2014 – 2018 Comprehensive Economic Development Strategy Gulf oast Economic Development District Made possible in part by a grant from the U.S Economic Development Administration Gulf Coast Economic Development District P.O. Box 22777, Houston, TX 77227-2777 3555 Timmons Lane, Suite 120, Houston, TX 77027 www.gcedd.org GCEDD - Table of Contents Introduction _________________________________________________ 1 CEDS Approach _____________________________________________ 2 CEDS Contents______________________________________________ 3 Regional Overview ____________________________________________ 4 Demographics_______________________________________________ 5 Industry and Occupation Cluster Analysis _________________________ 9 Regional Resources __________________________________________ 14 Economic Development Planning ______________________________ 15 Regional Needs ______________________________________________ 16 SWOT Analysis ____________________________________________ 18 Vision, Mission, Goals, and Strategies ___________________________ 19 Action Plan _________________________________________________ 24 Evaluation Plan _____________________________________________ 25 GCEDD - Comprehensive Economic Development Strategy Introduction The Comprehensive Economic Development Strategy (CEDS) analyzes the regional economy, establishes regional economic goals and strategies, and outlines a plan of action. The CEDS primary focus is to provide a regional economic development framework, but it also provides a vehicle through which federal agencies – namely the Economic Development Administration (EDA) – evaluate requests for grant assistance. Updated every three to five years, the CEDS utilizes an iterative planning process that assures the document will continue to evolve and adapt to the region’s needs. Throughout the document, websites are identified to provide expanded information or source documentation of the information presented. Gulf Coast Economic Development District The Gulf Coast Economic Development District (GCEDD or the “District”) is the federally designated economic development planning body for the 13-county Gulf Coast Planning Region. The District’s primary functions are to (1) coordinate the economic development activities of the planning region, (2) provide technical assistance to economic development organizations of the region, and (3) maintain the region’s eligibility to apply for economic development grants and assistance from the EDA. The GCEDD was incorporated in the State of Texas as a non-profit corporation on June 10, 1988. Organizational work to establish the District was done by H-GAC staff with partial funding through a grant from the EDA. The EDA officially designated the GCEDD as an Economic Development District (EDD) in January 1991, and the District became an IRS 501(c) (3) in 1995. The Houston-Galveston Area Council provides administrative and operational staff support for the District. Their work is directed by the District's Board of Directors, which is composed of 28 representatives from local governments, businesses, economic development organizations, and minority interests. The Board of Directors meets quarterly and the Board's five-person Executive Committee meets monthly. Houston-Galveston Area Council The Houston-Galveston Area Council (H-GAC) is a voluntary association of local governments and local elected officials in the 13-county Upper Gulf Coast region of Texas. H-GAC was organized in 1966 by local elected officials after the passage of state enabling legislation. Currently, H-GAC has 149 member counties, cities, and school districts. The economic development programs of H-GAC are administered by its Community and Environmental Planning Department. H-GAC’s economic development staff coordinate their activities with numerous federal and state agencies, including the EDA, US Department of Agriculture, Small Business Administration, the Texas Department of Commerce, the Texas Department of Figure 1 – 13 County H-GAC Region Source: H-GAC 1 GCEDD - Comprehensive Economic Development Strategy Housing and Community Affairs, and the US Department of Housing and Urban Development. H-GAC staff also provides technical assistance on various community and economic development issues, including planning, data collection, alternative financing, and grant programs. H-GAC also conducts a regional clearinghouse review of major federal and state grant-funded projects under the Texas Review and Comment System. This review is to ensure that projects are consistent with regional plans and policies, are not duplicative of existing programs, and are cost effective. In order to provide a vehicle for long-term economic development planning at the regional level, H-GAC established the Gulf Coast Economic Development District. Our Great Region 2040 In 2010, H-GAC and a consortium of community partners received a $3.75 million Sustainable Communities Regional Planning Grant to develop a regional plan for sustainable development (Our Great Region 2040) for the 13-County region. The planning process is being led by a 24 member Coordinating Committee – consisting of member governments, non-profit organizations, academic institutions, and other partners. The GCEDD was a founding member of the committee and continues to play an active role in plan development. Our Great Region 2040 offers goals and strategies in the areas of economic development, housing, health, environment, resiliency, and transportation. The plan utilized an extensive public and stakeholder-driven process that engaged the general public, committees comprised of local and community and business leaders, and local government officials to develop goals, strategies, and metrics. GCEDD staff participated in public meetings and focus groups across the 13-County region to assess regional economic needs and resources. The GCEDD Board, CEDS Committee, and staff aligned CEDS goals and strategies with the Our Great Region 2040 plan to take advantage of the extensive outreach, coordination, and research. For more information about the Our Great Region 2040 plan, visit www.ourregion.org. CEDS Approach The CEDS utilizes a collaborative and data driven approach in identifying regional needs and resources, outlining regional economic development goals, and establishing guidelines for applying for EDA grant opportunities. The GCEDD began developing this CEDS in early 2012 by establishing a CEDS Committee representing public and private interests within the region. Over the course of one year, the CEDS Committee convened five times to provide feedback on data, draft goals and strategies, draft action plan activities, and presentation of the material. The committee was essential in identifying regional needs and resources, as well as identifying how the District can approach CEDS objectives. Both the feedback from the CEDS Committee and the responsiveness of the GCEDD allows the CEDS to be a tailored document that addresses the unique challenges of the HoustonGalveston region. The CEDS Committee is composed of major economic interests within the Region, representing for-profit companies, non-profit organizations, institutions of higher learning, and local governments. Each participant was chosen to represent their professional knowledge base as well as contribute a more comprehensive perspective to the components of economic development. The CEDS Committee members provide leadership, facilitate communication with the larger GCEDD Board, and engage other agencies and groups as needed. 2 GCEDD - Comprehensive Economic Development Strategy GCEDD staff worked with the CEDS Committee to analyze economic data and develop goals and strategies based on extensive outreach efforts throughout the region. GCEDD and H-GAC staff participated in 17 focus groups in the region where elected officials, local government representatives, and private interests provided input on the economic strengths, needs, and opportunities facing the Houston-Galveston region. This input was used by the District and CEDS committee to prioritize and refine goals and strategies. For additional information on the focus groups and regional survey results, consult the Our Great Region 2040 Community Engagement Report located at Our Great Region 2040 Supporting Documents. After the goals and strategies were adopted by the District, GCEDD and H-GAC staff used a series of open house meetings to collect public feedback and finalize CEDS objectives. The GCEDD and CEDS Committee capitalized integrated the outreach efforts of H-GAC’s Our Great Region 2040 Plan to reach a broader range of public and private interests in order to foster goals and strategies that are more holistic in nature – taking into account the complexity of economic development initiatives. CEDS Contents In accordance with EDA requirements, the CEDS provides a framework for regional economic development planning and the evaluation of EDA grant applications. This document also supplies socioeconomic data and economic development information for the region. The CEDS is organized in the following sections: Regional Overview This section includes an analysis of the current demographic and socioeconomic conditions, trends, and issues that will affect the regional economy. The section also includes a Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis. Regional Resources This section includes an examination of existing regional financial and economic resources, as well as a list of major projects. Regional Needs This section identifies regional needs and includes a SWOT Analysis – Strengths, Weaknesses, Opportunities and Threats. 