HomeMy WebLinkAboutItem 01 Economic Development Update AGENDA ITEM SUMMARY Meeting Date: 4/22/2019
Meeting Type: Work Session
Staff Contact/Dept.: Courtney Griesel/CMO
Staff Phone No: 541-726-3700
Estimated Time: 40 Minutes
S P R I N G F I E L D
C I T Y C O U N C I L
Council Goals: Provide Financially
Responsible and Innovative
Government Services
ITEM TITLE: ECONOMIC DEVELOPMENT PROGRAM AND PROJECT UPDATE AND
DISCUSSION
ACTION
REQUESTED:
Following the brief update, Council might provide direction and feedback on program
efforts, significant events, and prioritization of current and anticipated projects
ISSUE
STATEMENT:
The City of Springfield Economic Development Program currently manages city-wide
business retention, expansion, recruitment, and special projects and partnerships
specific to supporting and growing the Springfield economy. The program facilitates
the administration of the Springfield Community Enterprise Zone, Downtown and
Glenwood Urban Renewal Areas, the Downtown Loan Program, Systems Development
Charge Payment Program, development process advocacy, economic development
oriented partnerships and grants and supports efforts focused on growing transient room
tax revenues.
The intent of this memo is to provide an update on economic development program
strategic efforts and progress. Additionally, information is provided on ongoing and
emerging special projects for City Council discussion and guidance for prioritization
and strategy.
ATTACHMENTS: ATTACHMENT 1 – Economic Development Program and Project Briefing Memo
ATTACHMENT 2 – Economic Development Program Strategy Update
DISCUSSION/
FINANCIAL
IMPACT:
The attached briefing memo and update documents provide summarized updates and
overview of past, current and future economic development opportunities and
initiatives. It is the intent of this memo to provide Council input and direction into
economic development program future prioritization of efforts. Included in the
discussion are three core topics;
Update and overview of the Economic Development Program,
Sampling of significant events and accomplishments in Springfield attributed to
Strategic Economic Development Program efforts, and
Identification of current and anticipated projects which Council might provide
direction and prioritization of.
Staff will provide a brief high level presentation of the above topics and prioritize time
for Council discussion and questions related to program efforts, outcomes and identified
projects.
M E M O R A N D U M City of Springfield
Date: 4/22/2019
To: Gino Grimaldi COUNCIL
From: Courtney Griesel, Economic Development Mgr BRIEFING
Subject: Economic Development Program and Project
Update and Discussion
MEMORANDUM
ISSUE:
The City of Springfield Economic Development Program currently manages city-wide business retention,
expansion, recruitment, and special projects and partnerships specific to supporting and growing the Springfield
economy. The program facilitates the administration of the Springfield Community Enterprise Zone, Downtown
and Glenwood Urban Renewal Areas, the Downtown Loan Program, Systems Development Charge Payment
Program, development process advocacy, economic development oriented partnerships and grants and supports
efforts focused on growing transient room tax revenues.
The intent of this memo is to provide an update on Economic Development Program efforts and accomplishments.
Included in the discussion are three core topics;
Update and overview of the Economic Development Program,
Sampling of significant events and accomplishments in Springfield attributed to Strategic Economic
Development Program efforts, and
Identification of current and anticipated projects which Council might provide direction and prioritization
of.
COUNCIL GOALS/
MANDATE:
Provide Financially Responsible and Innovative Government Services
BACKGROUND:
In late 2017, the Springfield City Council approved the first
economic development strategic work plan. The effort of
drafting and refining this work plan was facilitated through the
‘Springfield look,’ a process of engaging City, business and
community leaders in defining action areas.
The strategic work plan intentionally focuses efforts on traded-
sectors and factors of importance to traded-sectors because they
yield the largest economic impact for our community. By
growing traded-sectors, external money and resources flow into
our community to residents and small business.
