ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Spotsylvania S t l i Regional R i l Medical M di l Center C t (SRMC) with ith 126 beds b d andd a wide id range off clinical li i l services i andd programs, SRMC will enhance the quality of life for many people in many ways. One of the more visible will be economic development, where SRMC's long-term impact will be a welcome and steadying influence during tumultuous financial times. Our facility not only will generate 400 well-paying jobs whose payroll approaches $26 million, it also will attract new physicians who are eager to practice medicine in the kind of advanced clinical environment SRMC will offer. SRMC is making a capital investment of $175 million. Mid-Atlantic Vinyl Products manufactures and distributes vinyl fencing products. They added $2 million in new equipment this year. A-T Solutions, a local defense contractor, made a capital investment of $372,800 and will receive up to $29,745 in state funding to hire and train 13 employees through the Virginia Job Investment Program. CVS Distribution received $16,000 in state funding through the Virginia Job Investment Program for employee retraining to coincide with their planned technology upgrades in 2009. Colonial Assembly and Design, another local defense contractor, invested approximately $300,000 to $400,000 in new equipment and hired an additional 5 employees in 2008. Kaeser Compressors is a manufacturer of air compressors. They added an additional 18,000 square feet of office space to the company company’ss existing facility located on Lansdowne Road. Rotondo Precast added 9,936 square feet of new building space to their existing location on Massaponax Church Road. Shockey Precast has invested approximately $1,002,000 $1 002 000 in new equipment to improve their process and increase their competitiveness. In addition, they are currently retraining 100 employees through Virginia Job Investment Program. The company was awarded $40,000 from the state for the retraining which will be done at Germanna Community College, Spotsylvania Campus. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Spice Rack Chocolates began to expand their operation into an international market during 2007. In 2008, after working closely with the Virginia Economic Development Partnership, the company was awarded one of only 20 spots available for Virginia Economic Development Partnership’s (VEDP) “Accessing International Markets” (AIM) Program. Harris Teeter originally leased 11,250 250 sf of warehouse space at Berkeley Commerce Park for a distribution space for a transfer station. station The Company recently expanded their usage to 17,000sf at their current location. An additional 19 jobs were added. Appian Realty Advisors is a commercial real estate company based in Northern Virginia and entered the County in 2007. They located in 1,900sf at Westpark Corporate Center. Mapei Company is a manufacturer of adhesives/sealants, chemical preparations and clay refractories. They are leasing 73,000sf of space in the former Shaw building, located at 9351 Northeast Drive, as a distribution center. They have approximately 50 employees at this facility. Frito-Lay Corporation located in 8,500sf of warehouse in the Rappahannock Industrial Park. The facility will be used as a di t ib ti center. distribution t Computing Technologies, Inc. located in 2,500sf of office space in Lee’s Hill Building 1. The company is a federal government contractor. ITT Technologies is a high-technology high technology engineering and manufacturing company which operates in 20 20,000sf 000sf in Lee’s Lee s Hill Building 1 and added an additional 5,000sf this year. Accuracy International, is a company from the UK that imports and exports high-end sniper and tactical rifles for various government agencies. This company located into 2,000sf of office space at 3410 Shannon Park Dr. Creative Dimensions is an expanding existing business that does high-end woodwork. They relocated from 37,000 sf into the former Motion Control building located at 11700 Shannon Drive on approximately 17 acres and 87,686sf of warehouse space. They plan to hire 25 new employees in addition to the 58 existing employees. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Tru Tech is a Canadian company that purchased Therma Tru Doors and is operating in their current 100,000sf facility in Spotsylvania. The company is also looking at a similar company in South Carolina that they may also purchase and relocate its operations to Spotsylvania. Spotsylvania They will be moving one of their current plants from Canada to Spotsylvania County and start with 30-40 of the existing employees and expanding to 80-100 within 6 months. Fortune Metals recently expanded from 3,000 3 000 sf in the Bowman Center in Spotsylvania and purchased the former 37,000 sf Creative Dimensions building located in the Four Mile Fork Business Park. (Creative Dimensions expanded into an available 89,000 sf existing building in the County (the former Motion Control facility). Fortune Metals is part of the Fortune Group and is one of the largest companies for raw material recycling. The Fortune Group now has over 20 companies in the US, Mexico and China. The company currently l has h 500 employees. l Regency Furniture is renovating the 60,522sf vacant Winn-Dixie store which is slated to open in the summer of 2009. Regency is based in Maryland and this is their first Virginia location. The building has been vacant for several years years. Candlewood Suites located near the I95 interchange at Exit 126 has begun construction on an extended-stay hotel with a fully equipped kitchens in each suite. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Retail Expansion Spotsylvania Courthouse Village – An elegant hometown is underway that will provide to both a commercial and residential streetscape. Recently completed was a 7.5 mile bypass improving traffic ffi flow fl to the h Courthouse, C h new retail il development d l andd tourism i attractions. i Spotsylvania Towne Centre (formerly Spotsylvania Mall) –Route 3 & I-95 Exit 130 - Current mall owners, Ohio-based Cafaro Co. are in the process of completing $80 million renovation and expansion to the Mall and a newly developed open-air open air Lifestyle center center. The Lifestyle Centre, approximately 180,000 sf, has attracted a Residence Inn, The Pub, and Saxon Shoes. Other new retail slated to occupy the Centre in the future includes Muviville Entertainment Complex that will offer a 12-screen theater, bowling alley, restaurant and electronic ggamingg complex. p Southpoint I & II – a mixed use retail/commercial development offering a variety of retail, restaurants, office and professional office space. Cosner Corner 1.5 million sq. ft. retail center located at the cornerstone of Interstate 95, U.S. Route 1, U.S. Route 17 and the new Spotsylvania Parkway is located at Cosner's Corner, featuring Super Target, Best Buy, Kohl's, Marshalls, Ross, PetSmart, Staples, Dick's Sporting Goods, Jo-Ann Fabric & Craft Store and numerous national retailers, banks and a full pallette of restaurants, that premiered in July 2006. The center is bisected by an extension of the Spotsylvania Parkway which will continue through the center to a new bridge that will span Interstate 95 and connect to HCA's new hospital and medical complex. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 BUSINESS, LABOR & EMPLOYMENT The County’s Primary Economic Development Mission is to reduce the number of residents that commute outside the County for employment. Currently this figure is 51% of the existing workforce. In order to accomplish this mission the County has initiated several concepts. First, First the County has designated an area in the southeast portion of the County as the prime location for new employment centers. The Jackson Gateway is located between State Route 608 and the Spotsylvania/Caroline County line. The Gateway Plan has been adopted by the Board and is included in the County’s Comprehensive Plan. Spotsylvania County has established a Technology Zone Program that serves both new and existing qualified businesses and affords tax rebates on Business, Business Professional and Occupational License and Machinery and Tools Tax. Tax The qualified business is also placed in the County’s Targeted Industry Program. There are three designed Technology Zones in the County’s fully-serviced business corridors to encourage growth in Spotsylvania’s high-technology sector. Qualifying businesses, as adopted in the Technology Zone Ordinance, that are located within the designated zones are eligible to receive the benefits and incentives of the Technology Zone Program. The County’s “Targeted Industries” Program is designed to expedite the review and approval of site and building plans involving targeted businesses. Under this program the County works closely with the business or developer to reduce the potential for delays in the process. The Th Department D t t off Economic E i Development D l t continues ti t market to k t the th County C t to t military ilit andd defense d f contractors. t t D i During 2008, three military and defense contractors located within the County added $723,000 in new equipment and 21 additional employees. There is a commitment to the County’s existing businesses through an Existing Business Program. Efforts include an ongoing i local l l visitation i it ti program to t assist i t local l l firms. fi Thi program also This l serves as a liaison li i b t between f d l andd state federal t t government and local businesses, providing information in a variety of areas including funding, government contracting and specialized workforce training. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Recent activity in the markets of defense, technology, government agencies, healthcare and professional business services continues at a strong pace. Spotsylvania County’s first hospital is under construction and will open in May 2010. This has added a definitive boost to the County’s healthcare sector promoting the construction and location of new healthcare facilities and increasing g the demand for q qualityy office space. p The value of commercial building permits increased 12% during the fiscal year from $190 million in FY 2007 to $211 million in FY 2008. During 2008, 2008 74% of all projects came to the County through direct contact with the Department of Economic Development, without the assistance of an outside agency. This figure is up slightly from 72% in 2007. As we move through 2009, our in-house marketing and business and program development activities will be areas that the County will continue to rely heavily upon to remain competitive. According to the U.S. Census Bureau, median household income for 2007 was $74,374. Targeted marketing of the County continues to be an important focus for Spotsylvania. According to information provided by the U.S. Department of Labor between 2007 and 2008, the County experienced an increase of 3.5% in the number of local employees or at employees, at-place place employment, employment from 29,843 29 843 to 30,886. 