3 GCEDD - Comprehensive Economic Development Strategy Vision, Mission, Goals, and Strategies This section introduces the Vision, Mission, Goals, and Strategies that outline the region’s broad economic development objectives. Action Plan This section identifies specific actions and programs that address the goals and strategies. Evaluation Plan This section describes the process the District will use to evaluate its action plan and its goals. It includes performance measures to be used as a gauge for evaluating progress and reporting results to the EDA. Regional Overview The GCEDD region boasts a robust economy, diverse population, and natural and man-made assets across distinctive rural, suburban, urban, and coastal communities. The region covers 13 counties, 134 cities, and 12,500 square miles in the Upper Gulf Coast Region of Texas. With a population over 6 million people, the region is home to the fourth largest city and the third largest county in the U.S. Texas as a whole – and the Houston-Galveston region in particular – has experienced a significant amount of population growth over the last decade. This growth is projected to continue, and the region’s population is expected to exceed 8 million by 2040, while adding an additional 2 million jobs. The region contains several distinct ecosystems from the barrier islands of the Gulf of Mexico and the wetlands of Galveston and Matagorda Bay, to riparian areas along the Trinity, Brazos and Colorado Rivers, coastal prairies, cypress swamps, and piney woods. The region is home to the world’s largest medical center, second busiest port in the country, and NASA. As a result, the region has outstanding opportunities in energy, aerospace, and biotechnological research and development. It also has a vibrant small business community, transforming agri-business industry, and strong residential commercial and industrial construction industry. Economically Distressed Areas In order to receive EDA assistance, applicants (and the proposed project) must meet at least one of the following economic distress criteria described in EDA Federal Regulations: • The project area has an unemployment rate that is, for the most recent 24-month period for which the data are available, at least one percentage point greater than the national average unemployment rate; • The project area has per capita income that is for the most recent period for which data are available 80% or less than the national per capita income; or • The project area is determined to be a Special Need by the EDA. 4 GCEDD - Comprehensive Economic Development Strategy As of October 2013, 4 out of 13 counties qualify as an economically distressed area based on per capita income or unemployment measures. Figure 2 shows the following distressed counties – Liberty, Walker, and Wharton Counties had a per capita income that was 80 percent or lower than the national per capita income average and Matagorda County had a 24 month unemployment rate that is two percentage points greater than the national average unemployment rate. Demographic and Socioeconomic Overview The Houston-Galveston region is one of the most racially and ethnically diverse and economically vibrant areas in the country spread across distinct rural, suburban, and urban typologies. A recent analysis Figure 2 - Economically Distressed Counties of the racial and ethnic makeup of Source: H-GAC; www.statsamerica.org; EDA major U.S. cities showed Houston meeting or exceeding the racial and ethnic diversity of other major cities including New York and Los Angeles. The relatively low cost of living and strong economy are major factors in significant demographic changes, the increased demand for a variety of housing options, and the demand for increased access to amenities and services for all residents – regardless of race, religion, national origin, age, or socioeconomic status. The region’s population is growing and changing at an accelerated pace, and within that growth are diversifying needs for new and existing residents with respect to employment, education, housing, and transportation options. Population An overview of the regional population includes historic and present data and a discussion of forecasted growth. Economic growth has significantly impacted and shaped the region’s population and settlement patterns. Between 1970 and 1990, the region’s population grew between 1.5 – 4.0 percent per decade. However, between 1990 and 2000 the region saw significant growth of 25 percent, to a regional total of 4,854,454 people. This trajectory continued into 2010, with the region’s population growing to 6,087,133 – an increase of 25 percent. Between 2000 and 2010, the growth of the region was four percentage points higher than the state as a whole. Harris County, the largest county in the region, contains the City of Houston and had a population of 4.1 million in 2010 – an increase of 20 percent over the 2000 population. 5 GCEDD - Comprehensive Economic Development Strategy Percent Growth by Race/Ethnicity Total Population 2000 Total Population 2010 Percent Growth 20,851,820 25,145,561 21% 4% City of Houston 1,953,631 2,099,451 7% Region 6 Total 4,854,454 6,087,133 25% State of Texas Region 6 Counties: Austin NonHispanic White African American Hispanic Other Minority* Median Income 2010 22% $51,563 24% 42% -11% 1% 26% 9% $44,648 3% 28% 54% 39% $55,842 23,590 28,417 20% 10% 6% 75% 56% $51,340 Brazoria Chambers 241,767 26,031 313,166 35,096 30% 35% 5% 23% 84% 13% 57% 136% 61% 114% $68,008 $75,200 Colorado Fort Bend 20,390 354,452 20,874 585,375 2% 65% -5% 29% -9% 79% 35% 86% -3% 99% $43,273 $84,211 Galveston Harris 250,158 3,400,578 291,309 4,092,459 16% 20% 9% -6% 4% 23% 45% 49% 35% 29% $61,555 $53,160 70,154 37,957 75,643 36,702 8% -3% 0% -13% -9% -13% 78% 18% 56% -14% $48,408 $43,146 293,768 61,758 455,746 67,861 55% 10% 36% 7% 89% 3% 155% 31% 130% 64% $66,422 $38,654 32,663 41,188 43,205 41,280 32% 0% 18% -10% 12% -6% 98% 20% 71% -14% $51,576 $40,988 Liberty Matagorda Montgomery Walker Waller Wharton Figure 3 - GCEDD Region Population Breakdown Source: US Census Bureau Fort Bend County had the highest percentage growth (65 percent) of the region, followed by Montgomery (55 percent). Both counties experienced significant growth in racial and ethnic diversity also. Figure 3 displays the population of all counties in the region. Raw number growth tends to center around the Houston metropolitan area with suburban locations increasing the most, but some of the counties in the rural periphery also experienced significant percentage growth. Median household income varies across the counties, with higher incomes correlating with suburban areas. The GCEDD regional forecast shows steady population growth through 2040, increasing by over 3 million people. H-GAC’s 2040 Regional Forecast model predicts that each year the population will grow by 120,000 to 130,000. The consistent growth can be attributed – in large part – to substantial net migration. The Regional Forecast projects racial and 6 GCEDD - Comprehensive Economic Development Strategy ethnic make-up, with all groups gaining population in absolute terms. By 2040, the share of the Hispanic population is expected to be over 40 percent. The forecasting model also examines household dynamics, with net growth in households projected to be around 55,000 per year. Currently, 40 percent of all households in the Houston-Galveston region are family households with children. Nearly two-thirds of these households are married-couple families with children, and the remainder is single parents. Harris County has the highest proportion of single parents in the region (13 percent of all households). Age The Houston-Galveston region has a slightly lower proportion of seniors than the State of Texas as a whole. Fourteen percent of the non-Hispanic white population is age 65 and over and 5 percent is under the age of five. Among Hispanic or Latino residents in the region, 4 percent are 65 or older and 11 percent are under five. There is a large and growing racial generation gap between the region’s non-Hispanic white elderly population and rapidly increasing minority youth population. The region’s racial generation gap has nearly doubled since 1980, with the median age of the Latino population at 26 and the nonHispanic white population at 40. Based on median ages the City of Houston is younger than Texas as a whole; however, the proportion of the population that is seniors is higher in Houston for both nonHispanic whites and African Americans than in the state or region as whole. Colorado County has the oldest population in the region with 19 percent of residents over the age of 65 and a median age of 44. Across all counties, the generational gap is considerable, with the non-Hispanic white population having a higher proportion of seniors than the Hispanic or Latino population. Poverty The poverty rate in the GCEDD region (15 percent) is slightly lower than in Texas as a whole (17 percent). 