UPDATE AND OVERVIEW OF ECONOMIC DEVELOPMENT
PROGRAM
The Springfield Economic Development program, through the
2017 Springfield look project, identified four target industries;
Advanced timber products manufacturing, craft food and
beverage, technology, and medical technology. The target
traded-sector industries are reflective of both future goals and
also existing significant economic footprints within the Source: IMPLAN ES202 data, Bureau of Labor Statistics Employment 2015
Attachment 1, Page 1 of 6
community. Industry location quotients (LQs) quantify the relative ‘concentration’ of an industry compared to other
areas within the United States. A LQ of zero indicates that a particular region is no more or less likely to host an
industry than any other region. Where an area has a concentration of industries at a higher LQ, the area is
demonstrating an area of industry density, or specialty. The Springfield identified target industries are, primarily,
reflective of industries with high local LQs, illustrating that Springfield already offers existing infrastructure,
workforce, supply chains, and opportunities to facilitate successful operation and growth within these industries.
The Springfield Economic Development program work plans and efforts are categorized into three strategic
initiative categories in order to most effectively facilitate delivery of services and balance of a varying array of
topics and projects;
Enhancing City Competitiveness on things in direct control of the City of Springfield through;
Proactive Business Outreach to intentionally drive economic growth into Springfield through;
Influencing the development of high-value Springfield Assets external to city government and important to
traded-sector business;
An overview of work and progress within the program is provided in Attachment 2, including updates on specific
work plan strategies.
SIGNIFICANT EVENTS, OUTCOMES AND ACCOMPLISHMENTS
Significant events and accomplishments listed below are those which the City of Springfield Economic
Development Program had/has a direct role in providing technical leadership or assistance.
Glenwood North Riverfront. Developing the Glenwood Riverfront project area and site infrastructure to
connect the community to the river is a continued Council directed priority initiative for the City of
Springfield. Assembly of key parcels was completed in Fall of FY19. Over the next nine months, the City
will work with Farkas Consulting to craft and issue a Request for Qualifications to redevelop the riverfront
reflective of the Glenwood Refinement Plan vision.
Glenwood Mass Timber Parking Structure. The North Glenwood Riverfront Redevelopment Area will
one day be home to what may be the first Mass Timber Parking Structure in North America. In FY18, in
partnership with TallWood Design Institute and VirtuLab (formerly Oregon BEST), staff completed a
necessary and internationally monitored seismic test to support an innovative cross-laminated timber
rocking sheer wall system. The test was viewed as a success, proving examples of innovation within the
advanced timber manufacturing industry. In fall and winter of FY19, further project testing was completed
with TallWood Design Institute specific to durability of driving and exposed surfaces. The results of this
testing provided guidance and preferred systems and products specific to coatings, materials, sourcing, and
construction and application methods. Additional research will be needed specific to defining and testing
ongoing building operation and maintenance. The structure has served as a national and international focal
point for industry leaders around the world, focusing positive attention and interest on Springfield’s
advocacy for the wood products industry and also toward the opportunity Glenwood Riverfront
Redevelopment site. The designs and testing outcomes will be included in the Riverfront RFQ efforts.
Glenwood Fairfield Inn & Suites and Tru Hotel. A third Glenwood area hotel project broke ground in
FY19. Anticipated for opening late FY20, this hotel will be the third hotel opened within the Glenwood
Urban Renewal Area since the formation of the district. The property will be directly adjacent to the
Candlewood Suites, completed in 2014, and the Fairfield Inn & Suites Marriot, completed in FY18.
Property was previously acquired by the Springfield Economic Development Agency/Glenwood and
assembled for $700,000, which enabled the City to obtain needed stormwater areas, and complete phased
sale (2013 Point of Sale: $160k, 2015 Point of Sale: $600k) and now redevelopment of the site. Prior to the
SEDA led acquisition and sale, annual tax revenue generated by the site was just over $2,700. Tax
increment to the Glenwood urban renewal area contributed by the site now exceeds $200,000 annually and
Attachment 1, Page 2 of 6
includes impacts from new transient room tax attributed to the nearly 300 rooms.
Franz Bakery. Franz Bakery (owned by United States Bakery) moved forward in FY 18 with the selection
of their Springfield-Glenwood site as the location for their next substantial company investment. The
determination to invest in the Springfield bakery was supported by the City with the use the Springfield
Community Enterprise Zone extended abatement. The project began and completed construction in FY 19
with the first loaves of their organic and ‘clean’ product, Naked Bread, delivered to local and national
grocers this past February. The $20 million facility expansion increased their facility to over 200,000 sf
from the current 150,000 sf, added 45 new full time employees, bringing total employment at their
Glenwood site to 259 full time employees. Following the final year of enterprise zone authorization on the
project (year 2024), the site is anticipated to contribute an estimated $195,000 in its first year in new taxes
to the Glenwood Urban Renewal area.
