond's only bridge subject to flooding.
Large floodgates in Richmond's Flood wall protect the
surrounding areas on each side during James River Flooding.
In addition to handling auto traffic, the study is analyzing what
infrastructure improvements must be made to accommodate
pedestrian and bike traffic. A rehabilitated bridge that provides
access to autos, bikes, and pedestrians would enhance
redevelopment opportunities in the Manchester area, which
holds significant potential to attract new business investment in
such sectors as professional services, creative and media
services, and light industrial. Downtown residents would have
improved pedestrian and biking access to employment
destinations in Manchester and retail businesses on Hull Street.
•
Downtown Traffic Direction Conversion – As part of its
Downtown Master Plan, the City identified converting its one-way
streets to two-way. It is hiring a consultant to analyze how the
conversion can and should be implemented. One-way streets
deter retail and commercial development by making destinations
difficult to access. Making it easier to navigate through the
central business district will help to unlock the commercial and
retail potential of Downtown Richmond. In its FY2010-FY2014
Recreation and Tourism
Investment in recreation and tourism infrastructure yields important
economic development benefits. Such amenities attract both visitors and
new residents to the city. Tourism is one of Richmond’s most important
sectors and injects millions of new dollars into the city. Recreation
infrastructure also makes Richmond more competitive for new talent,
especially the coveted demographic of educated young professionals.
Richmond enjoys one of the best urban trails systems in the nation. The
Richmond Riverfront Phase of the Virginia Capital Trail will be the crown
jewel in the city’s trail system. Once completed, the Canal Walk in
Richmond will be the end point for the 54-mile trail, connecting
Richmond, Williamsburg, and Jamestown. The Richmond Riverfront
phase will link the trail with the canal and the retail and residential areas
located in historic Shockoe Bottom along the James River. The Bell
Island Trail System is another project the City has identified for
improvements. The City should continue supporting and seeking support
for these projects as well as others that will contribute to Richmond’s
quality of place.
Sources of Funding
To fund these and other infrastructure projects, the CPM Division actively
seeks funding from the state and federal government, as well as
recommend expenditures of City resources. Annually, the capital
improvement program provides the City of Richmond with transportation
improvement projects funded through the following sources:
•
Urban Federal Funds
•
Urban State Funds
•
RSTP - Regional Surface Transportation Program
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•
CMAQ - Congestion Mitigation and Air Quality
•
Hazard Elimination Program (Safety)
•
Enhancement Grants
•
Governor's Opportunity Fund
•
FEMA Hazard Mitigation Grants
•
VDOT Revenue Sharing
•
City of Richmond Capital Improvement Program
•
Private Funds
SHORT- AND LONG-TERM RETENTION
STRATEGIES AND ACTIONS
Business retention and expansion (BRE) should be the heart of any
economic development program. A solid BRE program will help the City
of Richmond protect and even grow its existing base of employers. The
recent high-profile losses of Wachovia Securities and Reynolds/Alcoa
highlight the vulnerability Richmond faces in the current economic
environment. The City may not have been able to change the outcome in
either case, but situations will emerge where an active BRE program will
preserve and even expand tax base and jobs in Richmond.
Existing businesses form the backbone of a thriving economy, but they
are often overlooked in a community's enthusiasm to recruit new,
headline-generating businesses. In the context of the private sector, a
business retention program is like the adage that says you must attend
to your existing customers first. If you don’t, you jeopardize your base.
This is especially true in light of current economic conditions, which
mean fewer recruitment prospects and more existing businesses in
distress.
At its simplest, a BRE program helps the economic development
organization arrive at a clear understanding of the businesses already in
the community and helps keep tabs on changes and challenges area
businesses face. The primary functions of a BRE program are threefold:
1. 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;
2. to expand and support growing businesses; and
3. to advocate for local businesses generally, by identifying their
issues and needs.
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The Department of Economic and Community Development (DECD)
address business retention and expansion through its participation in the
Greater Richmond Business First program, the various incentive
programs the City offers to existing businesses, and through the Office of
Minority Business Development. DECD has recently committed to
expanding its BRE resources and activities in an effort to stem the flight
of employment and investment out of the city and to help revitalize
distressed neighborhoods.
Strategies
1.1
Strengthen the City of Richmond’s participation in Business
First Richmond. The Business First program is a regional
business visitation and survey initiative supporting existing
businesses located in Richmond and the counties of Henrico,
Chesterfield, and Hanover. During the 2009-2010 program year,
Business First Greater Richmond reported the following activities
and findings:
•
interviewed 533 companies representing 21,242 existing jobs
•
identified 132 companies planning to add a projected total of
1,388 new jobs
•
identified 101 expanding businesses representing $136 million
in new investment potential
The program also reported a total impact of 258 new jobs, 497
retained jobs, and $137 million in new private investment.
In the city of Richmond, 65 companies were interviewed
representing 2,612 jobs. These interviews were conducted by a
team consisting of professional staff and trained volunteers. As a
result of the team’s efforts, $1.7 million in new investment potential
was generated. DECD intends to bolster these figures by involving
top city officials in visits with large primary employers and by
making a greater effort to market the program to local businesses.
Actions
•
Highlight the Business First program on the DECD webpage.
Currently, there is neither a reference nor a link to the Business
First website.
•
Work with the Greater Richmond Partnership, the Greater
Richmond Chamber of Commerce, and the surrounding counties
to raise the profile of the program within the regional business
community. Highlight specific cases of assistance local businesses
have received as a result of participating in the visitation program.
•
Work with the program partners to decrease the length of the
survey instrument. (See specific recommendations in the
Development Opportunities Analysis report, pages 34-36.)
•
Continue plans to implement a tiered approach to business
visitation, including the use of top city officials (i.e., the mayor,
chief administrative officer, and deputy chief administrative officer)
in visits with large primary employers in the city and having DECD
staff develop industry expertise to focus on certain target sectors.
•
Meet the City’s goal of visiting with 100 companies per program
year.
•
Quickly respond to requests for businesses assistance services. If
the issue is not something City staff can assist with, direct referrals
should be made to other organizations and resources in the area.
•
Follow-up with participating businesses to gather performance
measurement data for the program.
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•
1.2
Maintain and expand the database of existing businesses in
Richmond. As a component of the Business First program, the City
is currently using Executive Pulse client relationship management
(CRM) tool. Any data and information collected during interviews or
during follow-up efforts must be entered into the database. The
City and its Business First partners should also seek to expand the
program database. Additional sources of publicly available
business records include DBA filings, tax records, utility hookups,
and ownership transfers.
Engage in additional activities to support existing businesses
in Richmond. Beyond its participation in the Business First
program, the DECD should pursue other basic business retention
and expansion activities.
Actions
•
•
Promote Existing Small Business Programs and Services. Work
with the Richmond District Office of the SBA, the Metropolitan
Business League, and other relevant organizations in the
community to ensure that existing small business and entrepreneur
services are promoted to local businesses.
Improve capital availability. Access to capital is a critical factor in
small business and entrepreneurial development. Indeed, Greater
Richmond Business First participants reported a shortage of
capital for moderate to high risk companies as a major challenge to
doing business. DECD has existing incentive programs designed
to provide financials loans to companies unable to obtain
traditional bank financing, including the Neighborhoods in Bloom
Revolving Loan Fund. Nevertheless, working with Richmond’s
financial community and other economic development groups to
continually improve access to capital should be a top priority of
DECD. Examples could include the formation of an angel capital
network, as well as encouraging new lending models in
conjunction with banks to meet the technology needs of
businesses. As part of this work, contacts should be established
with the angel and venture capital community regionally and
nationally, as well as with existing small business finance
organizations such as the Richmond Economic Development
Corporation.
Local and National Capital Network Organizations
Dominion Resources GreenTech Incubator
www.domgreentech.com
New Dominion Angels
www.newdominionangels.com
Richmond Venture Forum
http://ventureclub.com
Angel Capital Association
www.angelcapitalassociation.org
Angelsoft
www.angelsoft.net
Venture Capital Association
www.cville-venture.org
•
Provide additional opportunities for local businesses to meet
regularly with DECD and other City staff. This could be
accomplished by holding quarterly business forums or industry
roundtables. Forums could be organized around a specific topic of
interest (such as planning code issues or transportation
infrastructure) or could be used as a moderated discussion about
general concerns. These meetings do not need to be elaborate.
Local restaurants will often donate meeting space in return for the
lunch or dinner traffic. The goal is simply to keep an open line of
communication between employers and public officials.
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•
•
1.3
Support business networking opportunities. In addition to the
forums described above, networking opportunities can be a
valuable part of a BRE program. Hosting a monthly luncheon or
“after hours” event has been a mainstay of chambers and
economic development organizations. Unlike the forums, these
events should be solely designed to facilitate business-to-business
contact. Rather than organizing new events, DECD should focus
on supporting existing events organized by the GRCC and the
GRP.
DECD should provide ongoing evaluation and reporting by
preparing an annual report to the community on progress. This
effort could be tied to the Business First annual report and could
be expanded to additional business retention and expansion efforts
undertaken by the City of Richmond.
Continually improve the City’s building review and permitting
process. The Bureau of Permits and Inspections is the City
department responsible for reviewing and applications and
construction documents for the construction, alterations, and
improvements to all new and existing structures in Richmond.
Other departments involved in reviewing building and construction
permits include Zoning, Planning and Preservation, Land Use
Administration, Architectural Review, Public Works, Public Utilities,
Water Resources, and Code Enforcement.
These departments are working to make the City’s review and
permitting process as fast and efficient as possible. Indeed, efforts
such as fast-track permitting for small businesses and coordinated
inspections has resulted in 67 percent of all permits issued within
five days. Such efforts should be continued and expanded where
possible
Actions
•
Review Existing Regulations. DECD and other City staff should
regularly review development regulations, ordinances, and
approval processes to ensure that the City of Richmond is being
responsive to the small business community. Small business
owners and representatives of relevant groups, such as the
Metropolitan Business League and the GRCC, should be part of
this review.
•
Expand the small business fast-track permitting process to include
larger enterprises. Currently, businesses with no more than 15
employees or with projects involving less than $10,000 qualify for a
fast-track permitting process that is designed to have projects
reviewed and approved within 24 hours. Responsible departments
are exploring the feasibility of expanding this process to include
businesses with no more than 30 employees. City staff should
continue these efforts and even look at ways to fast track larger
projects.
•
Explore the establishment of a “One-Stop Shop.” Many cities have
benefited from a single location for development review, permitting,
and licensing (from the fire marshal to the public works director).
Instead of having various departments at various locations within a
city, a single stop helps expedite development and reduces
bureaucracy, creating a more business friendly environment.
Within the City of Richmond, elements of permitting, zoning, and
public works are located within one office location. The City should
look at bringing representative of additional review agencies to the
same location, including public utilities.
1.4
Have an intervention strategy. Develop a “rapid response”
strategy for dealing with potential layoffs or plant closures. Under
the Federal Worker Adjustment and Retraining Notification Act
(WARN) of 1989, companies with 100 or more employees must
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notify local governments and state workforce organizations about
facility closings or mass layoffs at least 60 days in advance of the
event. However, at this point, it is frequently too late to do
anything. Identify “at-risk” companies early-on and develop an
aggressive intervention strategy. As part of this effort, the
community should identify the tools available to help avert such
actions or ameliorate their impact.
Actions
•
Partner with the Virginia Dislocated Worker Unit and the Capital
Region Workforce Center rapid response teams to provide
assistance to workers facing dislocation.
•
Cultivate relationships with site selectors, developers, and real
estate brokers to ensure prompt reuse of a closed facility by a new
tenant.
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Richmond should look for business expansion opportunities among
current employers seeking to merge operations into an existing
facility. The city’s location relative to Northern Virginia should also
be leveraged in order to attract new investment. Companies based
or operating in the Washington DC metro area, especially those
seeking new sites to house operations of multiple facilities, are
ideal targets.