24 percent of children under five and 11 percent of seniors in the Houston-Galveston region are living in poverty. In the region as a whole, the poverty rate is 22 percent both for African American and Hispanic or Latino residents and only 7 percent for non-Hispanic whites. In the Houston-Galveston region, there are 67 Census tracts (6 percent of all Census tracts) with poverty rates exceeding 40 percent. These high poverty Census tracts are mostly located in Houston or within close proximity to the city. The typical lower-income household lives in a Census tract in which 41 percent of households are lowerincome, 42 percent are middle-income and 17 percent are upper-income. Education H-GAC’s Existing Conditions Report provides a brief examination of education data in the region. The region’s population has a college completion rate of 28 percent which is behind peer regions such as Dallas and Atlanta, but right in line with the national average. According to the Texas Education Agency, over the past five years high school graduation rates have improved across the region; however, only 80 percent of residents have a high school diploma – five percent below the national average. With respect to preschool, around 22 percent of the region’s children are enrolled compared to the 24 percent national average and upwards of 25 – 30 percent in peer regions. 7 GCEDD - Comprehensive Economic Development Strategy Workforce The GCEDD region has an economy built on a diversity of businesses and industries – including globally recognized petrochemical, medical, and agricultural sectors. The region’s major economic drivers include one of the nation’s busiest ports, proximity to natural gas and oil assets, and over 4.6 million acres of agricultural production 1. Also, the region has a strong entrepreneurial culture, “ranking first in the nation in the share of earning coming from self-employment.” 2 For all its strengths, the region still needs to address a higher-than-average unemployment rate, deficit in the skill and training of the existing workforce, and a growing gap between high-skill/high-wage and low-skill/low-wage employment opportunities. From 2000-2006, low regional unemployment consistently followed national trends. In 2007, national unemployment began to rise at a faster pace than the region and Texas as a whole; however, the global economic crisis did not leave the GCEDD region untouched. Houston and Harris County trailed the nation entering the recession because high energy prices protected the region through much of 2007 and 2008. Plunging energy prices in the final two quarters of 2008 and into 2009 slowed that growth considerably. Figure 5 – Unemployment Rates in GCEDD Region GCEDD Austin Brazoria Chambers Colorado Fort Bend Galveston Harris Liberty Matagorda Montgomery Walker Waller Wharton 2005 2006 2007 2008 2009 2010 2011 2012 6.0% 4.7% 6.4% 7.1% 4.9% 5.6% 6.2% 6.0% 7.7% 9.2% 5.3% 5.9% 6.1% 5.6% 5.7% 4.6% 5.4% 5.5% 4.4% 5.2% 5.4% 5.9% 6.1% 7.7% 4.7% 5.3% 5.7% 5.0% 4.7% 4.1% 4.8% 5.2% 4.1% 4.4% 5.0% 4.8% 5.8% 6.7% 4.2% 5.0% 4.9% 4.7% 4.6% 4.0% 5.0% 5.5% 3.8% 4.3% 5.0% 4.6% 5.8% 6.7% 4.1% 5.1% 5.0% 4.4% 6.4% 5.7% 7.4% 7.6% 5.5% 5.9% 8.1% 6.3% 8.6% 9.0% 5.7% 6.3% 6.6% 5.8% 8.8% 8.3% 9.4% 9.9% 7.6% 8.2% 9.4% 8.9% 11.6% 11.8% 8.0% 7.6% 8.8% 8.6% 8.7% 8.8% 9.4% 9.8% 7.5% 7.8% 9.6% 8.8% 12.0% 12.3% 7.6% 7.7% 8.8% 8.6% 7.6% 6.7% 8.5% 8.6% 6.4% 6.7% 8.8% 7.6% 10.1% 11.4% 6.6% 7.4% 7.4% 7.9% Source: Texas Workforce Commission Figure 5 – Unemployment Rates in the GCEDD Region, shows the spike in unemployment rate between 2009 and 2012, with Liberty and Matagorda Counties exceeding 10 percent unemployment in all of those years. According to the Texas Workforce Commission (TWC), all employment sectors experienced dips in employment over this time period, but mining and logging employment dipped later and recovered faster than most. In the Houston metro region, these jobs are almost entirely related to oil and gas exploration and production. Between 2010 and 2013, the mining and logging sector added 30,000 jobs, 1 2 USDA. Census of Agriculture, Texas State and County Reports. 2007. Dept. of Commerce Bureau of Economic Analysis. Regional Data. 2012. H-GAC Existing Conditions Report. 8 GCEDD - Comprehensive Economic Development Strategy the education and healthcare sector added 46,000 jobs, and the manufacturing sector added 39,600 jobs. For more detailed information regarding specific sector employment changes, visit the H-GAC Socioeconomic Data page. As of 2013, the unemployment rates for each county have decreased and the region as a whole has an unemployment rate of 6.7 percent; however, this rate is still two percentage points higher than pre-recession rates – 4.2 percent. In 2011, the Gulf Coast Workforce Board (Workforce Solutions) produced a workforce report that compared the 13-County region to six competitor regions across the country. The Report Card evaluates the areas in six key dimensions: (1) Industries and Employers, (2) Labor Force and Knowledge Jobs, (3) Market Alignment, (4) Education, (5) Income, Wealth and Poverty, and (6) Places to Live and Work. In comparison to other regions, the Report Card found that the Gulf Coast region had the following: Positives • • • • The highest five-year growth in business establishments High rates of industrial diversity The highest rates of housing affordability Strong balance of people entering and exiting the workforce Negatives • • • • The lowest percent of people with a high school diploma or equivalent (80%) The lowest expenditure per student The highest rate of individuals in poverty and working (37%) The longest commute times The region’s business diversity and strong connections to the oil and gas industry allowed it weather the economic downturn in better shape than most. However, the region’s population is growing faster than the economy – meaning that it is unable to adequately absorb the influx of residents. Also, the Report Card found that the average occupation requires more "Jobs were cut in greater numbers in education than the average resident has earned, resulting in the recruitment of out-of-region talent. While managerial lower skill occupations and support jobs positions acutally increased during the recession, lower-skill that more often pay lower wages, while positions were released at a significant rate. Moving higher paying, higher skilled managerial, forward, workforce and economic development strategies professional and related jobs actually must focus on investing in training and education programs increased." (Workforce Report Card) that allow the region to retain and attract businesses that offer high-skill, high-wage opportunities, as well as increase the number of service sector opportunities. For more detailed information regarding workforce issues, visit the Gulf Coast Workforce Solutions at www.wrksolutions.com and access the Gulf Coast Workforce Report Card here. In order to address the connections between early education, young adult development, and employment, Workforce Solutions also offers the following programs: • • • • The Career Cube is an interactive, web-based tool for educators, parents, students and the general workforce that highlights four key industries. Focus On profiles provide career information for each of the Gulf Coast Workforce Board’s key industries and high-skill/high-growth occupations. When I Grow Up is a series of career education curricula for teachers to use with students that provide them with information about various careers and good jobs. Landing That First Job! workshop was adapted from job search