The URL can be used to link to this page

Home My WebLink AboutItem 02 Joint PC/CC Meeting on Economic Opportunities Analysis / Economic Development Strategy AGENDA ITEM SUMMARY Meeting Date: Meeting Type: June 9th, 2008 Joint City Council/Planning Commission Work Session Development Services _0 David Reesor 7?1( 7 / /d1VL 726-3783 VO' 90 minutes SPRINGFIELD CITY COUNCIL ITEM TITLE: Department: Staff Contact: Staff Phone No: Estimated Time: ECONOMIC OPPORTUNITIES ANALYSIS / ECONOMIC DEVELOPMENT STRATEGY ACTION REQUESTED: Conduct a joint work session with the Planning Commission regarding the Economic Opportunities Analysis / Economic Development Strategy portion of the Commercial Industrial Buildable Lands (CIBL) /Goa114 Study. ISSUE STATEMENT: The purpose of this joint City Council/Planning Commission work session is to provide Springfield decision makers with a summary of economic trends affecting Springfield and discuss economic development priorities. ECONorthwest will facilitate this work session. ATTACHMENTS: Attachment 1: PowerPoint Presentation by ECON orthwest Attachment 2: Enlarged "Oregon's Clusters" slide and "Employer by Size and Type" slide DISCUSSION/ FINANCIAL IMPACT: On March 11 t\ The City Council / Planning Commission held a joint "kickoff' work session for the CIBL / Goal 14 Study. ECONorthwest staff facilitated the March 11 th work session where they presented the work program and state planning requirements, and gathered input on desired outcomes of the studies. Th.e purpose of the June 9th joint City Council/Planning Commission work session is to provide Springfield decision makers with a summary of economic trends affecting Springfield and d~scuss economic development priorities. ECONorthwest will begin the work session by presenting research related to economic trends as they may affect Springfield's economy and then lead the group in a "snow card" process to help prioritize economic development strategies. ECONorthwest'wouldlike to understand the decision makers' priorities for economic development in Springfield. The discussion of economic development priorities by Council and the Planning Commission will help guide the development of economic development goals and implementing strategies, which will ,be developed in a later work session. -- Springfield UGB Planning: The Implications' of Economic Trends on ~conomic Development . in Springfield Presented by: ECONorthwest June 9, 2008 '. Discussion Overview · Economic trends affecting Springfield's future growth - Local and regional trends - International and national · Potential growth sectors in Springfield · Discussion of economic'growth priorities for Springfield Buildable Lands Methodology and Work Program SCT Steering Committee, 9/27/00 1 ATTACHMENT.1 - 1 Local and Regional Economic Tre~ds Affecting Springfield's Future Growth . . Springfield: Some Quick Comparisons from 2000 Variable Springfield ' Lane County US Avg. HH size 2.54 2.42 2.59 Education High. School Grad . 81% 880/0 800/0 Bachelor's Degree 14% 26010 24010 In labor force 68.1 % 64.3% 63.90/0 ' Income Median HH $33,031 $36,942 $41,994 Median Family $38,399 $45,111 $50,046 Per ca pita $15,616 $19,68~ $21,587 Owner-occupied housing 53.6% 62.3% 66.20/0 Median home value $117,500 $141,000 $119,600 . Average Age 32.1 36.6 35.3 Soun:e: u.s. Census, 2000 Buildable Lands Methodology and Work Program seT Steering Committee, 9/27/00 2 ATTACHMENT,1 - 2 J Springfield's population is aging . Retirements may be off- 70 and older -t ! i set by people remaining 60-69 -1 ! in wor~orce longer 50-59 -1 ~ 40-49 . Greater retirements will -1 i -< 30-39 -L reqUIre more 20-29 replacement workers -1 ! : j 10-19 I -t Growth in seniors will Under 9 . I result in growth in 0% 5% 10% 15% 20% Percent of Population services for seniors Ell Lane Countv in 2000 . Lane Couatv in 2030 Source: Oregon Offlce,of Economic Analysis, 2004 . . The affects of Lane County's lower average income are mixed Per Capita Income, 1980-2005 · Lane County may attract domestic outsourcing - Back -office functions - Call centers · Fewer housing types are affordable to _: workers with lower 'wage jobs, decreasing homeownership rates Buildable Lands Methodology and Work Program $35,000 . $33,000 i $31,000 ;- $29,000 E i $27,000 ! $25,000 o S $23,000 0. ! $21,000 t = $19,000 . D. $15,000 1980 1985 1990 , 1995 2000 Y.ar -.u.S -0r8g0n -I..an8Caunty 5cIun::e: Bureau r:I Ealnonic Analysis, u.s. Department r:I Canunen:e SCT Steering Committee, 9/27/00 3 ATTACHMENT ,.1 - 3 Population growth will drive growth in some service sectors · Springfield population growth 1990-2007 - More than 12,600 people - 21% of Lane County's growth o"."'