SHORT-TERM ATTRACTION STRATEGIES
AND ACTIONS
The Great Recession of 2007-2009 marked the grimmest economic
downturn the US has faced since the 1930s. Moreover, the national
economic recovery has been slow and painful. Many sectors, especially
manufacturing and construction, continue to struggle as demand remains
low. Unemployment remains at the highest rate in 30 years. Even
healthier industries such as knowledge-based sectors and professional
services are putting off new hiring and capital investments. In the
Richmond area, there are fewer opportunities to attract new employers
and many existing employers continue facing hardships.
As a consequence, in the short term (0-15 months) DECD must focus its
economic development efforts to the realities of current conditions, while
positioning the community to capitalize on new opportunities. In addition
to basic business retention and expansion efforts outlined above, DECD
should explore opportunities to attract new investment and jobs from
companies already operating locally or in the broader region. It must also
carry out some basic activities to position the city for attracting new
investment in the near term. These include closely coordinating
marketing efforts with GRP, interacting with the regional commercial real
estate community, and redesigning the DECD section of the City’s
website.
Strategies
2.1
Pursue new investment from companies in the Richmond
region and in Northern Virginia seeking to consolidate
facilities. One of the consequences of the Great Recession and its
aftermath is the effort by private employers to preserve cash and
profits by cutting costs – meaning fewer workers and fewer
facilities. Consequently, many companies are moving to
consolidate operations into fewer sites, either existing or new.
Actions
•
Visit with existing businesses in Richmond that operate facilities
outside of the city and determine whether consolidation is a
possibility and offer to assist in relocating outside operations to
Richmond. This activity should be an ongoing function of the
Business First visitation program.
•
Monitor Richmond and Washington DC area news outlets for
reports of consolidation.
•
Conduct economic and business research to determine which
companies are expanding and contracting in terms of employment
and facilities, where satellite facilities are, and how their supply
chains are structured.
•
Build awareness among the corporate base regionally and in
Northern Virginia.
−
Identify key regional publications regionally and in Northern
Virginia and send press releases on recent business
successes in Richmond.
−
Call on executives of Washington DC-based companies to
present the benefits of Richmond as a location for future
expansion or for consolidation of facilities/operations.
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2.2
−
Send targeted mailings touting Richmond as a destination for
consolidated operations.
•
Offer assistance to aggressively market developers’ and land
owners’ properties and buildings to future tenants.
−
Engage new partners for lead referral. Specific candidates
include local and regional construction firms, real estate
brokers, banks and service firms (legal and accounting),
regional industry associations, and area colleges and
universities.
•
Develop and distribute a quarterly e-newsletter to local businesses,
regional public officials, site selectors, real estate developers,
investment prospects, and other key stakeholders. In addition to
communicating achievements and successes in Richmond, each
issue should highlight a different opportunity in the city.
Interact and network with regional commercial real estate and
site selection community. Richmond’s commercial office market
is vital to the city’s economic well being. Consequently, an
important function of DECD’s economic development program will
be persistent communication and networking with the commercial
real estate community in the Richmond region. Brokers, leasing
agents, site location consultants, and developers are a primary
source for new business leads and prospects. They also offer
critical intelligence on trends within the region as well as feedback
on Richmond’s competitive position in the marketplace.
2.3
Ensure that the Greater Richmond Partnership is aggressively
marketing and promoting existing sites in Richmond as part
of its business recruitment efforts. GRP is the lead economic
development marketing organization for the Greater Richmond
region. To a large extent, the City of Richmond relies on GRP to
actively market and promote the city as a location for new business
investment and employment. Richmond is at a competitive
disadvantage relative to the surrounding counties in terms of
availability and costs of Greenfield sites. Nevertheless, DECD
must work with GRP to ensure that available development sites in
Richmond are being aggressively marketed by GRP.
Actions
Actions
•
At least one designated staff person should regularly attend
commercial real estate functions in the region.
•
Build and maintain a database of developers, brokers, and site
consultants in the region.
•
Maintain and update information typically of interest to commercial
and industrial developers on the DECD website.
•
Call on individual brokers, agents, consultants, and developers to
establish/maintain relationships and develop leads.
•
Host tours and events featuring specific assets, such as available
land and buildings or new projects.
•
City officials should meet with GRP leadership and staff to
communicate the City’s concerns and interests regarding new
business investment in Richmond.
•
DECD should closely coordinate with GRP staff on business
recruitment and marketing activities. DECD should also continually
monitor GRP’s online property database to ensure all available city
properties are included and current.
2.4
Redesign the DECD section of the City’s website. One of the
most vital marketing tools an economic development organization
should feature is a professionally designed website. The current
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DECD website lacks many of the functions and tools considered
standard for basic site selection requirements, including a
downloadable community profile and a GIS-linked database of
available properties. The site also lacks the style and design
elements that project Richmond or DECD in a top quality manner.
A redesigned DECD website should include the following basic
components:
−
A consolidated community profile in a printable format. The
DECD site currently provides separate pages offering
information on topics such as education, history,
neighborhoods, shopping, and transportation. These
sections should be combined into a single document so that
site consultants do not have to navigate through several
pages to print basic information.
Ideally, the property database would be linked to the City’s
GIS capabilities.
Actions
•
DECD should organize an internal team to oversee the
development of a new department website and coordinate with the
City’s information technology department.
•
Determine if the site should be designed and built internally by City
staff or by an outside design consultant. If a web design firm is
engaged, upfront design and programming costs would range from
$15,000 to $25,000, depending on the number of tools
incorporated. At a minimum, an outside design professional with
economic development experience should be consulted regarding
specific design, lay-out, and tools.
In addition, the profile should contain information on area
demographics (population, households, age profile,
race/ethnicity
profile,
socio-economics,
educational
attainment). Services such as DemographicsNow, Claritas,
and ESRI are reputable data sources. These companies
provide community profiles that are updated each year and
include 5-year projections. The demographic profile should
be made available with an option to export to a spreadsheet
program.
−
Business climate. A section of the profile should contain
information on Richmond’s workforce, major employers,
target industry profiles, tax rates, utility providers and rates
(if available), transportation access, and available incentives.
−
Available sites. A section of the site should feature
properties that are available in the city. It should be current
and searchable by type of space, price, and square footage.
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LONG-TERM PROGRAMS, TOOLS, AND
ACTIONS
The U.S. manufacturing industry continues a transformation that has
profound effects on the practice of economic development. It is forcing
economic developers to rethink the meaning of a primary job, how to
measure economic impact, and how to design incentives. This is, in large
part, because manufacturing employment continues to decline. Most
American communities have come to accept that it is no longer feasible
to build a successful economic strategy based solely on manufacturing
jobs. In the Richmond region, this shift in strategy is painfully reinforced
by the closures of manufacturing facilities by Reynolds/Alcoa, Pfizer
Manufacturing, and Qimonda.
Manufacturing as a Percent of Total Jobs
History
Forecast
25%
20%
15%
10%
professional services to creative services to life sciences — as well as
the physical space (business parks, office space, etc.) and financial
incentive tools to support those activities. Understanding the role of
innovation, the potential of entrepreneurship, and the importance of
professional services are also important components of a progressive
economic development plan.
Strategies
3.1
Continue diversifying the city’s economic base by pursuing a
target industry strategy emphasizing knowledge-based
industries. The primary purpose of traditional economic
development marketing is to generate interest from companies
with expansion or relocation plans. The Greater Richmond
Partnership is the region’s principal economic development
marketing organization. DECD supports GRP’s marketing and
recruitment efforts by contributing an annual funding allocation to
the partnership and by jointly participating in specific activities. The
city is generally well served GRP’s marketing program and should
continue its support. However, DECD should also take a more
active role in marketing its development opportunities and
generating new investment leads. This includes pursuing the target
industries described in the Target Industry section of the CEDS
and listed in the box on the following page.
5%
2030
2025
2020
2015
2010
2005
2000
1995
1990
1985
1980
1975
1970
0%
Source: Moody’s Analytics
For this reason, the recommended strategies for long-term positioning
consider the full complement of economic activities — ranging from
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Recommended Target Industries
To support DECD’s economic development recruitment efforts, TIP identified target
business and industry sectors. To narrow the initial list of potential target industries,
TIP began with the 10 sectors the Greater Richmond Partnership is pursuing for the
broader region. The goal is identify which of the 10 are most appropriate for recruiting
and locating in the city of Richmond. In addition, TIP proposes two other industries retail and professional services - be considered in the analysis.
We chose potential targets using a combination of quantitative, qualitative, and
strategic approaches. The recommended industries capitalize on existing and
emerging assets in the city, the metro area, and the corridor between Richmond and
Washington DC. These industries were also chosen in light of the current economic
environment and the investment priorities of the federal government. Below are the
recommended target industries for the city, listed in priority order.
Actions
•
Establish a prospect management system. Once a prospective
company expresses interest in Richmond, it should be entered into
a formal prospect management system. DECD is currently
implementing Executive Pulse as its prospect management
system. Use of such a system will help set the prospect’s
expectations and allow the economic development staff to track
the status of future deals quickly and easily. The following work
steps address this task:
−
Process. The first step is formalizing the process by which
prospects can indicate interest, receive information packets,
visit Richmond, and apply for relocation assistance. This
documentation should cover the prospect lifecycle – from lead
generation through prospect evaluation to awarding of
relocation assistance.
−
Intake questionnaire. Post an electronic form on the DECD
web page that prospects can use to request an information
packet, set up a visit and tour, and indicate interest in locating
in Richmond. This questionnaire can also collect information
on the prospect that the organization can use to tailor its
response.
−
Response. Create a standard information packet that is
provided to prospects. Adapt pieces such as suitable sites and
maps as well as workforce availability to respond specifically to
the needs of the prospect. Arrange a visit for the prospect to
tour Richmond and view its primary assets.
Priority target industries for the City of Richmond
•
Corporate headquarters
•
Professional services, especially small and medium sized enterprises
•
Creative & knowledge-based services, a key subset of professional services
•
Information & communication technologies, especially security technologies
•
Finance & insurance
•
Life sciences
•
R&D centers
•
Retail food stores, especially fresh produce markets in underserved
neighborhoods
Business retention as needed, but recruiting will be more competitive in suburbs
•
Advanced manufacturing
•
Clean tech
•
Food processing
•
Logistics
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•
Build awareness among decision-makers in target industries.
−
Develop and maintain a database of companies in each target
industry. DECD should determine if GRP’s target industry
database is sufficient or if other proprietary databases should
be purchased to supplement.
−
Compile and maintain resource information for each target
industry sector. This would include identifying associations for
each industry sector as well as following industry trends by
monitoring trade publications or purchasing industry data and
reports from private sources.
−
Join and become active in trade or industry associations for
the priority target sectors. Economic development staff should
research appropriate organizations and become active
participants in events and meetings, including sponsorships
and advertising. Regional and statewide organizations should
be pursued first to minimize costs.
−
−
Organize and train DECD business development staff to
become an effective “sales force” for Richmond. This may
include assigning specific target industries or geographic
markets to staff members. Staff development should also
include internal or external training sales and business
development skills, including such topics as consultative sales,
client
relationship
management,
prospecting,
lead
management, and proposal development.
DECD should conduct eight call trips/marketing missions per
year (two each quarter) to regions where target industry
concentration is highest. These trips can be conducted
separately or in conjunction with the trade shows or other
events organized by GRP.
3.2
−
As resources allow, implement a direct mail and postcard
campaign to target sector companies. The campaign should
highlight Richmond’s competitive advantages and a highly
visible Web address that directs prospects to a redesigned
DECD website.
−
Include Richmond businesses in business development
efforts. This could include prospect visits, marketing missions,
and prospect hosting activities. The most effective advocates
for doing business in Richmond are the city’s existing
businesses.
−
DECD should track the success of the target industry
campaign using its prospect management system.