workshops to have a more youth-friendly appeal in helping young people with little or no work experience. Industry and Occupation Cluster Analysis Industry and Occupation Cluster Analysis identifies networks of businesses and industries that are creating wealth and opportunity in the region. Tools provided by www.StatsAmerica.org assist economic 9 GCEDD - Comprehensive Economic Development Strategy development professionals in categorizing the region’s strengths, as well as those of individual counties with respect to industrial development. Occupation cluster analysis focuses on the knowledge, skills and abilities of the individuals who work in certain jobs – providing insight the local and regional talent base. Tools provided by www.StatsAmerica.org enable economic development professionals to collaborate with businesses managers, educators, and workforce development professionals to develop talent pipelines that address regional employment needs. Overall, cluster analysis can help direct investment into industrial and occupation sectors that will provide the region with a competitive skills advantage. The following tables show a regional and county-level analysis using location quotients. A location quotient over 1.0 means that a region or county has a higher concentration of employment in a particular industry than the national average. Industry Clusters and Location Quotient by County Austin Brazoria Chambers Colorado Advanced M aterials Agribusiness & Food Tech Apparel & Textiles Arts, Ent, Rec & Vistor Ind. Biomedical & Biotechnical Business & Financial Serv. Chemicals & Chem Products Defense & Security Ed. & Know. Creation Energy (Fossil & Renewable) Forest & Wood Glass & Ceramics Info Tech & Telecomm Transp & Logistics M anufacturing Supercluster Primary M etal Fabricated M etal M achinery Computer & Elec Electrical Equip, & Component Transp Equip M ining Printing & Publishing Fort Galveston Harris Liberty M atagorda M ontgomery Walker Waller Wharton Bend 1.57 1.82 2.35 1.24 1.27 0.98 1.47 1.20 0.77 1.74 1.07 2.98 1.19 2.81 0.84 3.41 6.89 0.67 0.30 0.34 2.07 6.30 0.38 1.25 4.36 9.78 0.78 0.70 0.49 0.47 0.66 0.59 0.81 0.26 0.35 0.70 0.55 0.58 0.26 0.95 0.95 1.72 1.05 0.76 1.34 0.75 0.71 1.24 0.85 0.91 1.04 0.82 1.18 1.21 0.77 0.91 1.57 1.13 1.12 1.14 1.05 1.05 1.26 0.82 0.75 1.09 0.90 0.68 0.55 1.29 0.93 1.22 0.74 0.66 1.27 1.08 0.64 0.60 2.28 1.99 3.34 2.98 1.33 1.25 1.60 1.66 1.55 1.94 1.49 4.53 2.41 1.74 0.90 0.61 0.58 1.25 0.77 0.89 0.81 0.75 1.01 0.71 0.69 0.39 1.93 1.05 0.47 0.78 1.20 1.36 0.78 0.75 0.50 0.83 1.32 1.57 0.43 1.66 1.83 3.43 1.81 1.68 1.67 1.77 2.06 1.99 1.88 2.01 2.39 2.28 1.09 0.32 0.49 1.18 0.50 0.35 0.60 2.50 0.00 0.68 3.05 0.58 0.26 1.12 1.89 1.76 1.70 0.85 0.58 1.52 0.95 0.00 2.06 1.00 4.19 0.94 1.72 0.79 0.25 0.45 1.54 0.70 1.02 0.34 0.40 1.18 0.41 0.57 0.18 1.10 1.48 2.48 1.73 0.78 1.21 1.18 1.59 1.20 1.16 0.82 1.64 1.65 1.72 1.86 1.49 1.69 1.44 0.95 1.70 1.89 1.37 2.04 1.23 4.60 1.22 3.07 1.72 19.23 0.00 1.75 0.53 1.19 5.16 0.00 2.19 0.00 3.81 2.56 1.98 2.21 1.41 2.71 1.35 0.95 2.03 3.02 1.43 2.28 1.60 5.13 1.80 1.92 2.14 0.75 1.45 1.55 0.66 2.14 1.61 0.00 2.58 1.70 8.33 1.60 1.13 0.84 0.00 0.00 2.08 0.96 1.07 0.00 0.00 1.83 0.50 2.79 0.00 0.00 1.78 0.00 2.06 1.82 0.23 1.29 0.00 0.00 1.25 1.21 0.00 0.00 1.81 1.35 1.41 0.00 0.34 2.01 0.63 0.00 7.17 0.55 0.00 1.12 0.00 0.79 3.38 6.16 8.31 1.35 1.75 1.53 7.28 1.79 1.92 1.40 1.95 3.28 1.12 0.58 0.24 0.46 0.72 0.55 0.82 0.34 0.35 0.90 1.17 0.51 0.34 10 GCEDD - Comprehensive Economic Development Strategy Occupation Clusters and Location Quotient by County Austin Brazoria Managerial, Sales,& HR Skilled Production Workers Chambers Colorado Fort Bend Galveston Harris Liberty Matagorda Montgomery Walker Waller Wharton 0.86 0.92 0.94 0.81 1.16 0.97 1.10 0.86 0.80 1.06 0.77 0.92 0.79 1.44 1.48 1.60 1.21 1.08 1.14 1.26 1.41 1.63 1.20 0.83 1.38 1.16 Health Care & Med Science 0.45 0.71 0.44 0.73 0.84 0.83 0.87 0.82 0.56 0.81 1.12 0.58 0.65 Health Care & Med Science (Practition) 0.41 0.90 0.31 0.77 1.06 0.86 0.92 0.76 0.49 0.92 0.96 0.41 0.63 Health Care & Med Science (Technician) 0.45 0.74 0.54 0.70 0.89 0.76 1.00 0.90 0.59 1.08 0.95 0.41 0.70 Health Care & Med Science (Therapy) 0.47 0.63 0.45 0.73 0.74 0.84 0.80 0.81 0.57 0.67 1.24 0.69 0.64 0.85 0.75 0.78 0.55 1.08 0.85 1.09 0.63 0.54 0.92 0.67 0.69 0.62 0.76 0.84 0.68 0.79 1.16 0.98 1.01 0.77 0.75 1.00 0.91 0.65 0.94 0.68 0.58 0.49 0.22 0.92 0.66 1.04 0.39 0.31 0.72 0.47 0.50 0.23 0.98 1.06 1.75 1.00 0.98 1.35 1.87 1.02 0.99 1.16 1.81 1.33 1.30 6.89 1.53 3.59 9.01 0.56 0.53 0.20 3.58 3.96 0.79 2.75 5.71 5.18 0.89 1.17 1.30 0.78 1.01 1.17 0.90 1.14 1.27 1.17 1.15 1.11 1.19 0.78 1.13 0.89 1.19 1.18 0.97 1.49 0.61 2.37 1.06 2.06 1.13 0.57 1.28 1.53 2.14 0.39 1.23 1.14 1.94 0.61 1.23 1.14 0.53 1.10 0.44 0.64 0.96 0.55 0.77 1.16 0.95 0.88 0.92 1.07 0.83 0.57 0.57 0.87 0.70 0.89 0.43 0.66 1.30 0.87 0.77 0.68 0.60 0.95 0.58 0.53 0.60 Public Safety 0.86 1.20 1.35 0.93 0.86 1.74 1.06 1.42 1.60 1.04 7.79 1.67 1.48 Postsecondar y Education 0.83 1.00 0.74 0.31 0.70 2.02 0.81 1.13 0.49 0.55 5.31 2.60 0.44 Tech-Based Knowledge 0.79 0.87 0.83 0.46 1.00 1.02 1.14 0.67 0.56 0.85 1.35 0.95 0.50 Mathematics, Statistics, & Accounting Legal & Financial Services, & Real Estate Information Technology Natural Sciences & Env Mgmt Agribusiness & Food Tech Education, Remediation & Social Services Bldg, Landscape & Construct Design Engineering & Related Sciences Personal Services Occupations Arts, Ent, & Broadcasting The industry cluster analysis identifies a number of location quotients above 1.2. Many of the rual counties have a higher concentration of employess in the Agri-Business & Food Tech industry – most 11 GCEDD - Comprehensive Economic Development Strategy notably 6.9 in Colorado and 9.8 in Wharton. The Manufacturing and Energy Clusters have consistently high location quotients across the region. Industries with high location quotients are often export-oriented industries that bring money into the region, rather than circulating money already present. The AgriBusiness & Food Tech occupation cluster has consistently high location quotients in the rural counties, meaning that those areas have a competitive advantage. Refer to the tables above for a detailed look at clusters across the region. Infrastructure The transportation and goods movement network in the metropolitan region is exstensive and encompasses water, air, and land transportation. Transportation systems in the GCEDD region are predominantly auto-oriented, with over 80 percent of trips made by car. On average, residents of the region drive 30 miles per day, with Liberty, Montgomery, and Waller County residents having the longest commute. The percentages of residents walking, biking, and/or taking public transit to work are below the national averages. The region includes over 24,000 miles of highways, 140 miles of HOV lanes, and 8 miles of light rail. Two Interstate Highway facilities pass through the region, IH-10 and IH-45. There are also three US highways and a well-maintained network of state highways and farm-to-market roads. Multiple toll roads complement the freeway system, and the Grand Parkway will serve as the metropolitan region’s third loop and will connect many of the smaller, rural communities with one another. Almost 700 million tons of freight is transported in the region’s system per year by way way of roadways, three Class 1 railroads, four deepwater ports, two major air cargo facilities, and over 21,000 miles of pipelines. According to the Federal Aviation Administration, the Houston Airport System is the tenth busiest in the country based on total passenger traffic and sixteenth busiest for tonnage. Four major ports serve the region: Port of Houston, Port of Freeport, Port of Texas City and Port of Galveston, as well as a number of smaller ports.The Port of Houston is the number one port in the country for exporting products and ranks second for total tonnage. It creates more than one million jobs and over $178 billion in economic activity. The Port of Galveston maintains a substantial cruise ship industry. The GCEDD region’s transportation network is critical to domestic and international trade. The Intra Coastal Water Way runs along the coastal and barrier island portion of the region, providing barge and waterborne shipping opportunities along the Texas Coast and the Gulf of Mexico. Also, the region boasts an extensive rail network that supports the intermodal strengths of goods movement across the region. The region hosts a mixture of sewage and waste water treatment facilities ranging from single residence on-site septic systems to small package treatment plants for neighborhoods and businesses to large municipal waste water treatment plants