30 886 The total civilian employed labor force also increased from 63,033 in 2006 to 64,018 in 2007. The average annual salary also increased during the same time period from $34,840 to $35,204. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 The state of the national economy and low consumer confidence had a major impact on unemployment across the country. Spotsylvania County’s unemployment rate remains one of the lowest in the state and well-below the national average. One reason for this has been the County’s success in attracting businesses who tend to not be significantly impacted by changes in the market market. Start-up companies represent privately-owned businesses that do not have a larger corporate or parent company located in a separate area. Between the 1st Quarter 2007 and the 2nd Quarter of 2008, Spotsylvania experienced the greatest growth of new start-up companies in the Fredericksburg area with a total of 281 firms. Spotsylvania County also continues to experience growth in Average Number of businesses within the County. Between the 2nd Quarter of 2006 and the 2nd Quarter of 2008, Spotsylvania saw a 13.8% increase in the Average Number of Establishments. ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Update on Board Approved Economic Development Plan In December of 2005, the Board of Supervisors approved an Economic Development Plan establishing primary goals, objectives and initial strategies for meeting those goals. The primary mission in the Plan is to effect a reduction in the percentage of working adults who commute away from Spotsylvania County. (*) Accomplished strategies include: • Relocation of the Department of Economic Development to the County’s East Campus for daily interaction with the Planning, Zoning and Code Compliance departments. • Funding allocated to increase full-time full time staff to five employees in the Department of Economic Development with one position focused on tourism marketing initiatives. • Development of The Jackson Gateway Plan and Implementation Strategies. • Development and implementation of a formalized existing business visitation program. Strategies in progress: • Examining economic incentives that will provide a long-term benefit to companies rather than cash incentives and how this can be tied more closely to follow the Targeted Industry Program. Lee Hill area, Bowman Center/Route 2 • Established Technology Zones that consist of the Route 11-Lee Corridor and Route 3 Corridor. • Focusing marketing efforts toward defense, technology, government agencies, healthcare and professional sectors. ( )Note: In the past reporting years, (*)Note: years the County County’ss Citizen Survey has been used for measuring the commuting rate, rate presently at 68%. 68% Based on Claritas data, the County's commuter rate in 2007 was 51% with an average commuting time of 39.4 minutes. At 51%, Spotsylvania's commuting rate is less than that of Stafford and Prince William counties, but remains in line with other communities ECONOMIC DEVELOPMENT HIGHLIGHTS Spotsylvania County – June 2009 Despite the economic downturn, Spotsylvania County continues to remain competitive. The groundbreaking for the Spotsylvania Regional Medical Center and expansions of a number of existing businesses have been significant economic boosts for the County. Included is a breakdown of a number of key economic categories with this report. As we move through 2009, these will be areas that we will continue to monitor closely, making adjustments in our marketing strategies, as needed. Military and defense contractors continue to be a focus of the Department’s marketing efforts. In 2008, staff had the opportunity to attend a number of related events, including the Quantico Area Industrial Security Council and the BRAC Workforce Impact Symposium. Staff has also developed close working relationships with organizations i ti such h as the th Quantico/Belvoir Q ti /B l i Regional R i l Business B i Alli Alliance, th Defense the D f S Security it Service S i and d the th Military Affairs Council. In addition, Spotsylvania County was selected to host the quarterly meeting of the Quantico Civilian Military Council in March of 2008. The Department p of Economic Development p will continue to p pursue opportunities pp to work with and support pp our County’s existing businesses. While current economic conditions have caused us to scale back many of our initiatives, more work is being done in-house to help ensure that we do not lose our current momentum. Plans for 2009 include: continue to work closely with VDBA in areas such as business service and employee training, continue to identify opportunities to highlight local businesses and the services they provide and by continuing with the Visitation Program, Program identify additional opportunities to support local businesses and promote continued business expansion. Although the economy will remain a primary concern for most markets in 2009, Spotsylvania County has seen an increase in new prospect activity. While there is no guarantee that this momentum will continue, staff has and will continue to identify and implement new opportunities for the County, ensuring that Spotsylvania will remain a strong contender for business relocation and expansion. The County continues to build upon its strong foundation for business development and reputation as a business-friendly community.
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