Support the development of the Virginia Life Sciences and
Commercialization Center (VLSCC). The next planned
expansion of the Virginia Biotech Park is Biotech Ten. As
envisioned, Biotech Ten will house a Virginia Life Sciences
Commercialization Center (VLSCC) and a Virginia Biosciences
Education and Visitors Center (VBEVC). Of the development
opportunities assessed for the potential of receiving EDA
investment assistance, TIP recommends the development of the
VLSCC within Biotech Ten be given the highest short-term priority
for the following reasons:
•
It is the most well-defined of the potential development
opportunities.
•
With sufficient funding, the construction of Biotech Ten could
be completed in two years.
•
Providing flexible space to maturing firms in the life sciences
field matches with EDA investment priorities and national
strategic priorities.
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•
The commercialization center will further the park’s mission
of attracting new jobs and investment to Richmond.
•
The commercialization center increases the likelihood of
retaining life sciences intellectual property and technology in
Richmond.
At present, the Virginia Biotechnology Research Park is
proceeding with plans to develop Biotech Ten. The park is
actively seeking to engage an architectural firm to design the site
and building. Private fundraising efforts are underway as well as
a feasibility study for naming rights to the visitors and education
center.
Actions
•
The City of Richmond should assist in the project’s development
by working with the park on approving requested zoning changes
to the parcel. This step should occur in the 4th quarter of 2010.
•
City leadership and DECD staff should begin meeting with
representative of the Biotech Park and VCU regarding the joint
pursuit of an EDA investment grant to fund all or a portion of the
commercialization center. This should also occur in the 4th quarter
of 2010.
•
The City should work with the Biotech Park in applying for an EDA
investment grant to fund all or part of the VLSCC. The application
should be made as early as the 4th quarter of 2010.
•
The City should support the project by assisting with zoning,
permitting, and infrastructure.
•
Richmond Public Schools should work with the park to establish
formal visitation and experiential learning programs at the Virginia
Biotechnology Education and Visitors Center.
•
3.3
To support business and job creation at the Biotech Park and
throughout Richmond, the City and its partners should consider
establishing a revolving loan fund (RLF) focused on small and
medium-sized companies in the life sciences field. One option for
seeding a Richmond life sciences RLF is to pursue an EDA grant
in conjunction with an application for VLSCC investment
assistance. Additionally, private sources of seed capital could be
sought, particularly from the region’s large healthcare, life
sciences, and advanced manufacturing employers.
Redevelop the Armstrong High School site into a new stateof-the-art skills development and education center. TIP
proposes the concept of replacing the existing facilities with a new
state-of-the-art, LEED certified facility to house a skills
development and education center focusing on green
technologies, healthcare, and other emerging technology fields.
Such a project would also merit applying for seeking EDA
investment assistance for the following reasons:
•
While the idea is only conceptual, it does involve an existing
site the City controls. There is no need for a lengthy process
of property acquisition and assembly.
•
A new state-of-the-art skills development and education
center would have a substantial potential impact on the city.
•
EDA is more likely to award investment assistance to
projects involving new construction versus rehabilitation.
•
A new facility could incorporate green building technologies
and achieve Leadership in Energy and Environmental
Design (LEED) certification, making it even more attractive
for federal support.
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•
A state-of-the-art facility has the potential to serve as
catalyst project for the East End and Nine Mile Road
Corridor.
•
Because the facility would benefit employers in the region,
private participation and support may be feasible.
•
Relocating the existing Richmond Technical Center to the
site would obviate the need for costly remodeling and
upgrades to the ageing structure.
Actions
•
A feasibility study should be conducted to refine the concept and
demonstrate the legal, physical, environmental, programmatic,
and financial feasibility of the project.
•
Work with Richmond Public Schools to determine the cost and
programmatic impacts of relocating the Richmond Technical
Center.
•
As stated in the East End Transformation Plan, a new
transportation connection from the Armstrong to Nine Mile Road
should be evaluated.
•
Approach Bon Secours, J. Sargeant Reynolds, and other entities
about their potential interest in participating in the project.
•
Explore other sources of federal and state funding. Since the
projects would involve workforce development and education,
the US Department of Labor and the US Department of
Education are potential sources of planning or program funds.
Likewise, EDA brownfield grants could be sought if the site
requires environmental remediation.
•
3.4
Because any Armstrong redevelopment will require some frontend work to refine the concept, conduct the necessary feasibility
analysis, and win support from regional partners, the City should
consider pursuing EDA investment assistance in 2-3 years.
Commit to a long-term (20-year) strategy for redeveloping an
area within the city for light industrial, commercial,
information technology, and R&D activities. In 2001-2002, the
City of Richmond engaged TIP to assist in developing a long-term
economic development strategic plan. A central finding of that plan
was the lack of suitable sites in Richmond to accommodate major
new developments. To address this need, the consulting team
recommended a “Richmond Redevelopment Initiative” involving
the identification and assembly of up to 200 acres for a new
tech/industrial park or corridor. Eight years later, Richmond still
lacks the shovel-ready sites and buildings necessary to compete
with the surrounding counties for new large- and medium-sized
investment prospects.
Therefore, TIP once again recommends the City and its economic
development
partners
pursue
a
long-term
“Richmond
Redevelopment Initiative” to position the city for attracting new
employment opportunities and private investment. This initiative
should become a primary focus for DECD. The primary zoning of
the land will be for light industrial, R&D, information technology,
and commercial uses. The land should form a contiguous park or
corridor suitable for medium and large-size companies to locate
operations. As an element of this corridor, the City should ensure
direct links to the Biotech Park and Advantech to meet the facility
needs of expanding entrepreneurial companies.
The best opportunities for such a redevelopment initiative lie south
of the James River, especially in the Manchester area and along
Commerce Road. The area benefits from rail access; proximity to
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I-95, the Port of Richmond, and the airport; existing infrastructure;
and land that could be made available for development. When this
concept was first conceived, it was suggested that up to 200 acres
could feasibly be assembled for a new tech/industrial park or
corridor.
To coordinate the initiative, a new Richmond Redevelopment
Commission should be created with a specific focus on
redevelopment within the city (see Strategy 3.5 below). In addition,
the involvement of the Economic Development Authority and the
Richmond real estate development community is crucial
components of this strategy.
Beyond
commercial
and
industrial
development,
the
redevelopment project may encompass residential, retail, and
open space development. These elements should occur in later
stages, as the initial focus should be on creating opportunities for
investment and job creation in Richmond by knowledge-based
industries.
Technology-related business parks represent a new interpretation
of the old industrial park concept. Like industrial parks, technologyrelated parks vary tremendously in size, tenant mix, style, and
legal/organizational structure. Although technology parks are often
treated as a uniform category, a distinction should be made
between research parks, which focus on new products or
processes, and technology parks that target a specific set of
existing industries. This recommendation involves the latter
classification. While a research park south of the river is a longerterm possibility, it would require a tremendous amount of
investment and significant collaboration with university or
government research centers. In the initial phase, this approach
would be too ambitious.
Strategy 3.5 presents options for funding and a proposed
implementation plan.
3.5
Establish a new Richmond Redevelopment Commission. The
Richmond Redevelopment Initiative will require the creation of a
new independent commission charged with planning, coordinating,
and administering the project. Though independent, the
commission should work closely with both the City of Richmond
and the Economic Development Authority to ensure the project’s
success. While the City and the EDA have responsibilities to the
larger community, the new development commission should be
entirely focused on the redevelopment initiative.
The commission should be governed by a board of seven
members, who are all local citizens appointed by the mayor and
approved by the city council. To ensure the commission’s
independence, none of the board members should currently be
elected officials or city employees. The board should include one
member of the EDA Board and two members from the local
development community. The board members should serve
staggered terms of periods ranging from one to three years.
To support the commission, at least one staff member within
DECD should initially be assigned to assist the commission in
identifying and cataloguing suitable land. As the land is assembled
for redevelopment, additional DECD staff should be dedicated to
provide marketing assistance.
Long-term funding for the Richmond Redevelopment Commission
and its projects should come from a combination of federal, state,
and private grants; program income earned on asset management;
contracts for services; tax increment financing; City of Richmond
General Fund allocations; and private sector donations and lending
agreements.
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Actions
•
Phase I: assessment and planning. At this stage, the
commission must map out a plan for how it will operate, where it
will operate, and what tools it will have at its disposal. It must
also set out a specific set of goals it intends to achieve.
1. Define the target area – This is the first step to be
undertaken by the commission. The area should be defined
as broadly as reasonable, but in general should be identified
as the area within the city that is suitable for significant
redevelopment. An initial target area for industrial and
commercial development should be designated.
2. Develop a master plan – Once the target area(s) have been
defined, a master plan should be created that addresses the
overall build-out strategy. Beyond industrial and commercial
development, the plan should address retail, residential,
open space, parks, and transportation development in the
area.
3. Establish specific goals for the redevelopment initiative –
The commission should establish a set of measurable
economic development goals for the initiative with target
dates for completion. These goals should include:
−
Expansion of tax base – the number of properties have
been brought back onto the city tax rolls.
−
Employment – the number of jobs have been created
that pay above the median wage in the city.
−
Investment – the dollar amount of new public and
private investment in the target area.
−
Diversification – the proportion of employment that has
been gained in non-public and/or low-wage retail
industries.
−
Exports – The increase in the dollar amount of goods
being produced or enhanced in Richmond and then
exported out of the region.
−
Minority–Owned business targets.
4. Land and building inventory – The preliminary inventory
should consist of vacant property, empty buildings, or
otherwise underutilized buildings and properties.
5. Conditions survey – An inventory of the physical
infrastructure must be performed. The survey should include
water, sewer, gas, electric, flood plain, fire and safety codes,
and telecommunications capacity.
6. Suitability assessment – An analysis of the inventoried
properties to decide the best use of each.
7. Planning and zoning review – An analysis of the current
zoning codes and restrictions in the targeted area.
8. Enterprise zone and other special designations – Review of
the overlays and designations that affect the target area.
These special districts or zones may provide benefits or
advantages to certain types of development.
9. Approval of rights of way, appropriate eminent domain, and
condemnation review – This goal sets out a strategy for
property acquisition. This approach helps bring the
properties into conformity with the development plan, and
includes the methods for acquisition and the process for
public input.
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utilize technology and information in core production,
assembly, processing, research, and design activities.
10. Inventory of financial tools – A non-exhaustive list would
include such tools as EDA assistance and other federal
grants, bonding authority, private donations (including
foundations), tax increment financing, development
agreements (with private developers), city allocations, and
city infrastructure investment.
•
•
Phase II: development. Once the parameters of the
redevelopment initiative and an inventory of the properties and
tools have been established, the actual development portion of
the strategy can begin.
1.
2.
1. Review of land acquisition approach – The commission
should review its land acquisition strategy to assess the best
method for future property development. As the commission
begins assessing additional properties, it must decide on a
long-term approach for developing properties. Two
commonly used approaches include:
The Commission should acquire a showcase building(s) in
the target area. The building (or buildings) can serve as an
accelerator for knowledge-based development in the target
area. The property should ideally include such amenities as:
−
Flexible interior space;
−
IT infrastructure (both for external broadband capacity
and internal “smart building” features);
−
Easy transportation access; and
−
Amenities for workers.
Marketing plan – The Commission should design a
marketing plan to promote the showcase building(s) and
other vacant properties in the target area to companies in
the target industries. The marketing plan should utilize
DECD, the GRP, Venture Richmond, and other partner
organizations in the city. It should emphasize specific
recruitment of target industries.
Industries and businesses targeted for location in the
corridor/park should be knowledge-based industries that
Phase III: This phase includes steps that should be taken to
address development beyond the showcase properties and
laying the foundation for long-term development of Richmond’s
south side.
3.6
−
Master developer strategy – The commission leases or
sells land to the private developer and allows that
party to develop the land according to pre-approved
guidelines. In return, the developer is allowed to
realize the long-term revenue streams.
−
Cooperative City-developer acquisition – A developer
agrees to make an investment in a property in return
for improvements to the existing physical infrastructure
by the City.