serving thousands of homes and businesses. Many communities rely upon centralized collection systems, on-site septic tanks, or both. Numerous small communities have inadequate systems and pursue funding opportunities to upgrade facilities via the Texas Department of Agriculture and U.S Housing and Urban Development Community Development Block Grants. The region's water supply has gradually shifted from groundwater to surface water sources. This is especially true for the urbanized areas in and around the City of Houston, which have experienced major land subsidence in the past. An excessive groundwater withdrawal is the major cause of subsidence throughout the greater Houston area. By the late 1970s, subsidence had surpassed nine feet along the 12 GCEDD - Comprehensive Economic Development Strategy Houston Ship Channel and as much as five feet in the Texas City area, with a large part of Harris County experiencing at least one foot of subsidence. Land subsidence resulted in the destruction of housing subdivisions along the water front of Galveston Bay, damage to roads and drainage infrastructure, altered discharge rates and flow patterns at the mouths of major bayous and massive loss of fringing wetlands. The majority of the region affected by subsidence has converted to surface water as a primary supply. Major surface water reservoirs in the region include Lake Conroe, Lake Livingston, and Lake Houston, with another reservoir under construction in Wharton County. The State’s regional water planning efforts analyze current and future water demands by municipal, agriculture, industry, and environmental flow needs. Water restrictions and drought have had significant impacts on the agricultural industry in many of the rural communities. In November 2013, the State of Texas paseed Proposition 6, which accomplished the following: • • • Appropriated $2 billion out of the state’s Rainy Day Fund to create two accounts to help fund water projects; Created the State Water Implementation Fund for Texas (SWIFT), which will provide loans to assist in financing various projects from the 2012 State Water Plan - submitted by regional water planning groups; Created the State Water Implementation Revenue Fund for Texas (SWIRFT), which will serve as a water infrastructure bank administered by the Texas Water Development Board (TWDB). The SWIFT funds will help communities develop and optimize water supplies at cost-effective interest rates, and there is a 10 percent set aside for rual communities planning. For additional information go to the Web Sites for Region H (www.regionhwater.org) that covers Austin, Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery, Walker and Waller Counties and Region K (www.regionk.org) that covers Colorado, Matagorda and Wharton Counties. Communication and broadband services are principally being offered by local exchange carriers, cable companies, and wireless companies. Broadband provides internet, data, television, and telephone services – primarily in the heavily urbanized areas and urban counties. The development of Voice over Internet Protocol (VoIP) has enabled cable companies to begin offering telephone service over their own facilities, and cable is becoming an increasingly important competitor for telephone services. AT&T and Verizon own and operate a majority of high-speed lines in the GCEDD region. Many rural areas do not have access to broadband services and rely upon dial up connections or digital service lines for internet access. This service deficit is a significant barrier in attracting larger industries that require large capacity for the transmission of data. The electricity that powers the homes, businesses and industrial facilities of the region primarily comes from a network of fossil-based and nuclear powered generation facilities. Natural gas fueled power plants are located throughout the region, and there is interest in expansion because of the region’s proximity to shale plays. Plans are underway to add additional generating capacity to the region, including expansion of the nuclear facility – upon approval. 13 GCEDD - Comprehensive Economic Development Strategy Regional Resources Community Financing Communities throughout the region have taken a proactive role when it comes to financing business and industrial expansions. Many communities and other taxing authorities have adopted tax abatement policies, enterprise zone designations, bond financing, and other assistance programs in their efforts of expanding tax bases and increasing employment opportunities. There are 87 Independent School Districts within the GCEDD, which participate in Tax Increment Financing, abatement programs, and other incentive strategies to finance public improvements and encourage business development. These additional sources of revenue enable communities to leverage or substitute for public grant money. In addition many municipalities are utilizing sales tax to promote development, through the creation of development corporations, as detailed in Figure 6. Further information on Economic Development Sales Tax can be found in the Attorney General’s Handbook on Economic Development Laws for Texas Cities, which is available at www.oag.state.tx.us. Figure 6 - List of 4a/4b Cities in the GCEDD Region City Galveston Angleton Arcola Bay City Bellville Brookshire Clear Lake Shores Cleveland Clute Conroe Dayton Dickinson Freeport Galveston Hempstead Kemah La Porte Lake Jackson League City Liberty Magnolia Manvel Meadows Place Montgomery Nassau Bay Needville Oak Ridge North Orchard Oyster Creek 4a/4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4a/4b 4b 4b 4b 4b 4b 4a/4b 4b 4a/4b 4b 4b 4b 4b 4a/4b 4b City Palacios Pasadena Pearland Prairie View Richmond Rosenberg Santa Fe Seabrook Sealy Shenandoah Stafford Sugar Land Sweeny Tomball Wallis Webster Weimar West Columbia Wharton Willis Beasley El Campo Hitchcock La Marque Palacios Sugar Land Texas City Waller Willis 4a/4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4b 4a 4a 4a 4a 4a 4a 4a 4a 4a In addition to providing local incentives, many economic development groups have formed sub-regional partnerships. The partnerships are often expressly formed to pursue a specific goal or activity, leveraging resources, and maximizing regional resources for the net result of more economic development activity. These intra- and extraregional organizations – in addition to the work of the GCEDD – offer a multitude of services and assistance to individuals and groups in the region who are conducting economic development activities. Small Business Finance Programs Small business financing programs provide viable financing opportunities for existing and prospective business owners in the region. Several financing opportunities are available for entrepreneurs in the Gulf Coast region. The U.S. Small Business Administration (SBA), established in 1953, provides financial, technical, and management assistance to help applicants start, run, and grow their business. The SBA has a portfolio worth over $45 billion consisting of business loans, disaster 14 GCEDD - Comprehensive Economic Development Strategy Local SBDC Offices Brazosport College SBDC Galveston County-UH SBDC Lee College SBDC Lone Star College System SBDC Sam Houston State University SBDC San Jacinto College SBDC Coastal Plains SBDC loans, and loan guarantees, as well as a venture capital portfolio of $13 billion. In total, SBA is the nation's largest single financial backer of small businesses. The SBA offers management and technical assistance to more than one million small business owners per year. The SBA also plays a major role in the government's disaster relief efforts by making low-interest recovery loans to both homeowners and businesses. The SBA also provides funding to over 900 Small Business Development Centers across the country. More information on the SBA is available online at www.sba.gov. Fort Bend County SBDC The Houston-Galveston Area Local Development Corporation operates as a licensed Certified Development Company (CDC) in Prairie View SBDC the 13-county GCEDD region. The role of the CDC is to market, process, close and service SBA 504 Loans. More information on the Houston-Galveston CDC is available online at www.h-gac.com. University of Houston SBDC The GCEDD Business Loan Fund (BLF) helps finance new or expanding small businesses when traditional funding is not available. The fund also provides loan interest loans to local government organizations in the 13-County region. For mor information, visiit www.gcedd.org. The Texas Agricultural Finance Authority was created in 1987 as a Public Authority within the Texas Department of Agriculture. TAFA provides financial assistance to creditworthy individuals