Swanson Lumber Mill Rebuild. The Swanson’s Group mill rebuild continues to be an example of
Springfield’s incredible will and innovation. The rebuild, following a devastating 2014 fire, was completed
and back in production by 2016. The mill continues to add state of the art equipment and jobs, showcasing
one of the highest technology manufacturing facilities on the west coast. 2018 and 2019 saw the
construction and installation of additional presses, a high-tech poly-fill line, and a brand new office facility.
The site, in total, includes a 330,000 sf veneer plywood layup operation, over 200 employees, and an
investment estimated at over $55 million in facility and equipment. The site is a beneficiary of the
Springfield Community Enterprise Zone which provided a 5-year extended property tax abatement. The
first non-exempted property tax year will be 2022. Additionally, in the past 12 months, Swanson’s has
actively partnered with the City and regional partners on efforts to showcase and celebrate the most
advanced plywood manufacturing facility in North America, hosting student tours, partnering in
community-wide promotions, and leading industry conversations.
Umpqua Dairy. Umpqua Dairy will begin construction on a new mid-Springfield facility in 2019. The
Economic Development Program has been in discussions with Umpqua since 2014. The project, which is
benefitting from the Springfield Enterprise Zone, will include new facilities and taxable value for
distribution and office spaces and 20 full time employees. Prior to the project, property taxes on the site
were $4,700 annually. Following the completion of the project and enterprise zone abatement, estimated
property taxes received from the project will be $34,500.
PacificSource Health Plans and Symantec. Current Springfield employer, Pacific Source Health Plans
completed acquisition of the previous Symantec Gateway area campus in FY19. This acquisition was
supported by early efforts of the Economic Development Program to engage and partner with Symantec to
make the site available, actively promoted and receptive to market appropriate opportunities for active
use/lease/sale. The ultimate buyer, PacificSource, has since made a substantial investment in our region,
with plans to occupy the site as the regional headquarter and making remaining spaces available for world-
class campus-industrial/multi-tenant opportunities. Currently, the site is now home to four world-class
companies, including Wayfair.
Wayfair. Wayfair,will be opening doors on a 600+ customer service facility in mid-2019. The national
online retailer provides interactive customer service and technology in delivering home goods and décor to
consumers around the world. The project was supported by the City of Springfield, regional partners, the
State of Oregon, and the site owner and was successfully recruited to Springfield by the Economic
Development Program utilizing hands-on development/permitting advocacy and enterprise zone. The new
facility will be located within the new Pacific Source (previously Symantec) campus and is estimated to
add $60M+ in new wages to the local economy over the next 5 years.
Brownfields Grant. Springfield is an active regional partner in the EPA funded Brownfields Grant.
Currently, staff are in active partnership with five separate property/site owners to complete Phase I, and
Phase II when appropriate, environmental assessments. These assessments are typically required for by
Attachment 1, Page 3 of 6
financial and development organizations in order to redevelop sites. The current sites under assessment
include high-value redevelopment land and sites which are attempting to transition from previous service
and auto uses to retail/food and beverage uses.
Systems Development Charges. Systems Development Charges (SDC) assessed and charge to a new
development or redevelopment project continue to be perceived as a barrier by developers and owner-
operators. The Economic Development Program oversees the SDC Payment Program, an effort to remove
up-front development barriers and incentivize investment in the Glenwood and Downtown Urban Renewal
Areas. To date, $1.2M in SDC payments have been made by SEDA on behalf of 18 Glenwood and
Downtown Area projects. Projects have included hospitality, manufacturing, restaurant and retail, and
limited office and residential. The SDC Payment Program has served as an underlying, catalytic resource
for the majority of new development and redevelopment projects throughout both urban renewal areas.
Building Loan Program. The first SEDA Downtown Building Loan Program approved the first loan in
FY19, for the downtown expansion of Swallowtail Spirits into property located at 111 Main Street.
Previously an auto-mechanic use, the 1:1 loan was made in the amount of $125,000 for taxable
improvements to redevelop the site as a specialty distillery with onsite kitchen and retail/dining. The
project is anticipated to be completed early in FY20 (Summer 2019).