Establish a Technology Zone that is linked to the Richmond
Redevelopment Initiative. The City of Richmond does not
currently offer a wide variety of incentives to new businesses
locating in the city, especially companies in knowledge-based
industries. Currently, the only significant business incentive
program in the city is tied to the Enterprise Zone Incentive Loan
Program. New incentives must be developed that attract
knowledge-based industries to the city. Moreover, such incentives
must be linked to the redevelopment project.
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The Commonwealth of Virginia authorizes cities, counties, and
towns, to establish one or more technology zones to attract
targeted industries. Qualified businesses locating in Virginia
Technology Zones may receive local permit and user fee waivers,
local tax incentives, special zoning treatment, or exemption from
ordinances. Once established, these zones are administered by
the governing locality. Currently, there are 24 Technology Zones
in Virginia, but none are located in Richmond.
The City of Richmond should capitalize on this opportunity and
establish a Richmond Technology Zone. In order to take
advantage of all the permitting, zoning, and ordinance incentives,
the City of Richmond should administer the program through the
DECD and in direct conjunction with the proposed Richmond
Redevelopment Commission.
•
3.7
The CAO designates an administrator of the zone.
Consider the use of other incentive tools. The City should
consider using other development related tools to encourage
investment in new or existing buildings/sites in targeted
redevelopment areas.
•
Tax Increment Finance (TIF) districts: TIF districts allow
taxing entities to repay the costs of improvements to a
designated reinvestment zone with the future tax revenues
generated by increasing property values. The tax increment
is derived from the difference in appraised value between
the year in which the reinvestment zone is established (base
year) and each year the reinvestment zone is in existence.
•
Development fee rebates: Richmond may consider rebating
a portion or the entire amount of all city fees charged in the
regulation of land development.
•
Energy efficiency retrofit grants: An emerging tool for
promoting new investment and reinvestment in commercial
and industrial properties is public assistance for energy
efficiency retrofits. Such measures are increasingly
welcomed by the private sector as they help to reduce
energy costs, improve the property market values, and
support individual company efforts to become “greener” and
more environmentally conscious. A new financing tool
allowing local governments to assist with private energy
efficiency retrofits is a Preferred Assessed Clean Energy
(PACE) bond. As described in the text box below, PACE
bonds allows property owners to borrow money from
municipalities to make energy improvements and the loans
are repaid over a number of years via special tax
assessments on the property. As an additional incentive to
promote energy efficiency and conservation, the City could
Actions
•
DECD director should designate a staff member to serve as
point person on this initiative. The designee should contact
Commonwealth regarding guidelines and requirements for
establishing a zone. The designee should also contact
administrators of other zones in Virginia to gather more
background information.
•
The designee should brief the CAO and City Council on the
technology zone law and requirements.
•
Include technology zone in comprehensive plan for Richmond
Redevelopment Zone.
•
City legal staff should draft an ordinance to establish a Richmond
Technology Zone in conjunction with the redevelopment plan.
•
The City Council should adopt the ordinance.
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give special consideration to all LEED certified projects for
various tax and infrastructure cost participation incentives.
Property Assessed Clean Energy “PACE” Bonds
The proceeds of a Property Assessed Clean Energy (PACE) bond are provided to
commercial and residential property owners in the form of a loan to finance energy
retrofits (efficiency measures and small renewable energy systems). The loans are
then repaid by the property owner over 20 years via an annual assessment on their
property tax bill.
PACE bonds can be issued by municipal financing districts or finance companies and
the proceeds can be typically used to retrofit both commercial and residential
properties.
3.8
Promote entrepreneurship and small business development.
DECD and its regional partners should continue to emphasize the
fostering small business development and growth-oriented
entrepreneurship. Fostering entrepreneurship is important for
multiple reasons. In general, small businesses are responsible for
a significant portion of jobs created. Local businesses that have
matured in a community often have much stronger ties to the
region and require less effort to retain. Entrepreneurial enterprises
add to those elements: they contribute to economic vitality through
their creativity and innovation. In other words, they create a center
of gravity for talent and capital. The unique quality of
entrepreneurial ventures rests on the following understanding:
Virginia is one of several states that have passed legislation enabling communities to
create PACE Energy Districts. Nationally, local PACE programs have been
established in Texas, California, Illinois, Colorado, Maryland, New York, and others.
•
Export Oriented: unlike
entrepreneurial companies
immediate region.
pacenow.org
•
Capital Intensive: since these companies are on a growth
trajectory, they require substantial operating and expansion
investment.
•
Technology Driven: even non-technology companies require
a technology infrastructure (broadband, e-commerce
transaction capability, highly skilled workforce).
•
Professional Service Dependent: since most entrepreneurs
have some form of intellectual property (including patents,
specialized equipment or processes), they need easy access
to legal, financial, and marketing services.
rael.berkeley.edu/financing
•
To support business and job creation at the Biotech Park
and throughout Richmond, the City and its partners should
consider establishing a revolving loan fund (RLF) focused on
small and medium-sized companies in the life sciences field.
Access to capital is one of the greatest challenges fastgrowing small businesses face, especially in the current
economic environment. One option for seeding a Richmond
life sciences RLF is to pursue an EDA grant in conjunction
with an application for VLSCC investment assistance.
Additionally, private sources of seed capital could be sought,
particularly from the region’s large healthcare, life sciences,
and advanced manufacturing employers.
many small
seek markets
businesses,
beyond the
While small business development centers are beneficial to the
typical locally-oriented start-up, they are not designed to assist the
specialized needs of entrepreneurs. The facilities, networks, and
support they need fall into a different category. As a consequence,
this recommendation speaks to the assistance DECD and its
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partners should provide in growing an entrepreneurial cluster in
Richmond.
•
Actions
•
•
Assess the existing entrepreneurial programs and services
available in the Richmond region. Work with representatives of
the Richmond District Small Business Administration, Advantech,
the Greater Richmond Chamber of Commerce, J. Sargeant
Reynolds Community College, the VCU School of Business, the
Biotech Park, and other organizations to formally assess the
needs of area entrepreneurs and identify gaps in services and
support that are not being provided.
3.9
Bring the business, workforce training, and education
communities closer together. Many people interviewed as part
of this process suggested there is an opportunity for closer
communication and interaction between Richmond businesses,
workforce training providers, and educators. Facilitating greater
communication and coordination between the private sector and
the education sector will help Richmond develop, attract, and
retain its talent base.
Work with partners to enhance services for entrepreneurs to
augment the city’s entrepreneurial assets.
−
Support the establishment of additional angel investor
networks such as the New Dominion Angels to aid
entrepreneurs in raising seed capital by providing
opportunities for entrepreneurs to present business plans
and financing needs to an audience of local investors.
−
Encourage Richmond District SBA or another organization
to offer entrepreneurship training courses such as
FastTrac or NxLeveL that provide intensive training for
potential entrepreneurs.
−
Support the creation of youth entrepreneurship education
programs in Richmond Public Schools.
−
Encourage the efforts of the Richmond Venture Forum and
other mentor networks to provide “green” entrepreneurs
with
advice
and counseling
from
experienced
entrepreneurs.
Celebrate and support entrepreneurship in the region. DECD
and its partners should engage in a public relations campaign
profiling area entrepreneurs (“success stories”) – current and
past – and informing residents of entrepreneurial activity and
initiatives. This will help foster an entrepreneurial spirit and a
community that values entrepreneurship.
Actions
•
Establish a Richmond Business and Education Task Force. The
primary purpose of the task force should be to initiate an ongoing
mechanism for business, education, and workforce training
leaders to discuss mutual challenges and generate ideas and
solutions. More specifically, the task force should engage the
private sector in local educational issues, identify new
opportunities for business/school partnerships, provide a forum
to match training needs with programs, and provide resources
for improving student performance and educational attainment.
−
The task force should be composed of representatives of
regional educational institutions (K-12 and postsecondary), businesses (small, medium, and large),
economic development, and workforce development.
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−
A well-known and respected business or education leader
should be identified by the core team to chair the task
force.
−
The chair should take the lead in recruiting and
assembling the members of the task force.
−
The task force may consider forming subcommittees to
study and report on specific issues.
Best Practice: HIRE
The HIRE (Higher Income Requires Education) Education Forum is a regional
educational alliance consisting of 22 post-secondary educational institutions in the
greater Louisville, KY region. HIRE is guided by a 20-member advisory council,
which consists of employer representatives focused on higher education in the
community. HIRE’s mission is to provide a forum for regional higher education
institutions to collectively align post-secondary activities and programs with regional
economic development challenges. As a consequence, HIRE strives to form the
foundation of a regionally responsive education and workforce development system.
−
•
Engage educators more directly in economic development.
Access to higher education opportunities is one of Richmond’s
key competitive strengths in attracting new investment and
talent. To fully leverage this asset, DECD and GRP should
explore ways to increase the direct involvement of educational
institutions in economic development activities.
−
Engage in cooperative marketing with area post-secondary
institutions. DECD, GRP, and area higher education
institutions should establish a coordinated marketing
message highlighting the area’s post-secondary education
assets.
−
DECD and GRP should incorporate information regarding
specific academic and training programs at VCU,
Richmond College, Virginia Union, J. Sargeant Reynolds
Community College, and John Tyler Community College in
their economic development marketing materials. Training
and academic programs that support regional economic
development goals should be highlighted.
−
Post-secondary institutions should provide updated
community information, data, and events on their websites
and in their student recruitment materials.
−
Encourage joint participation. The City of Richmond and
education leaders should promote cross-representation on
relevant boards and commissions. DECD staff should
engage with local higher education faculty and staff on a
regular basis.
www.greaterlouisville.com/HIRE
•
Align economic development and area education programs – K12, vocational, adult, and post-secondary. DECD and GRP
should work with regional higher education institutions and
Richmond Public Schools to align vocational education and
professional certification programs with DECD and GRP target
industry recruitment efforts.
−
Expand internship/apprenticeship programs to aid in the
transfer of vocational students to entry-level positions
among existing industrial employers and/or targeted
industries.
Enhance and expand partnerships between regional
school districts and local higher education institutions in
developing career and technical training programs in
targeted industries.
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3.10
Initiate a regional advertising and marketing program that
targets the Greater Richmond Area and Northern Virginia.
One of the most important targets of any marketing effort should
be the people and businesses already in the region. They are the
ones who have already made an investment in the area and on a
daily basis represent Richmond nationally and internationally.
Making sure that existing residents and local business leaders
have a positive image of their community is critical to the
success of any external campaign, as these are the people who
can best tell the Richmond story to the outside world.
Actions
•
Develop and implement a regional marketing effort. This is
designed to promote a positive image of the city of Richmond
among residents and build awareness regarding current
economic and community development initiatives. This effort
should promote a positive image of the city not only to local
residents, but those living throughout the wider RichmondWashington DC corridor.
−
The program may utilize media relations, the Internet,
social media, newspapers, billboard, radio, and magazine
advertising in the Richmond area and in Northern Virginia.
−
DECD and its partners should work with the local media,
including both print and broadcast media, to promote
positive stories about the city. Something as simple as
highlighting local business achievements or including
human interest stories can help create a positive image of
the community for local residents.
−
Develop a “speakers bureau” of professionals that are
available to speak at community meetings and promote
local initiatives.
−
•
The regional campaign should emphasize Richmond’s
transportation assets, housing stock, urban quality of life,
and historical charm.
Influence the image of Richmond portrayed on the web.
−
Assume ownership of Richmond’s entry on Wikipedia.
Regularly update the information and data with references.
Wikipedia is fast becoming the first resource individuals
consult for information on communities and regions.
−
Establish a new Facebook page for DECD. Join other
Richmond-related Facebook groups to influence content.
−
Create a Twitter account to update and inform regional
residents and businesses of new announcements,
upcoming events, and salient issues.
−
Create a blog section on a redesigned DECD website to
provide content and connect to other sites.
−
Coordinate social media strategies with other
organizations in the city such as the Venture Richmond
and the CVB.
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IMPLEMENTATION MATRIX
The following guide combines all the goals, strategies, and actions in a single table. It also includes potential partners and allies as well as a
recommended time horizon for implementation. The purpose of the implementation matrix is to provide a graphic representation when the actions should
realistically be implemented and the most appropriate organizations to carry them out.
STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
SHORT- AND LONG-TERM RETENTION STRATEGIES AND ACTIONS
1.1 Strengthen the City of Richmond’s participation in Business First Richmond.
Highlight the Business First program on the DECD webpage.
DECD
Raise the profile of Business First within the regional business
community.
DECD, GRP,
GRCC
Decrease the length of the survey instrument.
DECD &
Business First
partners
Continue plans to implement a tiered approach to business visitation.
DECD & City
administration
Meet the goal of visiting with 100 companies per program year.
DECD & City
administration
Quickly respond to requests for businesses assistance services.
DECD
Maintain and expand the database of existing businesses in Richmond.
DECD &
Business First
partners
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
1.2 Engage in additional activities to support existing businesses in Richmond.
Promote Existing Small Business Programs and Services.
SBA, MBL
Improve capital availability.
DECD, investor
networks, lending
institutions
Provide additional opportunities for local businesses to meet regularly with
DECD and other City staff.
DECD
Support business networking opportunities.
DECD, other
business orgs
Provide ongoing evaluation and reporting by preparing an annual report to
the community on progress.
DECD
Private capital
1.3 Continually improve the City’s building review and permitting process.
Review Existing Regulations.
City staff, other
business orgs
Expand the small business fast-track permitting process to include larger
enterprises.
City staff
Explore the establishment of a “One-Stop Shop.”
City staff
1.4 Have an intervention strategy.
Provide assistance to workers facing dislocation.
VDWU, CRWC
Cultivate relationships with site selectors, developers, and real estate
brokers to ensure prompt reuse of a closed facility by a new tenant.
DECD
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
SHORT-TERM ATTRACTION STRATEGIES AND ACTIONS
2.1 Pursue new investment from companies in the Richmond region and in Northern Virginia seeking to consolidate facilities.
Visit with existing businesses in Richmond that operate facilities outside of
the city and determine whether consolidation is a possibility and offer to
assist in relocating outside operations to Richmond.
DECD
Monitor Richmond and Washington DC area news outlets for reports of
consolidation.
DECD
Conduct economic and business research to determine which companies
are expanding and contracting in terms of employment and facilities,
where satellite facilities are, and how their supply chains are structured.
DECD
Identify key regional publications regionally and in Northern Virginia and
send press releases on recent business successes in Richmond.
DECD
Call on executives of Washington DC-based companies to present the
benefits of Richmond as a location for future expansion or for
consolidation of facilities/operations.
DECD
Send targeted mailings touting Richmond as a destination for
consolidated operations.
DECD
Engage new partners for lead referral.
DECD
2.2 Interact and network with regional commercial real estate and site selection community.
At least one designated staff person should regularly attend commercial
real estate functions in the region.
DECD
Build and maintain a database of developers, brokers, and site
consultants in the region.
DECD
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
Maintain and update information typically of interest to commercial and
industrial developers on the DECD website.
DECD
Call on individual brokers, agents, consultants, and developers to
establish/maintain relationships and develop leads.
DECD
Host tours and events featuring specific assets, such as available land
and buildings or new projects.
DECD
Offer assistance to aggressively market developers’ and land owners’
properties and buildings to future tenants.
DECD
Develop and distribute a quarterly e-newsletter.
DECD
Property owners
2.3 Ensure that the Greater Richmond Partnership is aggressively marketing and promoting existing sites in Richmond as part of its business recruitment efforts.
Meet with GRP leadership and staff to communicate the City’s concerns
and interests regarding new business investment in Richmond.
City officials
DECD should closely coordinate with GRP staff on business recruitment
and marketing activities.
DECD, GRP
2.4
Redesign the DECD section of the City’s website.
Organize an internal team to oversee the development of a new
department website and coordinate with the City’s information technology
department.
DECD
Determine if the site should be designed and built internally by City staff
or by an outside design consultant.
DECD
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
LONG-TERM PROGRAMS, TOOLS, AND ACTIONS
3.1 Continue diversifying the city’s economic base by pursuing a target industry strategy emphasizing knowledge-based industries.
Establish a prospect management system.
DECD
Develop and maintain a database of companies in each target industry.
DECD
Compile and maintain resource information for each target industry
sector.
DECD
Join and become active in trade or industry associations for the priority
target sectors.
DECD
Organize and train DECD business development staff to become an
effective “sales force” for Richmond.
DECD
Conduct eight call trips/marketing missions per year (two each quarter) to
regions where target industry concentration is highest.
DECD, GRP
Implement a direct mail and postcard campaign to target sector
companies.
DECD
Include Richmond businesses in business development efforts.
DECD
Track the success of the target industry campaign using its prospect
management system.
DECD
3.2 Support the development of the Virginia Life Sciences and Commercialization Center (VLSCC).
Assist in the project’s development by working with the park on approving
requested zoning changes to the parcel.
City departments
Begin meeting with representative of the Biotech Park and VCU regarding
the joint pursuit of an EDA investment grant to fund all or a portion of the
DECD & City
Administration
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
commercialization center.
Work with the Biotech Park in applying for an EDA investment grant to
fund all or part of the VLSCC.
DECD
Support the project by assisting with zoning, permitting, and infrastructure.
City departments
Work with the park to establish formal visitation and experiential learning
programs at the Virginia Biotechnology Education and Visitors Center.
Richmond Public
Schools
Consider establishing a revolving loan fund (RLF) focused on small and
medium-sized companies in the life sciences field.
DECD, VBRP
3.3 Redevelop the Armstrong High School site into a new state-of-the-art skills development and education center.
A feasibility study should be conducted to refine the concept and
demonstrate the legal, physical, environmental, programmatic, and
financial feasibility of the project.
City departments
Determine the cost and programmatic impacts of relocating the Richmond
Technical Center.
City, RPS
Evaluate a new transportation connection from the Armstrong to Nine Mile
Road.
City departments
Approach Bon Secours, J. Sargeant Reynolds, and other entities about
their potential interest in participating in the project.
City
administration
Explore other sources of federal and state funding.
DECD
Consider pursuing EDA investment assistance.
City
administration
US Dept. of
Labor, US Dept.
of Education,
EDA
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
3.4 Commit to a long-term (20-year) strategy for redeveloping an area within the city for light industrial, commercial, information technology, and R&D activities.
3.5 Establish a new Richmond Redevelopment Commission.
Define the target area.
RRC, DECD, City
administration
Develop a master plan.
RRC, DECD, City
departments
Establish specific goals for the redevelopment initiative.
RRC
Land and building inventory
RRC, DECD
Conditions survey
RRC, DECD, City
departments
Suitability assessment
RRC, DECD, City
departments
Planning and zoning review
RRC, City
departments
Enterprise zone and other special designations
RRC, City
departments
Approval of rights of way, appropriate eminent domain, and condemnation
review
RRC, City
departments
Inventory of financial tools
RRC, DECD, City
departments
Acquire a showcase building(s) in the target area.
RRC
Marketing plan
RRC, DECD,
GRP, VR
►
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
Review of land acquisition approach
RRC
3.6 Establish a Technology Zone that is linked to the Richmond Redevelopment Initiative.
Contact Commonwealth regarding guidelines and requirements for
establishing a zone.
DECD
Brief the CAO and City Council on the technology zone law and
requirements.
DECD
Include technology zone in comprehensive plan for Richmond
Redevelopment Zone.
RRC
Draft an ordinance to establish a Richmond Technology Zone in
conjunction with the redevelopment plan.
City legal staff
Adopt the ordinance.
City Council
Designate an administrator of the zone.
City
administration
3.7 Consider the use of other incentive tools.
Tax Increment Finance (TIF) districts
City
administration
Development fee rebates
City
administration
Energy efficiency retrofit grants
City
administration
Consider establishing a revolving loan fund (RLF) focused on small and
medium-sized companies in the life sciences field.
DECD, City
administration
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
3.8 Promote entrepreneurship and small business development.
Assess the existing entrepreneurial programs and services available in
the Richmond region.
DECD, SBA,
GRCC, VCU,
Advantech,
JSRCC, VBRP
Support the establishment of additional angel investor networks.
DECD, SBA,
GRCC,
Advantech
Offer entrepreneurship training courses such as FastTrac or NxLeveL that
provide intensive training for potential entrepreneurs.
SBA
Support the creation of youth entrepreneurship education programs in
Richmond Public Schools.
RPS, DECD,
SBA, GRCC,
VCU, Advantech,
JSRCC, VBRP
Encourage the efforts of the Richmond Venture Forum and other mentor
networks to provide “green” entrepreneurs with advice and counseling
from experienced entrepreneurs.
DECD, SBA,
GRCC, VCU,
Advantech,
JSRCC, VBRP
Celebrate and support entrepreneurship in the region.
DECD, SBA,
GRCC, VCU,
Advantech,
JSRCC, VBRP
Private capital
3.9 Bring the business, workforce training, and education communities closer together.
Establish a Richmond Business and Education Task Force.
City
administration,
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STRATEGY / ACTION ITEMS
Description
TIMELINE
Implementing
Organization(s)
Other Potential
Funding
Sources
1-6
Months
7-24
Months
Year
3
Years
4&5
On-going
DECD – Department of Economic & Community Development; GRP – Greater Richmond Partnership; GRCC – Greater Richmond Chamber of Commerce; SBA – Small Business
Administration (Richmond Office); MBL – Metropolitan Business League; VDWU – Virginia Dislocated Worker Unit; CRWC – Capital Region Workforce Center; VBRP – Virginia
Biotechnology Research Park; RRC – Richmond Redevelopment Commission (recommended organization); VR – Venture Richmond; VCU – Virginia Commonwealth University; JSRCC –
J., Sargeant Reynolds Community College; VUU – Virginia Union University; UR – University of Richmond
RPS, GRCC,
VCU, JSRCC,
VUU, UR, CRWC
Engage educators more directly in economic development.
DECD, City
administration,
RPS, VCU,
JSRCC, VUU, UR
3.10 Initiate a regional advertising and marketing program that targets the Greater Richmond Area and Northern Virginia.
Develop and implement a regional marketing effort utilizing media
relations, the Internet, social media, newspapers, billboard, radio, and
magazine advertising in the Richmond area and in Northern Virginia.
DECD, GRP,
GRCC, MBL, VR
Work with the local media, including both print and broadcast media, to
promote positive stories about the city.
DECD, GRP,
GRCC, MBL, VR
Develop a “speakers bureau” of professionals that are available to speak
at community meetings and promote local initiatives.
DECD, GRP,
GRCC, MBL, VR
Assume ownership of Richmond’s entry on Wikipedia.
DECD
Establish a new Facebook page for DECD.
DECD
Create a Twitter account to update and inform regional residents and
businesses of new announcements, upcoming events, and salient issues.
DECD
Create a blog section on a redesigned DECD website to provide content
and connect to other sites.
DECD
Coordinate social media strategies with other organizations in the city
such as the Venture Richmond and the CVB.
DECD
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PROGRAM PERFORMANCE MEASURES
An important piece of any strategic plan is developing the metrics by
which the success of the plan’s implementation will be measured and
tracked. The types of performance measures normally established and
used by organizations include:
•
•
•
•
•
Input measures, which identify the amount of resources needed to
provide a particular product or service, including labor, materials,
equipment, and supplies;
Output measures, which represent the amount of products or
services provided, and focus on the level of activity involved in
providing a service or making a product (workload measures are
one of the most common type or output measures);
Efficiency measures, also known as productivity measures, which
reflect the cost of providing products or services, either in terms of
dollars or time;
Quality measures, which reflect the effectiveness in meeting the
expectations of customers and stakeholders in providing a service
or product, and can include reliability, accuracy, courtesy,
competence, responsiveness, and completeness associated with
the product or service provided; and
DECD ECONOMIC DEVELOPMENT PERFORMANCE MEASURES
Agency
Programs
Business &
Project
Development
Target
FY2009
Target
FY2010
Number of Businesses Retained
112
100
100
Number of Businesses Expanded
32
10
15
Number of Businesses Attracted
5
10
15
Number of Prospects
52
80
120
Number of New Jobs Created
448
200
500
$16 million
$12 million
$15 million
Number of RFPs (redevelopment
& infrastructure)
2
3
4
Commercial Corridor
Infrastructure and Redevelopment
Investments
$60 million
$65 million
$70 million
1-10
1-15
1-20
Number of Annual Visitors
25,500
27,500
29,500
Number of New Vendors
10
12
15
Number of Retained Vendors
50
53
55
Number of Jobs Created (EZIL &
CARE)
394
360
400
1,005
285
325
112
12
12
Number of NIBRLF
3
5
5
Number of EZ Incentives
72
75
75
Amount of New Business
Investment
Special
Projects
Division
Return on Investment
17th Street
Farmers
Market
Outcome measures, which reflect the actual results achieved with
a service or a product.