and businesses in partnership with banks or other agricultural lending institutions through six programs to eligible agricultural and non-agricultural businesses. More information on TAFA programs is available online at www.agr.state.tx.us. The U.S. Department of Agriculture’s Rural Development program was created to increase economic opportunity and improve the quality of life for all rural Americans. Its business programs provide help to rural areas that need to develop new job opportunities, allowing businesses and cooperatives to remain viable in a changing economy. The Community Development Programs operate special initiatives to demonstrate effective techniques and address unique and pressing economic development issues. More information on this program is available online at www.rurdev.usda.gov. Economic Development Planning In addition to the above resources, more and more local governments and economic development organizations in the region are recognizing the benefits of multi-jurisdictional coordination through countywide or multi-city economic development organizations. Figure 7 lists some of the major regional 15 GCEDD - Comprehensive Economic Development Strategy and sub-regional economic development planning organizations. In addition to those listed, there are at least 50 economic development organizations at the local level addressing economic development planning within their jurisdictions. The listing of local agencies and programs represents a sample of agencies currently involved with the GCEDD. This list is continually updated via our website to ensure an exhaustive list of resources is available in the Gulf Coast region. Please visit our website at www.h-gac.com for more information about these and many other programs. Figure 7 – Regional and Sub-Regional Planning Organizations Regional Gulf Coast Economic Development District The Gulf Coast Economic Development District is the federally designated economic development planning body for the 13-county Gulf Coast Planning Region. www.gcedd.org Sub-regional The Economic Alliance – Port Region The Economic Alliance Houston Port Region provides professional economic development services on behalf of sixteen communities surrounding the 25-mile Houston Ship Channel. The Greater Houston Partnership The Greater Houston Partnership is a regional chamber of commerce, economic development and world trade organization focused on bringing jobs and capital investment to the 10-county Houston Metropolitan Statistical Area. www.houston.org Bay Area Houston Economic Partnership The region has seen numerous planning activities geared toward The Bay Area Houston Economic Partnership is a memberfurthering economic development. The driven regional economic development organization focused City of Houston is planning and on bringing about prosperity and a high quality of life for the implementing programs in the Third 2+ million people who live and work in the region. Members Ward, Midtown, the Washington include aerospace, petrochemical, and healthcare companies, developers, bankers and real estate brokers, 13 cities, Avenue area, the Heights, and the East Galveston and Harris Counties, and the Port of Houston End, among others. Galveston is also Authority. revitalizing their central business The Lower Colorado River Authority: LCRA district to attract new businesses and The Lower Colorado River Authority provides business encourage tourism. Similar activities recruitment, business retention, expansion, tourism are occurring at various scales in Bay development and strategic planning services to the three City, Columbus, Conroe, Dayton, El counties that lie in the Lower Colorado River Basin in the Gulf Campo, and Huntsville, to name a few. Coast Region - Colorado, Matagorda and Wharton Counties. More information is available online at www.lcra.org. These efforts are being supported by EDA grants as well as by funding from other programs. Other major sources of funding include the U.S. Department of Housing and Urban Development, the Texas Community Development Program (administrated by the Texas Office of Rural Community Affairs (ORCA)), the U.S. Small Business Administration, the Governor’s Office of Economic Development & Tourism, and the U.S. Department of Agriculture–Rural Development. Regional Needs The region has benefited from a dynamic economy and active planning efforts; nevertheless, the region has several unmet needs. In collaboration with the Our Great Region 2040 planning efforts, GCEDD staff engaged local economic development professionals, government officials, and the general public in determining the underlying barriers and constraints to economic development within the region. The feedback was compiled and prioritized based on perceived need, and is reflected in Figure 8. In addition 16 GCEDD - Comprehensive Economic Development Strategy to traditional development tools, ancillary needs have been identified. Improved air quality, broadband expansion and development serve as major factors in economic development, and will be prioritized in future planning initiatives. Prioritization was also influenced by comments received from GCEDD Board members in January 2013. As a result, regional needs were grouped into three major priority categories (high, medium, low). Figure 9 - Regional Needs GCEDD Regional Needs High Priority Increasing Access to Broadband Job Training and Workforce Development Job Expansion of Major Employers Disaster Recovery and Community Resiliency Small Business Retention and Expansion Infrastructure Improvements Increasing Entrepreneurship Improved Air and Water Quality Planning for Water Resources Early Education Opportunities Single Family Housing (Workforce Housing) Eco-, Coastal, and Traditional Tourism Tax Abatements and Other Incentive Strategies Affordable Housing Community Development and Revitalization Agricultural Conversion and Diversification Industrial and Business Park Development Solid Waste Improvements Throughout the engagement process, participants emphasized three main regional priorities – (1) increasing broadband access, (2) improving workforce development, and (3) improving infrastructure. At the more localized level, needs are primarily infrastructure related: water, sewer, drainage, and roadways. Housing is another need, both low- to moderate-income housing and, in the rural areas and smaller cities, workforce housing. In general, the counties need business retention, infrastructure, small business expansion, and workforce development. For the Priority purposes of this document, workforce development will be defined as any activity related to the development of an employee. This includes but is not limited to, training, transportation, child care, job search activities, continuing education and any other activity enabling or contributing to an individual or groups professional development. Medium Priority The key challenges faced by local governments as they work to accommodate future growth are described below: • Mobility: The H-GAC region will have difficulty in keeping up with growing congestion without identifying new revenue sources to add roadway and transit capacity. Furthermore, as the roadway system grows larger, maintenance will consume an increasing share of available resources. Accordingly, it appears as though other approaches will also be necessary in order to maintain acceptable levels of mobility, including new design approaches, improving the coordination of land use and transportation planning, improved system management, as well as travel demand measures. • Air Quality: The Houston–Galveston region is designated as a non-attainment area by the Clean Air Act for exceeding the National Ambient Air Quality Standard for the pollutant ozone. There can be no net increase in air emissions for the eight county non-attainment area consisting of Brazoria, Chambers, Fort Bend, Galveston, Harris, Liberty, Montgomery and Waller counties. Against this backdrop, it is imperative that the region fulfills its State Implementation Plan (SIP) commitments to reduce both mobile 17 GCEDD - Comprehensive Economic Development Strategy and stationary source emissions. Failure to do so could result in the suspension of federal transportation funding and other economic consequences. • Drainage: Flood damage remains a significant threat for the region. As we continue to grow and develop, improvements to the local and regional flood control systems will be necessary to address current problems and keep up with future growth. Such initiatives will likely require a combination of approaches, including floodplain management and detention policies, funding mechanisms, improved mapping, re-thinking development practices in some areas