.'latlQI1;11;~iijilll:.~li~1Jiil~,II@;~:11111Iiflllfian;111~ljQI.laQO:Zj:I;li!;~lli l,ijNiim.ilw~_~~~Q~lli 248,709,873 281,421,906 301,621,157 52,911,284 21 % 1.1 % 2,842,321 3,421,399 3,745,455 903,134 32% 1.6% 1,962,816 . 2,380,606 2,602,790 639,974 33% 1.7% 282,912 322,959 343,140 60,228 21% 1.1% 44,683 52,864 57,320 12,637 28% 1.5% 112 669 ,8 1 3, 9 4 , Yo.8 0 Source: Population Research Center, 2007 ~ . . Services dominate employment in Lane County -57% of jobs in Lane County were services in ' 2006 - 13% in Retail - 12% in Health care and Social assistance - Services dominated employment growth between 1980-2006 - 73% of employment growth - More than 38,500 new jobs Source: Oregon Emplovrnent Department, 2006 Buildable Lands Methodology and Work Program ATTACHMENT,1 - 4 SCT Steering Committee, 9/27/00 4 Payroll in service sectors vary · Service industries with high average pay - Management of Companies - $64,000 - Finance and Insurance - $48,000 · Service industries with low average pay - Retail- $10,000 - Accommodations'& Food Service - $13,000 - Arts, Entertainment, & Recreation - $14,000 Source: Oregon Employment Department. 2006 . . Services will account for most , ' employment growth in Lane County, The State forecasts that the County's employment will grow by 22,700 jobs between 2006-2016 - Service sectors: 71 %or 16,200 jobs · Health care: 22% or 5,100 jobs · Profession services: 13% 'or 3,000 job,S - Government: 16% or 3,600 jobs - Manufacturing: 13% or 2,900 jobs . Source: Oregon Employment Department. 2007 Buildable Lands Methodology and Work Program SCT Steering Committee, 9/27/00 5 ATTACHMENT ',1 - 5 Manufacturing is a strength in Lane County's economy · County-wide clusters in wood products and transportation (RVs) · Higher than average payroll (county avg. was $33,240 in 2006) Sectorllndustry Manufacturing Wood product manufacturing Machinery manufacturing Computer and electronic product manufact , Transportation equipment manufaduring Source: Oregon Employment Deparbnent, 2006 Establish ments Employment Total Payroll 608 20.163 $803.364.749 77 4,717 $195,248,095 56 1,796 $82,575,006 16 1,861 $101,853,344 32 4,359 $135,038,139 Average Pay per Emp. $39.844 $41,392 $45,977 $54,730 $30,979 . . Springfield has access to employees from across the Regjon · 81 % of residents of Springfield worked in Lane County - Springfield: 25% - Eugene: 40% · 79% of workers in Sp~gfield lived in Lane County - Springfield: 29%' - Eugene: 23% Buildable Lands ,Methodology and Work Program ATTACHMENT,1 - 6 SCT Steering Committee, 9/27/00 6 ~ The structure of Springfield's economy is similar to the County · Springfield had 1,819 firms with 27,310 employees hi 2006 · The sectors with the most employment are similar to Lane County Government Accomm. & Food Services Admin. & Waste ~ Manufacturing Health Care & Social Assist Retail Trade 0% 5% 10% 15% 20% Pun:ent of EmDlovment . Springfield m Lane Counly Source: Oregon Employment Department, 2006 '. A health care cluster is developing in Gateway at the RiverBend campus · RiverBend will have 'about 3,500 jobs at the hospital, medical offices, and associated offices · Potential for additional development at RiverBend and in Gateway - Medical offices - Research and educational functions for collaboration with OHSU and the U of 0 - Senior housing (assisted living or nursing facility) - Other residential, commercial and office, and retail Buildable Lands Methodology and Work Program SCT'Steering