The City of Richmond has established economic development
performance measures for DECD (see table). These measures include
metrics such as “Number of Businesses Retained,” “Number of Jobs
Created,” and “Amount of New Business Investment.” Such measures
are the national standard for economic development performance.
Indeed, in its CEDS requirements, EDA requires that the program
performance measure must include, but are not limited to the following:
Actual
FY2008
Program Measures
Technical Assistance
Neighborhood
Development
Number of CARE Loans &
Rebates
Source: Adopted Fiscal Plan FY2010 & FY2011
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RICHMOND, VIRGINIA
Comprehensive Economic Development Strategy – Program Evaluation Measures
•
Number of jobs created after implementation of the CEDS;
•
Number of private establishments
•
Number and types of investments undertaken in the region;
•
Private non-farm employment
•
Number of jobs retained in the region;
•
Private professional & business services employment
•
Amount of private sector investment in the region after
implementation of the CEDS; and
•
Annual unemployment rate
•
Average annual pay
•
Median household income
•
Poverty rate
•
Annual population estimates
•
Median age
•
Population over age 25 with a bachelor’s degree or higher
•
Population over age 25 with a high school degree or higher
•
Total taxable assessed value of property
•
Sales (1%) tax revenue
•
Changes in the economic environment of the region.
It is the final bullet (changes in the economic environment of the region)
that TIP is proposing DECD measure and track a new set of outcome
measures. Outcome measures are the true indicators of a program’s
effectiveness. They are broadly defined by various authoritative
publications on the subject as “benefits or changes for participants
occurring during or after their involvement with a program.” Successful
outcomes concentrate on changes in the lives of clients. Of course, since
the efforts of DECD are aimed at the entire community and at a variety of
constituencies, those benefits or changes could be aimed at large
numbers of people, at businesses, and at entire communities. If the
department wishes to measure the impact of its efforts in economic
development, various economic indicators should be tracked to measure
the overall economic development of Richmond.
While it is difficult to directly connect the success of the economic
development plan to certain economic statistics at the local level (e.g.,
median household income), tracking such indicators does provide a
general understanding of the relative economic vitality of Richmond.
In addition to the business and project development measures DECD
already tracks (business retained, expanded, and attracted; number of
prospects; number of new jobs created), TIP is proposing the department
measure and track the following economic indicators as a measure of
overall economic vitality in Richmond.2
TIP has developed a graphical dashboard to assist in the tracking and
illustration of these indicators (presented on the following pages). The
value of the dashboard is that it provides a visual presentation of
Richmond’s economic progress and vitality. For each metric, the
dashboard contains the historical trendline, the figure for the most recent
year, and the most recent year performance compared to the low and
high figures. The dashboard is designed so that DECD can easily locate
the original secondary data source and annually update the figures. In
addition, DECD may choose to modify the dashboard by adding or
substituting other indicators.
Some of these indicators the City already reports, including population, median age,
and unemployment rate.
2
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Comprehensive Economic Development Strategy – Program Evaluation Measures
Trendline
(2001-2009)
7,400
7,200
7,000
6,800
6,600
2000
Metric
2009
(Note: Indicators with asterisk are 2008 figures)
Number of Private Establishments
7,035
2002
2004
2006
2008
2010
2012
2014
120,000
Private Non-Farm Employment
115,000
110,000
105,000
2000
34,000
32,000
30,000
28,000
26,000
2000
10%
8%
6%
4%
2%
0%
2000
109,415
2002
2004
2006
2008
2010
2012
2014
Private Professional & Business Services Employment
28,363
2002
2004
2006
2008
2010
2012
2014
Annual Unemployment Rate
9.5%
2002
2004
2006
2008
2010
2012
2014
$55,000
Average Annual Pay
$50,000
$45,000
$40,000
2000
Most Recent Year Performance Compared to Low and High
Figures (2001-2009)
$51,565
2002
2004
2006
2008
2010
2012
2014
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Comprehensive Economic Development Strategy – Program Evaluation Measures
Trendline
(2001-2009)
Metric
2009
(Note: Indicators with asterisk are 2008 figures)
$40,000
Most Recent Year Performance Compared to Low and High
Figures (2001-2009)
Median Household Income*
$35,000
$36,968
$30,000
2000
2002
2004
2006
2008
2010
2012
2014
30%
Poverty Rate*
20%
10%
0%
2000
210,000
205,000
200,000
195,000
190,000
2000
38.0
37.0
36.0
35.0
34.0
2000
33%
33%
32%
32%
31%
31%
2000
25.1%
2002
2004
2006
2008
2010
2012
2014
Annual Population Estimates
204,451
2002
2004
2006
2008
2010
2012
2014
Median Age*
35.4
2002
2004
2006
2008
2010
2012
2014
Population over 25 with a Bachelor's degree or Higher*
32.4%
2002
2004
2006
2008
2010
2012
2014
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Comprehensive Economic Development Strategy – Program Evaluation Measures
Trendline
(2001-2009)
81%
80%
80%
80%
80%
80%
79%
2000
$25.0
$20.0
$15.0
$10.0
$5.0
$0.0
2000
$40.0
$30.0
$20.0
$10.0
$0.0
2000
Metric
2009
(Note: Indicators with asterisk are 2008 figures)
Most Recent Year Performance Compared to Low and High
Figures (2001-2009)
Population over 25 with a High School Degree or Higher*
79.9%
2002
2004
2006
2008
2010
2012
2014
Total Taxable Assessed Value of Property (in billions)
$23.1
2002
2004
2006
2008
2010
2012
2014
Sales Tax Revenue 1% Local (in millions)
$30.9
2002
2004
2006
2008
2010
2012
2014
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APPENDIX A: HISTORICAL & FORECAST ECONOMIC INDICATORS
The following section includes key economic indicators including employment by industry sector, 2004-2015
Key Forecast Assumptions
• The population forecast for all geography levels is provided by Moody's Analytics.
• The U.S. employment growth rates overall and by industry sector are taken from EMSI's 2009 Q3 national forecast. These U.S. rates are applied to QCEW
(ES202) historical data from the BLS. The forecast assumes that all geography levels (city, MSA, and commonwealth) will recover at rates in line with the
U.S.
• The unemployment rate forecast relies on Moody's population forecast by age cohort and assumes that the BLS national forecast of a relatively flat labor
force participation rate. This flat rate is assumed to hold true across the city, MSA, and commonwealth levels.
• Sporadic, suppressed historical industry sector employment data at the city and MSA levels have been estimated by TIP Strategies in order to fill in missing
gaps and to present a comprehensive employment history.
• Finally, it is important to note that the employment forecast is based on place-of-employment data, i.e., where the jobs are located.
unemployment forecast is always based on a household series which represents where people live, not where they work.
In contrast, the
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure A.1: Historical & Forecast Economic Indicators for the City of Richmond, including Employment by Industry Sector, 2004-2015
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Net Chg
2009-2015
197,194
197,586
198,480
199,991
202,002
204,031
206,084
208,257
210,440
212,636
214,840
217,050
+13,019
5.6%
5.3%
4.5%
4.3%
5.9%
11.0%
9.8%
9.0%
8.3%
7.8%
7.7%
7.7%
—
158,370
160,483
161,709
158,597
159,063
150,980
154,531
157,555
160,211
162,595
164,261
165,657
+14,676
Construction
6,875
7,176
7,348
7,483
6,886
5,899
6,098
6,262
6,401
6,521
6,592
6,599
+700
Manufacturing
11,091
10,682
10,096
9,341
9,138
7,792
7,698
7,644
7,616
7,609
7,655
7,631
-161
Wholesale trade
5,320
5,229
5,286
5,198
5,008
4,794
4,872
4,938
4,995
5,045
5,079
5,103
+309
Retail trade
9,202
9,331
9,314
9,313
9,054
8,421
8,540
8,643
8,734
8,818
8,880
8,918
+497
Transportation &
warehousing
3,546
3,167
3,239
3,205
3,328
3,072
3,135
3,188
3,234
3,274
3,302
3,321
+249
Information & media
3,003
3,017
3,390
3,455
2,895
2,664
2,690
2,718
2,748
2,778
2,812
2,834
+170
Finance & insurance
6,782
6,747
7,162
7,383
7,316
7,067
7,269
7,438
7,583
7,712
7,796
7,857
+790
Real estate
2,280
2,234
2,073
1,965
1,951
1,853
1,975
2,076
2,161
2,236
2,282
2,327
+474
Professional &
technical services
9,630
9,822
10,112
10,458
10,795
10,560
10,860
11,116
11,339
11,540
11,679
11,834
+1,273
Corporate & regional
headquarters
9,964
11,424
11,694
10,764
10,853
10,351
10,594
10,801
10,982
11,144
11,255
11,386
+1,035
Administrative
services
9,484
9,547
8,612
8,507
9,056
7,999
8,368
8,684
8,962
9,213
9,391
9,503
+1,504
Educational services
(private)
2,854
2,943
2,825
2,890
2,975
3,027
3,143
3,239
3,321
3,392
3,436
3,493
+466
Healthcare & social
services
14,487
15,306
16,510
15,182
21,726
21,222
21,954
22,579
23,128
23,623
23,971
24,413
+3,190
Accommodation &
food services
8,345
8,539
8,889
9,401
9,138
8,623
8,858
9,055
9,224
9,373
9,470
9,567
+945
Federal government
(civilian & military)
6,593
6,411
6,398
6,072
5,969
5,999
6,094
6,172
6,237
6,293
6,326
6,353
+354
State government
28,526
29,363
29,565
29,323
24,114
24,238
24,621
24,934
25,198
25,426
25,558
25,667
+1,429
Local government (incl.
public education)
11,283
11,223
11,242
11,073
11,141
11,196
11,373
11,518
11,640
11,745
11,806
11,856
+660
9,106
8,321
7,956
7,584
7,721
6,205
6,388
6,554
6,707
6,852
6,971
6,996
+791
Variable
Population
Unemployment rate (%)
Total employment
Miscellaneous
industries*
SOURCES: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics.
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries.