Springfield Community Enterprise Zone. Currently, the City of Springfield Enterprise Zone Program is
managing 9 active enterprise zone authorizations with a total estimated direct impact to the community by
EZ companies of over $180M in new property and equipment investments, 660 new jobs created, 760
existing area jobs retained, and over $60M in annual direct wages paid. This does not include indirect jobs
and services created within Springfield as part of supporting EZ companies. Annual foregone property
taxes for the coming FY 20 attributed to the EZ property tax abatement program is estimated to be $3.3M.
Enterprise/E-Commerce programs generate direct revenue to the City of Springfield through negotiated
extended abatement agreements. Revenues received by the City for FY19 attributed to active extended
abatements totaled $100,000. That total will increase to $121,700 in FY20. Benefits to the local property
tax base are felt in the year(s) following the ending of a company’s abatement window, when
improvements made as part of an e-zone designation are brought back on to the tax rolls.
PROJECTS AND SPRINGFIELD ASSET DISCUSSION
In addition to ongoing implementation of economic development strategies, multiple special projects exist. Projects
are listed here for Council discussion and direction. In addition to the projects listed generally here, Council may
identify additional projects or topics to discuss within this context, providing staff overall direction for
prioritization of resources.
Glenwood North Riverfront Redevelopment: The acquisition of key opportunity parcels was completed by SEDA
in early FY19, marking a milestone for over 10 years of effort to assemble critical north riverfront area identified as
a catalytic location by the City of Council and Springfield community. This acquired land totals nearly 10 acres,
includes contiguous Franklin Blvd and Riverfront acreage, provides necessary access for neighboring properties,
and will be the home of the future Mass Timber Parking Structure. The acquired properties are planned for a formal
request for proposal (rfp) process scheduled for early FY20 with promotional efforts planned for the end of FY19.
The project will boast a mix of use which prioritizes housing, hospitality and commercial with a focus on
expanding access to the riverfront.
Anticipated City Funding Impacts: Urban Renewal, Stormwater, Transportation, Transient Room Tax
Anticipated Timing: FY19 Promotion, FY20 RFP, FY21 Negotiations and Site Planning
Franklin Blvd Phase II: Phase II of the Franklin Blvd reconstruction has yet to be formally defined or completed.
Transportation staff continues to focus resources towards the effort in preparation for funding, design and
construction. The completed reconstruction would require future right of way acquisition and could extend to the I-
Attachment 1, Page 4 of 6
5 bridges.
Anticipated City Funding Impacts: Urban Renewal, Stormwater, Transportation
Anticipated Timing: Unknown
Glenwood Riverfront Path Project: Development and Public Works continue to work on efforts to design the
Glenwood Riverfront Path. This project, should it be championed/funded by the City of Springfield/SEDA, might
be eligible for yet to be identified federal funding. In order to received federal funds an extensive National
Environmental Policy Act (NEPA) process will be required and is in beginning phases. This public process will be
required for future phases should the City take the lead in path property acquisition and construction.
Anticipated City Funding Impacts: Urban Renewal, Transportation, Stormwater
Anticipated Timing: NEPA Process Might Begin in 2019
Indoor Track and Field Facility: The proposed Indoor Track and Field Facility is envisioned for development in
Glenwood area due to its potential for high visibility, proximity to the University of Oregon, and potential for larger
contribution to the revitalization of Glenwood. In April of 2018, City Council approved the use of transient room
tax dollars to fund the initial conceptual drawings of the facility, reflecting an indoor facility boasting flexible
multi-sport spaces, state of the art track and field technology, and robust spectator capacity.
Anticipated City Funding Impacts: Transient Room Tax, Urban Renewal
Anticipated Timing: Unknown
Springfield Convention/Conference (CC) Facility: Need for convention and conference facility space has been a
consistent topic throughout the region. In addition to the physical meeting space needs, an attached, full-service
large scale hotel to support conferences and conventions is an equally important variable to the effectiveness of a
proposed convention facility. For this reason, discussions around the need for CC facilities consistently involve
existing and prospective private hospitality developers. Private hospitality industry leaders have indicated that fiscal
participation by the City of Springfield to support a CC facility would be requested/needed in order to facilitate a
project to completion. Based on this feedback, in 2018, City Council communicated a desire to explore the
feasibility of a CC facility in Springfield and requested funding support for this work from Travel Lane County.