Committee, 9/27/00 7 ATTACHMENT'.1 - 7 . . International and National Trends Affecting Springfield's Future Growth Buildable Lands Methodology and Work Program ATTACHMENT,' - 8 SCT Steerjng Committee, 9/27/00 8 High-quality natural resources will continue to be important · Agriculture and forestry will continue to be important in the regional economy · Natural resources will be important for access to recreation and maintaining' environmental quality .. The affects of energy price increases are difficult to predict · Short-term: change in discretionary driving, use of alternative fuels and transportation methods · Long-term: relocating from outlying areas to more urban areas and/or change in commuting patterns Buildable Lands Methodology and Work Program seT Steering Committee, 9/27/00 9 ATTACHMENT'.1 - 9 The ~pact of global climate change on the Pacific Northwest is difficult to predict · Increasing frequency and intensity of floods and droughts · Changes in the global economy that change demand for particular products · In~migration from drier areas - Within the U.S. - International immigration . . Areas for Potential Growth in Springfield Buildable Lands Methodology and Work Program ATTACHMENT,1 - 10 SCT Steering Committee, 9/27/00 10 Oregon's Clusters Figi1iel Oregon's statewide Traded Clusters ! ! " i .c u ~ ! E ! AftnIge __ en.,. 200Ma Source: OECDD . . Lane County's clusters are similar to Oregon's clusters Larger Clusters · Communication Equipment · Information Technology (Software) · Metals (Wholesalers) · Processed Food and Beverage , · Wood & Forest Products · Transportation Equipment Smaller Clusters · Agricultural Products · Business Services · Electronic & Advanced Materials (Semiconductors) · Logistics & Distribution · Medical Products Buildable Lands Methodology and Work Program. SCT Steering Committee, 9/27/00 11 ATTACHMENT,1 - 11 Service sectors have the most growth potential in Springfield Sectors with most growth potential are: - Health and Social Assistance - Admini~trative and Support and Waste Management Services - Construction - Accommodations and Food Services . . , Economic Development Priorities: Discussion Buildable Lands Methodology and Work Program ATTACHMENT, 1 - 12 seT Steering Committee, 9/27/00 12 tD o 4 f')' o o N Cb m - - ('Q .c o - c en E ~ 'a E w )> ... ... D) n ::r 3 CD :1 ... J\) I ..a" - I Fioure 1 ~ Oregon's Statewide Traded Clusters tr,aQsportatibnl;qUIpn1eot&, Parts (2,1'~613)?$39,'1~ tSize of circles co"esponds~h employmenrtotals/h parel1the$/s Medical Products (4.878):$41,..766 BusiQess ServiCes ,(za,g72j: s46~903 Apparel 8t"Spo~ing Goods. "(11,651;): $79,512 + , :~gl1dJltU~1 proauttsc (35)'11):; processed"Foodf& Beverages 6 (3Z)~~Ol):,~;c1,,01 .L. ElectrofUc.&Advaneed Materials '(54.015r'$78~485 -'"' 20%t: ,2 0/0 irlforrnation Technology. (20;''tr16): $65.128 Communication Equipment (6,a88): $68~Q76 Wood"&. 'Other Forest PrOducts' (61,358 ):,,$4'1, lt2 Metits {30.604):$49,273 ~ ,Souri::e: Bureau oftabot Sta1istes.OCEW~'~tmp"f-!rit~ef'rt:OECDO Average Wage Change 2003-05 .. o (' f ---/~ l~ 1 1 ~-- 0 '\ 8 ~ \ o \. o o 'oQ 0 @ !o; ~~~- ... \ \'.< CD I .1 I / 'j'......... !/.{ ~'oa,,*;,.t~~ __~o_ 0 ,0 I '\, 01 -CJ;;, o~ ,... .J " I 1 0 o o ~..J li~\ , /0 h: \~~ )~.: 0 "-.\::- C ~~-",~~~.............., o -......."\,'" ')~.~- B) "1:)1 ~' ~:g;} o ,.-_,-'------..--e,-"...--'..l /-C\"-:=~~J"~~>-' _,,_~' i I I ,___ ....,; 'I ,--..j \ 'l._ --l I I '~ lL"I'~~-~: "\{ "j,:-j "-----............. "1 1\ ,-_/ .,' _..~ '\, \~:,..,. ~'"....,-,,--~,.,'......-_... l \ \ ,.r~~-.-~j"'.......-....\ l_ "\\.., ( )"..-'. ''l.....c.......~ j_._~,.::<=-~~.) // l /' .....'..-.,_.._...,~~> '\, "\, />~..;,-?~''''i \', -", .j' .~.-\. ,// \ ",'" ~\ -,'- -, ' / \ ']'v.l L,~ , I { t'-"" \ \, \,' \ ..,\ \\\ -,\ ""'~"'-~ \, (I} J \ i \..., \\ \ ..,..---""\ (\'.. ...... \ Springfield 2006 City of Springfield Oregon Legend City Limits o Urban Growth Boundary Industrial 0-25 o 0 26 - 100 . 101-300 . 301 - 1000 - 1001 - 5000 Other 0-25 0 26 - 100 . 101 - 300 . 301 - 1000 - 1001 - 5000 ( ECONorthwest, April 2008 !' - .