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Figure A.2: Historical & Forecast Economic Indicators for the Richmond MSA, including Employment by Industry Sector, 2004-2015
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Net Chg
2009-2015
1,154,113
1,173,091
1,193,875
1,211,101
1,225,626
1,240,419
1,255,384
1,270,254
1,285,214
1,300,272
1,315,396
1,330,587
+90,168
3.9%
3.7%
3.2%
3.1%
4.3%
8.9%
7.7%
6.8%
6.2%
5.8%
5.8%
6.0%
—
Total employment
577,325
589,349
598,531
607,042
605,585
574,910
588,429
599,945
610,059
619,137
625,481
630,796
+55,885
Construction
40,028
42,446
43,463
44,259
40,727
34,914
36,094
37,062
37,883
38,593
39,015
39,057
+4,143
Manufacturing
46,180
45,155
43,846
42,247
40,745
36,068
35,635
35,383
35,256
35,222
35,435
35,322
-746
Wholesale trade
23,454
23,527
24,649
25,651
25,355
24,098
24,491
24,822
25,108
25,363
25,531
25,652
+1,554
Retail trade
67,472
65,370
68,930
66,963
68,400
65,497
66,423
67,224
67,938
68,588
69,068
69,364
+3,867
Transportation &
warehousing
16,492
16,865
16,866
17,470
17,062
16,139
16,470
16,748
16,990
17,204
17,347
17,448
+1,309
Information & media
11,112
11,037
11,087
11,254
10,274
9,853
9,949
10,054
10,164
10,278
10,404
10,482
+629
Finance & insurance
37,622
37,301
37,823
36,558
34,526
33,354
34,306
35,103
35,791
36,399
36,795
37,084
+3,730
Variable
Population
Unemployment rate (%)
8,336
8,465
8,190
8,127
7,804
7,413
7,901
8,303
8,647
8,946
9,131
9,311
+1,897
Professional &
technical services
28,528
30,978
32,561
33,583
35,237
34,474
35,453
36,286
37,017
37,671
38,126
38,630
+4,156
Corporate & regional
headquarters
20,976
23,967
23,833
24,295
24,756
24,027
24,593
25,073
25,493
25,868
26,127
26,430
+2,403
Administrative
services
34,102
34,836
34,310
35,070
35,830
32,196
33,680
34,950
36,071
37,080
37,796
38,248
+6,052
Educational services
(private)
6,446
6,836
6,709
6,869
7,085
7,208
7,485
7,713
7,908
8,077
8,181
8,317
+1,109
Healthcare & social
services
53,752
56,587
59,366
60,094
69,699
70,402
72,829
74,901
76,725
78,365
79,520
80,985
+10,583
Accommodation &
food services
39,461
40,517
42,044
43,231
43,199
42,410
43,568
44,535
45,368
46,103
46,577
47,057
+4,647
Federal government
(civilian & military)
15,161
14,953
14,938
14,986
15,083
15,161
15,400
15,596
15,761
15,904
15,986
16,055
+894
State government
41,368
42,382
42,765
43,472
38,719
38,917
39,533
40,036
40,460
40,825
41,037
41,212
+2,295
Local government (incl.
public education)
53,230
54,121
55,160
56,052
57,103
57,395
58,302
59,044
59,669
60,209
60,521
60,779
+3,384
Miscellaneous
industries*
33,606
34,007
31,992
36,864
33,982
25,386
26,317
27,112
27,812
28,440
28,883
29,362
+3,977
Real estate
SOURCES: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics.
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries.
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Figure A.3: Historical & Forecast Economic Indicators for the Commonwealth of Virginia, including Employment by Industry Sector, 2004-2015
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Net Chg
2009-2015
7,454,688
7,546,725
7,628,347
7,698,775
7,769,089
7,867,309
7,966,670
8,065,481
8,164,946
8,265,083
8,365,711
8,466,827
+599,518
3.7%
3.5%
3.0%
3.0%
4.0%
7.4%
8.0%
7.1%
6.6%
6.2%
6.3%
6.5%
—
3,495,767
3,578,558
3,635,790
3,672,958
3,665,654
3,559,534
3,643,232
3,714,531
3,777,152
3,833,358
3,872,639
3,905,544
+346,011
Construction
231,353
243,964
249,237
240,247
223,475
193,512
200,054
205,422
209,968
213,908
216,244
216,476
+22,964
Manufacturing
298,807
295,712
288,266
278,749
264,948
246,660
243,702
241,974
241,107
240,878
242,329
241,561
-5,100
Wholesale trade
115,112
117,446
119,517
121,452
119,838
115,390
117,273
118,855
120,228
121,445
122,254
122,830
+7,439
Retail trade
413,385
419,209
424,055
427,556
421,044
397,053
402,665
407,522
411,851
415,790
418,699
420,495
+23,442
Transportation &
warehousing
101,543
105,028
102,543
102,695
101,577
96,309
98,282
99,944
101,386
102,666
103,520
104,121
+7,812
Information & media
100,234
93,292
91,820
90,882
87,626
83,749
84,564
85,450
86,386
87,358
88,426
89,095
+5,346
Finance & insurance
129,637
132,199
134,093
131,926
127,101
123,639
127,169
130,123
132,675
134,928
136,395
137,467
+13,828
57,356
58,923
58,341
58,464
56,857
53,523
57,040
59,947
62,427
64,591
65,921
67,221
+13,698
307,656
329,914
346,628
358,324
374,271
369,637
380,139
389,071
396,903
403,923
408,798
414,203
+44,566
70,178
73,855
74,964
76,511
76,304
75,019
76,785
78,284
79,596
80,769
81,576
82,523
+7,504
199,702
203,623
208,041
212,823
209,006
188,402
197,090
204,522
211,077
216,983
221,177
223,820
+35,418
Educational services
(private)
47,018
49,839
51,825
54,907
56,708
57,274
59,471
61,285
62,832
64,180
65,005
66,087
+8,813
Healthcare & social
services
305,454
315,497
325,311
336,754
357,080
361,295
373,751
384,386
393,745
402,160
408,088
415,607
+54,312
Accommodation &
food services
276,627
285,277
293,021
298,777
301,785
286,532
294,354
300,887
306,518
311,482
314,685
317,925
+31,393
Federal government
(civilian & military)
151,721
151,945
153,743
156,517
159,882
160,349
162,885
164,957
166,704
168,211
169,085
169,805
+9,455
State government
137,136
140,069
143,641
146,266
141,063
140,039
142,254
144,063
145,589
146,905
147,668
148,297
+8,258
Local government (incl.
public education)
347,893
355,375
361,363
367,083
373,789
374,881
380,810
385,653
389,738
393,261
395,304
396,987
+22,105
Miscellaneous
industries*
204,956
207,392
209,382
213,025
213,299
236,270
244,944
252,185
258,424
263,921
267,464
271,026
+34,756
Variable
Population
Unemployment rate (%)
Total employment
Real estate
Professional &
technical services
Corporate & regional
headquarters
Administrative
services
SOURCES: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics.
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries.
Page 130
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Figure A.4: Historical & Forecast Economic Indicators for the United States, Including Employment by Industry Sector, 2004-2015
Variable
Population
Unemployment rate (%)
Total employment
Construction
Manufacturing
Wholesale trade
Retail trade
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Net Chg
2009-2015
292,892,125
295,560,563
298,362,969
301,290,344
304,059,719
307,041,932
310,060,998
313,058,518
316,090,330
319,153,437
322,244,347
325,359,445
+18,317,514
5.5%
5.1%
4.6%
4.6%
5.8%
10.0%
8.2%
7.1%
6.4%
5.8%
5.6%
5.6%
—
129,278,176
131,571,623
133,257,616
135,366,106
134,805,659
128,863,174
131,893,246
134,474,433
136,741,452
138,776,248
140,198,283
141,389,541
+12,526,366
6,916,398
7,269,317
7,573,479
7,562,732
7,124,886
5,989,049
6,191,513
6,357,651
6,498,361
6,620,276
6,692,600
6,699,778
+710,728
14,257,380
14,190,394
14,098,434
13,833,022
13,382,697
12,208,036
12,061,621
11,976,080
11,933,202
11,921,849
11,993,665
11,955,639
-252,397
5,642,537
5,752,802
5,871,216
5,987,206
5,954,915
5,668,656
5,761,131
5,838,875
5,906,308
5,966,120
6,005,822
6,034,123
+365,467
15,060,686
15,256,340
15,298,858
15,509,017
15,307,933
14,495,667
14,700,526
14,877,850
15,035,900
15,179,702
15,285,913
15,351,493
+855,826
Transportation &
warehousing
4,009,165
4,098,553
4,179,262
4,292,445
4,271,969
4,060,694
4,143,917
4,213,954
4,274,763
4,328,751
4,364,740
4,390,068
+329,374
Information & media
3,099,633
3,056,431
3,033,297
3,029,789
2,989,161
2,868,556
2,896,484
2,926,829
2,958,866
2,992,154
3,028,742
3,051,652
+183,096
Finance & insurance
5,813,299
5,912,592
5,999,510
5,992,373
5,857,197
5,684,141
5,846,426
5,982,245
6,099,537
6,203,135
6,270,601
6,319,860
+635,719
Real estate
2,077,487
2,125,259
2,148,013
2,153,608
2,111,179
1,978,038
2,108,037
2,215,473
2,307,115
2,387,082
2,436,246
2,484,270
+506,232
Professional &
technical services
6,768,868
7,055,427
7,367,541
7,635,062
7,816,999
7,669,618
7,887,535
8,072,860
8,235,374
8,381,025
8,482,183
8,594,331
+924,713
Corporate & regional
headquarters
1,696,537
1,743,214
1,782,404
1,839,616
1,895,417
1,846,812
1,890,291
1,927,186
1,959,471
1,988,348
2,008,234
2,031,547
+184,736
Administrative
services
7,829,371
8,071,211
8,247,822
8,385,118
7,992,864
7,055,998
7,381,350
7,659,725
7,905,217
8,126,405
8,283,462
8,382,453
+1,326,455
Educational services
(private)
2,079,232
2,144,340
2,194,123
2,284,556
2,366,800
2,402,754
2,494,933
2,571,049
2,635,919
2,692,479
2,727,107
2,772,484
+369,731
Healthcare & social
services
14,005,731
14,335,141
14,665,700
15,148,606
15,587,303
15,726,268
16,268,480
16,731,370
17,138,733
17,505,055
17,763,082
18,090,354
+2,364,086
Accommodation &
food services
10,614,677
10,871,471
11,069,256
11,373,660
11,417,016
10,842,896
11,138,898
11,386,121
11,599,196
11,787,033
11,908,273
12,030,859
+1,187,962
Federal government
(civilian & military)
2,739,596
2,733,675
2,727,019
2,726,300
2,762,055
2,773,241
2,817,095
2,852,927
2,883,142
2,909,206
2,924,317
2,936,768
+163,528
State government
4,484,997
4,527,514
4,553,918
4,611,395
4,642,650
4,658,738
4,732,409
4,792,602
4,843,360
4,887,145
4,912,529
4,933,446
+274,709
13,563,517
13,699,418
13,646,358
14,016,190
14,212,311
14,275,579
14,501,326
14,685,773
14,841,310
14,975,478
15,053,263
15,117,358
+841,778
8,619,067
8,728,523
8,801,405
8,985,412
9,112,308
8,658,434
9,071,273
9,405,863
9,685,679
9,925,005
10,057,502
10,213,057
+1,554,623
Local government (incl.
public education)
Miscellaneous
industries*
SOURCES: TIP Strategies, U.S. Bureau of Labor Statistics, U.S. Bureau of Economic Analysis, U.S. Census Bureau, EMSI, Moody's Analytics.
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries.