and coordination among multiple jurisdictions within watersheds. • Quality of Life: Public services such as health, safety and education, along with amenities such as cultural and recreational opportunities, scenic natural areas and “community character” are becoming increasingly important factors in the economic competition among and within regions. Investments and public policies aimed at improving quality of life appear to have the potential to yield economic benefits by maintaining or improving the region’s desirability as a place to live and work. • Water Resources: Adequate long-range supplies have been identified in the State Water Plan which meets the region’s future water demand. However, implementation of the plan’s recommendations will require considerable investment and coordination among the region’s local governments. Additionally, many of the region’s rivers, streams, lakes, bays and bayous do not currently meet water quality standards. In connection with the Texas Commission on Environmental Quality and as part of the Clean Waters Act, H-GAC conducts water quality management planning and watershed protection planning for the 13-county region – addressing wastewater, stormwater, and water quality issues in the region, including permitting, siting, and testing. • Rural Issues: While the region’s urbanized area is focused on responding to the challenges of growth, its rural areas continue to face challenges in providing economic opportunity for their residents. Deficiencies in infrastructure, housing, health care, secondary education and the financing of capital will need to be addressed to improve the economic competitiveness of the region’s rural areas. • Sewage Collection and Treatment Facilities: Cities and other waste disposal entities across the region continue to make major investments in their wastewater treatment facilities and collection systems to keep up with population growth and meet state and federal regulatory requirements. Securing funding for major improvements to residential and industrial wastewater facilities remains a challenge for smaller communities in the region. • Workforce Development: As previously stated in this document, addressing skilled-labor work force shortages, establishing training centers and academies, and increasing high school graduation rates will be key to meeting the challenges of future economic growth. • Housing: Providing safe, sanitary and decent housing to the region’s citizens, and increasing the quality, availability and affordability of workforce and middle-class housing in the region – particularly rural areas and outlying cities will be critical to achieving healthy economic development and increasing industrial and manufacturing jobs. 18 GCEDD - Comprehensive Economic Development Strategy SWOT Analysis Strengths, Weaknesses, Opportunities, and Threats (SWOT) Analysis provides a guide to identifying the positives and negatives within the region, as well as the potential challenges communities will face. Along with regional needs, the GCEDD engaged economic development professionals, government officials, and the general public in examining the region’s strengths and weaknesses and utilized that feedback to shape the goals and strategies presented later. Figure 10 shows the regional SWOT Analysis results. For additional information, please visit www.ourregion.org. Vision, Mission, Goals, and Strategies In 1986, 12 of the 13 counties in the H-GAC region experienced levels of distress sufficient to qualify for designation by the EDA as redevelopment areas. Each of the counties developed their own overall economic development program (OEDP), along with their own set of goals and objectives. In 1988, when the Gulf Coast Economic Development District was formed, the regional OEDP consolidated the goals into a unified set of six goals. In 1993, the GCEDD Board held a retreat in which they reviewed the regional goals and objectives. The original six goals were retained as they continue to be relevant to regional economic development needs. In 1997, the GCEDD Board inserted an additional goal to incorporate the Title IX Economic Adjustment Strategy activities by targeting distress—both long-term and sudden and severe—in our region. Presently, the GCEDD has revised its goals to align with the 19 GCEDD - Comprehensive Economic Development Strategy extensive outreach and engagement efforts of the Our Great Region 2040 plan and the coordinated efforts of local governments, non-profits and development organizations in the 13-County district. Listed below are the Vision, Mission, Goals, and Strategies developed by the CEDS Committee and approved by the GCEDD. They represent a comprehensive approach to economic development planning in the region – one that takes into account education, workforce, and environmental practices. Vision The Gulf Coast Economic Development District Comprehensive Economic Development Strategy plays a key role in ensuring the region is a great place to live and work, with a high quality of life for all. Mission Our mission is to provide the region with a Comprehensive Economic Development Strategy that identifies key priorities, strategies, and initiatives that foster a vibrant and diverse regional economy. Goals and Strategies In support of the vision and mission, the District adopted the following eight goals which are strongly aligned with the goals and strategies of the Our Great Region 2040 plan. The goals provide a sound structure for the activities of the region and are relevant to the needs identified by the GCEDD Board of Directors, CEDS Committee, and the community engagement process. The CEDS Committee developed draft goals and strategies that were then presented to the GCEDD Board for review. After receiving and organizing the feedback, GCEDD staff and the CEDS Committee then refined the following goals and strategies – which were adopted by the District in July 2013. A. Our Region is resilient and adaptive to economic downturns, natural disasters, and new opportunities. The region has an established tradition of bouncing back stronger from natural and man-made disasters. The GCEDD region is vulnerable to hurricanes, flooding, drought, and wildfires, as well as impacts from national and global economic crises. Reducing our vulnerability, where possible, to these events and speeding the rate of recovery will improve our safety and quality of life, as well as our ability to attract new residents and businesses. Structural solutions – like dikes, flood gates and major drainage improvements will be needed to protect key assets, but their high cost means that this approach must be carefully targeted. Using the natural landscape to absorb the floodwaters and storm surge and being wiser about how and where we build to reduce our vulnerability, are less expensive approaches that can be applied more broadly. This section provides strategies on how the region can better plan for future events, adapt to changing conditions, and recover after an event. 20 GCEDD - Comprehensive Economic Development Strategy B. Our Region has a diverse economy and skilled workforces that support businesses, innovation, and entrepreneurship. The GCEDD region has one of the most robust economies in the nation, and momentum continues to build with growing energy, manufacturing, and medical sectors. One of the region’s major strengths is its entrepreneurial culture – that supports the financing and development of small businesses. However, deficits exist in high school graduation rates, which could lead to a widening gap between the needs of employers and the qualifications of our workforce. The current economic growth gives the region an opportunity to strategically invest in better education and training, as well as more collaborative financing measures for business owners. The region can offer training opportunities to promote financial self sufficiency, including personal and family budgeting and investment strategies. While not referenced in the strategies specifically, supporting technical assistance for entrepreneurs – as well as associated financing tools for those looking to start or grow a small business in the region – are a major focus for the region moving forward. This section provides strategies on how the region can help maintain a competitive economy, support thriving businesses, and develop a prepared workforce. C. Our Region’s residents have access to education, training, jobs, and business opportunities that support a good quality of life and financial stability. By increasing the skill and education levels of the regional workforce, more locally sourced labor will be able to fill employer need from within – ultimately, improving competitiveness and raising incomes. An educated, employable workforce will reduce unemployment and poverty in the region, lowering public costs for housing and other social programs. In order to improve graduation rates and academic achievement, early and late stage educational programs must be targeted for support. The District will support efforts that expand the training available to adults to enhance their job skills, ranging from basic to highly specialized. Residents employed in jobs that provide financial security will improve their quality of life and add to the region’s economy. 