Page 131
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Construction
Manufacturing
Wholesale
Retail
Transportation &
Warehousing
Information &
Media
Finance &
Insurance
Real Estate
Professional
Services
Corporate HQs &
Regional Offices
Administrative
Services
Educational
Services (private)
Healthcare & Social
Services
Accomodation &
Food Services
Government
Miscellaneous &
Unclassified*
All Industry Sectors
Figure A.5: Forecast Net Change in Employment by Occupational Group & Training Level, 2009-2015
Management
+35
-8
+18
+11
+7
+12
+63
+45
+91
+181
+45
+20
+108
+24
+131
+34
+815
Business & financial operations
+20
-5
+12
+5
+5
+9
+177
+23
+156
+187
+56
+9
+44
+3
+253
+29
+982
Computer & mathematical science
+0
-3
+9
+2
+1
+24
+42
+3
+183
+105
+28
+7
+17
+0
+57
+8
+483
Architecture & engineering
+8
-9
+3
+0
+1
+4
+0
+1
+155
+27
+15
+1
+1
+0
+72
+21
+300
Life, physical, & social science
+0
-2
+2
+0
+0
+2
+4
+1
+62
+17
+6
+6
+17
+0
+73
+9
+197
Community & social services
+0
+0
+0
+0
+0
+0
+0
+0
+1
+8
+2
+10
+183
+0
+123
+4
+333
Legal
+0
-0
+0
+0
+0
+0
+7
+2
+101
+12
+4
+0
+1
+0
+61
+1
+189
Education, training, & library
+0
-0
+0
+0
+0
+1
+0
+0
+3
+3
+6
+276
+103
+0
+56
+6
+455
Arts, design, & entertainment
+0
-1
+3
+4
+0
+27
+3
+3
+55
+18
+9
+8
+6
+1
+15
+19
+170
Healthcare (practitioners & technical)
+0
-0
+1
+14
+0
+0
+4
+2
+26
+13
+36
+9
+1,058
+0
+108
+2
+1,273
Healthcare (support)
+0
-0
+0
+2
+0
+0
+0
+1
+12
+4
+19
+1
+639
+1
+37
+2
+717
Protective services
+0
-0
+0
+2
+1
+0
+2
+7
+2
+5
+130
+4
+13
+6
+464
+10
+645
Food preparation & serving
+0
-0
+0
+16
+0
+2
+0
+5
+1
+7
+0
+17
+102
+754
+28
+30
+963
Property maintenance
+4
-1
+1
+4
+2
+1
+2
+35
+6
+6
+309
+20
+88
+50
+64
+23
+613
Personal care & service
+0
-0
+0
+3
+7
+3
+0
+5
+5
+5
+11
+8
+205
+12
+74
+77
+415
Sales & related
+13
-5
+83
+271
+4
+23
+100
+118
+58
+53
+95
+1
+11
+27
+16
+28
+896
Office & administrative support
+68
-15
+73
+85
+72
+37
+384
+107
+305
+304
+335
+50
+524
+35
+445
+94
+2,902
CITY OF RICHMOND
BY OCCUPATIONAL GROUP
Farming, fishing, & forestry
+0
-0
+3
+1
+0
+0
+0
+0
+1
+1
+0
+0
+0
+0
+7
+112
+124
+462
-3
+1
+2
+1
+0
+0
+7
+11
+5
+54
+2
+3
+0
+117
+77
+739
Installation, maintenance, & repair
+53
-8
+20
+25
+14
+17
+2
+74
+12
+24
+37
+5
+25
+8
+97
+89
+494
Production
Transportation & material moving
+10
+25
-84
-15
+17
+64
+14
+37
+3
+129
+4
+4
+0
+0
+3
+32
+19
+9
+17
+33
+135
+171
+1
+10
+21
+22
+6
+17
+42
+105
+54
+64
+260
+707
Construction & extraction
BY TRAINING/EDUCATIONAL LEVEL
Least training Short-term on-the-job training
+74
-37
+103
+350
+119
+30
+179
+183
+149
+161
+814
+113
+850
+745
+469
+284
+4,586 Least training
Moderate-term on-the-job training
+264
-65
+125
+49
+79
+38
+186
+133
+233
+232
+359
+37
+456
+26
+521
+195
+2,868
Long-term on-the-job training
+232
-19
+6
+12
+8
+21
+33
+6
+19
+16
+31
+8
+15
+73
+348
+82
+893
Work experience in a related field
+68
-12
+24
+48
+17
+9
+53
+38
+42
+91
+71
+13
+75
+84
+216
+59
+896
Postsecondary vocational award
+11
-2
+10
+14
+9
+4
+2
+44
+67
+13
+53
+7
+595
+4
+122
+65
+1,018
Associate's degree
+1
-4
+5
+1
+1
+7
+11
+3
+116
+40
+37
+9
+615
+0
+119
+12
+974
Bachelor's degree
+31
-14
+19
+4
+9
+41
+250
+49
+425
+289
+87
+189
+194
+3
+384
+55
+2,016
Degree plus work experience
+16
-6
+17
+10
+4
+18
+69
+17
+121
+171
+45
+27
+92
+8
+130
+31
+769
+1
-0
+0
+1
+1
+1
+3
+1
+18
+10
+3
+35
+143
+1
+81
+6
+303
+1
+1
-0
-0
+0
+0
+1
+6
+1
+1
+1
+1
+1
+3
+1
+1
+13
+70
+3
+10
+1
+3
+28
+1
+13
+142
+1
+1
+10
+43
+1
+1
+73
+282 Most training
+570
-121
+234
+411
+207
+89
+398
+322
+401
+409 +1,204
+158
+1,321
+845 +1,338
+561
+8,346
+80
+50
-18
-21
+38
+37
+63
+23
+27
+15
+19
+62
+67
+325
+85
+68
+225
+647
+144
+482
+161
+139
+29
+280
+1,285
+584
+136
+94
+2,887
+3,444
+700
-161
+309
+497
+249
+170
+790
+474 +1,273 +1,035 +1,504
+466
+3,190
Master's degree
Doctoral degree
Most training First professional degree
No formal training
SUMMARY
Vocational preparation or prior experience
4-year degree or higher
TOTAL NET JOB CHANGE 2009-2015
+88
+12
+457
+648
+945 +2,443
SUMMARY
+791 +14,677
SOURCE: TIP Strategies; U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Census Bureau; EMSI; Moody's Analytics
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries
Page 132
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Comprehensive Economic Development Strategy – Analysis of Local Economy
Construction
Manufacturing
Wholesale
Retail
Transportation &
Warehousing
Information &
Media
Finance &
Insurance
Real Estate
Professional
Services
Corporate HQs &
Regional Offices
Administrative
Services
Educational
Services (private)
Healthcare &
Social Services
Accomodation &
Food Services
Government
Miscellaneous &
Unclassified*
All Industry
Sectors
Figure A.6: (CONTINUED) Forecast Net Change in Employment by Occupational Group & Training Level, 2009-2015
Management
+210
-37
+89
+86
+38
+43
+295
+180
+296
+421
+179
+47
+358
+117
+352
+169
+2,842
Business & financial operations
+121
-23
+60
+38
+25
+34
+836
+91
+511
+434
+223
+20
+145
+16
+680
+144
+3,353
+1
-15
+45
+15
+6
+88
+197
+12
+596
+243
+109
+16
+57
+1
+154
+42
+1,569
+48
-43
+17
+1
+7
+13
+2
+4
+506
+63
+59
+2
+3
+0
+193
+107
+982
Life, physical, & social science
+0
-9
+8
+1
+1
+6
+18
+6
+201
+41
+28
+15
+56
+0
+197
+45
+614
Community & social services
+0
+0
+0
+0
+0
+0
+2
+2
+3
+19
+13
+24
+609
+0
+330
+21
+1,024
Legal
+1
-0
+1
+0
+0
+1
+35
+6
+330
+27
+20
+0
+3
+0
+163
+6
+595
Education, training, & library
+0
-0
+0
+1
+0
+3
+1
+0
+10
+7
+30
+657
+343
+0
+151
+28
+1,232
Arts, design, & entertainment
+0
-5
+14
+28
+1
+101
+13
+13
+179
+41
+39
+19
+21
+6
+40
+97
+608
Healthcare (practitioners & technical)
+2
-1
+4
+113
+1
+0
+19
+6
+85
+31
+141
+22
+3,508
+2
+290
+10
+4,233
Healthcare (support)
+0
-0
+0
+14
+0
+0
+1
+4
+38
+9
+76
+3
+2,119
+3
+99
+9
+2,376
Protective services
+3
-1
+1
+17
+5
+1
+8
+28
+6
+11
+522
+10
+43
+27 +1,248
+48
+1,977
Food preparation & serving
+0
-2
+1
+121
+2
+9
+1
+20
+3
+17
+0
+41
+339 +3,707
+76
+151
+4,485
+25
-5
+7
+31
+9
+3
+9
+141
+21
+14 +1,239
+47
+292
+244
+171
+114
+2,363
+1
-0
+0
+22
+38
+12
+1
+21
+17
+11
+49
+19
+679
+58
+199
+385
+1,512
+80
-22
+416 +2,109
+22
+84
+470
+473
+188
+123
+382
+3
+36
+133
+44
+139
+4,681
+402
-72
+368
+137 +1,810
+429
+995
+704 +1,347
+119
+1,738
+0
-2
+13
+5
+1
+0
+0
+1
+3
+2
+0
+0
+1
+0
+18
+566
+607
+2,730
-13
+6
+14
+7
+1
+1
+28
+34
+12
+221
+4
+11
+2
+315
+387
+3,758
RICHMOND MSA
BY OCCUPATIONAL GROUP
Computer & mathematical science
Architecture & engineering
Property maintenance
Personal care & service
Sales & related
Office & administrative support
Farming, fishing, & forestry
Construction & extraction
+662
+380
+173 +1,197
+471 +10,860
Installation, maintenance, & repair
+310
-37
+101
+195
+72
+63
+8
+295
+41
+56
+151
+13
+81
+40
+262
+449
+2,099
Production
Transportation & material moving
+62
+147
-391
-67
+83
+320
+106
+287
+18
+676
+15
+13
+2
+2
+10
+128
+62
+31
+39
+77
+539
+685
+2
+25
+69
+72
+31
+85
+112
+283
+270
+321
+1,028
+3,084
BY TRAINING/EDUCATIONAL LEVEL
Least training Short-term on-the-job training
-173
+516 +2,724
+626
+110
+843
+732
+483
+369 +3,280
+267
+1,554
-303
+624
+380
+419
+142
+878
+530
+759
+535 +1,446
+87
+1,512
Long-term on-the-job training
+1,370
-87
+32
+94
+45
+78
+157
+24
+64
+38
+123
+19
+50
+362
+935
+412
+3,717
Work experience in a related field
+407
-57
+119
+375
+92
+32
+250
+152
+139
+212
+284
+31
+251
+413
+582
+296
+3,579
Postsecondary vocational award
+66
-11
+52
+110
+48
+13
+12
+174
+219
+31
+213
+16
+1,973
+22
+327
+323
+3,588
Associate's degree
+10
-17
+23
+13
+5
+26
+54
+13
+379
+94
+149
+21
+2,039
+1
+325
+60
+3,195
Bachelor's degree
+186
-66
+98
+37
+48
+197 +1,381
+664
+348
+450
+645
+17 +1,033
+281
+6,651
+96
-30
+84
+84
+23
+67
+326
+67
+397
+394
+180
+66
+305
+38
+349
+158
+2,604
+4
-0
+3
+2
+1
+4
+15
+3
+61
+27
+14
+83
+477
+1
+220
+33
+948
+4
+5
-2
-0
+1
+2
+1
+47
+1
+1
+1
+1
+2
+15
+1
+4
+44
+230
+11
+28
+3
+12
+65
+4
+44
+470
+0
+1
+22
+117
+2
+9
+942 +4,849
+373
+4,379 +4,154 +3,598 +2,815 +34,173
+68
+668
+4,263
+1,941
Degree plus work experience
Master's degree
Doctoral degree
Most training First professional degree
No formal training
SUMMARY
+2,817 +3,662 +1,261 +1,426 +19,384 Least training
+441
Moderate-term on-the-job training
Vocational preparation or prior experience
4-year degree or higher
TOTAL NET JOB CHANGE, 2009-2015
+3,365
+483
+295
+4,143
-563 +1,172 +3,198 +1,090
-85
-98
+194
+188
+498
+171
+145
+74
-746 +1,554 +3,867 +1,309
+154 +1,178
+331 +1,878 +1,286 +1,306
+71
+316
+227 +1,536
+339
+737
+337
+272 +2,113 +1,124
+646
+557
+130 +1,402
+436 +1,234
+57 +1,741
+977 +11,072
+201
+946 Most training
+679 +10,362
+483 +11,350
SUMMARY
+629 +3,730 +1,897 +4,156 +2,403 +6,052 +1,109 +10,583 +4,647 +6,573 +3,977 +55,885
SOURCE: TIP Strategies; U.S. Bureau of Labor Statistics; U.S. Bureau of Economic Analysis; U.S. Census Bureau; EMSI; Moody's Analytics
*NOTE: Miscellaneous & unclassified industries include ag/forestry/fishing/hunting, oil/gas/mining, utilities, arts/entertainment/recreation, personal & other services, unclassified industries
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