21 GCEDD - Comprehensive Economic Development Strategy D. Our region’s transportation and infrastructure promotes effective goods movement and is well connected to national and global destinations. The GCEDD region is home to world class port facilities, as discussed earlier in the CEDS. In addition, the region contains one of the most dynamic intermodal networks in the country – bringing together rail, pipeline, air, and ground transportation to serve growing international and domestic markets. This section provides strategies that focus on building and maintaining an efficient network, increase transportation choices, and improve planning and coordination. E. Our region’s local governments have access to data, tools, and solutions that facilitate informed decisions on funding and investment decisions. As derived from extensive community engagement activities, the CEDS focuses on a few basic items – grow an adaptable, and prepared workforce; support local small business owners in starting or expanding their business; and make sure local government, industry, and business have the information and infrastructure they need to thrive. In order for this to happen, economic development organizations need to have access to the most up-to-date information and resources, and there must be a collaborative approach to problem identification and solving. F. Our region’s residents live in safe, healthy communities with transportation options and have access to services and amenities that support a high quality of life. Due to the diverse geography of the GCEDD region, the population resides in dense urban centers, rural towns, and suburban communities. The region has some of the most affordable housing opportunities in the country – especially when comparing it to areas of similar size and diversity. However, major deficits exist in the quality of affordable housing, as well as the number of options for rural areas. In combination with the Our Great Region 2040 plan, the CEDS supports coordinated approaches to transportation, land use, and housing development. This section provides strategies on how the region can support a thriving housing market, provide housing choices to meet diverse needs, and provide quality housing that is both safe and healthy. 22 GCEDD - Comprehensive Economic Development Strategy G. Our region’s water infrastructure supports current and future demands, while promoting the growth of healthy and economically dynamic communities. The GCEDD region depends on a stable supply of water to meet the needs of a growing population, as well as for the needs of the industrial and agriculture sectors. In order to meet this growing need, local governments and regional entities will have to rethink how water projects are funded and they will have to focus on repairing an extensive network of aging infrastructure. This section provides strategies on how the region can increase water supplies, improve the efficiency of water delivery, and protect water quality. H. Our region values its unique ecosystems and understands the ecological, economic and cultural benefits they provide. The preservation of our natural resources – especially along waterways – serves many functions, including pollution reduction, floodwater storage, and recreation/tourism opportunities. This section provides strategies on how the region can help protect the quality of the environment and increase awareness of the value of ecological benefits. 23 GCEDD - Comprehensive Economic Development Strategy Action Plan Based on community engagement and priority development, the GCEDD has created the following action plan in order to target specific objectives pulled from the goals and strategies. The section below discusses the major work elements of the District. 1. Support assessments of high-speed data connections and gaps, particularly in rural areas. • • • Collaborate on a region-wide gap analysis focusing on broadband access Survey counties and cities on needs and current practices Identify challenges to expanding access Outputs – Online mapping component through GCEDD website, final brief, presentations -------------------------------------------------2. Support efforts to obtain federal, state, and regional funding to upgrade and maintain aging infrastructure (water, sewer, drainage facilities), while supporting the expansion of infrastructure to underserved areas. • Targeted support of funding applications that best serve the needs of the region • Provide up-to-date infrastructure information (data, legislation, etc.) Outputs – GCEDD Letters of Support, investment in water infrastructure, presentations and updates -------------------------------------------------3. Collaborate on data access tools that support the pursuit of funding and stronger regional economic information. • Maintain current list of regional projects (updated monthly) • Utilize the GCEDD website and partner sites as an information clearinghouse • Provide technical assistance and reports - economic impact analysis, EDA statistical tools Outputs – GCEDD Letters of Support, updated list of funding streams, workshops/demonstrations of data tools, technical assistance to interested parties -------------------------------------------------4. Support the increased economic resiliency of our region. • Support regional and local analyses to determine gaps and opportunities in diversification • Collaborate on business expansion and retention efforts • Support local governments in conducting economic vulnerability assessments Outputs – GCEDD Letters of Support, participation in workshops and taskforces, technical assistance -------------------------------------------------5. Support workforce development that aligns with high growth areas. • Support the expansion of training and educational opportunities offered by educational and vocational institutions throughout the region • Support workplace and soft skills development • Support small business incubators through partnerships between and/or community anchor institutions to foster the development of locally owned enterprises Outputs – Coordination with local colleges and Workforce Solutions, technical assistance for grants 24 GCEDD - Comprehensive Economic Development Strategy Evaluation Plan The evaluation plan is a crucial element in the CEDS. It allows the District to review the activities of the year, determine the effectiveness of the activities and revise the work plan appropriately for the upcoming year. The evaluation plan for the CEDS will be based on a list of four performance measures, with progress reported at quarterly GCEDD Board meetings. The performance measures are scored by the Executive Committee and the results will be used to determine which activities to keep, which activities to modify, and what possible new activities should be developed. GCEDD staff will convene the CEDS committee on an annual basis to review evaluation criteria, objectives and metrics, and overall effectiveness of the document. A summary document will be created from these meetings and provided to the District Board for final review. The CEDS performance is to be measured at the completion of the contract period. The evaluation is to be on a scale of 1 to 5, with 5 indicating the ideal. In addition to the measures listed below, the GCEDD will document the number of jobs retained or created as a result of CEDS goals and strategies, as well as the amount of public and private economic development investment within the region. CEDS Evaluation Objectives 1. Quality of the Regional CEDS • Usefulness of the economic analysis • Appropriateness of Vision Statement • Relevance of the goals in support of the Vision Statement • Completion of the work plan 2. Extent of participation by government, business, and community leaders • Board of Directors meeting attendance • Establishment of effective committee structure • District communication and dissemination of information 3. Number of EDA grants awarded based on CEDS strategy. • 0 = 0 points • 1-2 = 2 points • 3-4 = 4 points • 5+ = 5 points 4. Hours of non-EDA-funded staff/volunteer activity in CEDS process. 25
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