This feasibility work would require site specific analysis and partnership with site owner s. This partnership has not
yet been pursued and feasibility work has not begun.
Anticipated City Funding Impacts: Transient Room Tax, Urban Renewal (site dependent)
Anticipated Timing: Unknown
Booth Kelly Business Park: The Booth Kelly Business Park is located in the heart of Downtown Springfield and is
under the ownership and management of the City of Springfield. Originally home to the first Springfield lumber,
Booth Kelly is now home to 17 companies. In addition to the nearly $530,000 received annually from leases on the
site, the facility acts as the trailhead to the recently completed Springfield Millrace Path and open space areas.
Booth Kelly is currently fully occupied, with the only remaining spaces under current utilization by the City of
Springfield for storage and City property. Extensive deferred building maintenance and facility improvement
activities will be required within the next three to five years in order to keep the facility operational. This timing
may provide an opportunity, should the Council desire, to assess the opportunity improve the facility under the
current use and programming or shift the use and programming to reflect a new, yet to be defined, Council vision.
Anticipated City Funding Impacts: Booth Kelly fund, Urban Renewal
Anticipated Timing: Unknown
Carter Building: The Carter Building in Downtown is currently home to manufacturing, technology, and
government services businesses. The facility has long been envisioned as the future home for a new Springfield
Library facility but recent Council direction may suggest the site will remain as a multi-tenant office facility for the
near to mid future (next 10 years). With substantial deferred maintenance on mechanical and structural systems, the
Carter Building will require investment in the coming 18 to 24 months. This investment and timing may provide an
opportunity to re-envision active use of the space and the modeling of redevelopment ideas and visions of the City
Council and potentially Springfield Economic Development Agency.
Attachment 1, Page 5 of 6
Anticipated City Funding Impacts: Booth Kelly fund, Urban Renewal
Anticipated Timing: Unknown
138 Main Street Commercial Bldg: Following the completion of the 2010 Downtown District Urban Design Plan,
the Springfield Economic Development Agency acquired property located at 138 Main Street. This property was
intended to fulfill the Plan identified ‘Mill Plaza’ concept. The ‘Mill Plaza’ was envisioned as ‘a paved multi-use
space intended to be active 18 hours a day.’ Additional acquisition of properties to the east and west of the SEDA
owned site would also be required to construct the plaza. Since the acquisition of the property, the City has actively
maintained tenants in the space while making minimal capital investments in anticipation of future removal of the
site. Currently, the facility is home to Fertilab/RAINEugene, who maintains and occupies the space. With support
of regional grant funding, Fertilab has indicated an interest in understanding if improvements and redevelopment of
the site might be an option.
Anticipated City Funding Impacts: Urban Renewal
Anticipated Timing: Unknown
SUMMARY: The overview of economic development accomplishments and efforts are provided as context and
updates of progress. Ongoing and future anticipated projects are included with high level information as a
mechanism for Council discussion and prioritization should it be deemed appropriate. The projects listed are those
which staff are aware of but are not intended to limit the discussion in any way.
RECOMMENDED ACTION:
Staff looks forward to providing a brief update of efforts and progress within the Springfield Economic
Development Program and providing information and opportunity to hear from Council regarding their vision for
resource investment in current and anticipated city-wide special projects.
Attachment 1, Page 6 of 6
SPRINGFIELD
ECONOMIC
DEVELOPMENT
STRATEGY
EXECUTIVE SUMMARY
MARCH 2019 UPDATE
March 2018 City of Springfield, Oregon
Attachment 2, Page 1 of 14
March 2019 Update Springfield Economic Development Strategy
I. PLAN PURPOSE
The purpose of the City of Springfield’s Economic Development Strategy is to define a clear plan of action for
City staff to make the greatest impact on influencing Springfield’s economic growth. This strategic plan
intentionally focuses efforts on traded-sectors and factors of importance to traded-sectors because they yield
the largest economic impact for our community. By growing traded-sectors, external money flows into our
community to residents and small businesses.
WHY THIS WORK IS IMPORTA NT TO SP RINGFIEL D
The goal of the Springfield Look Plan is to improve the lives of Springfield’s citizens by increasing the per
capita income and the number of family wage jobs in Springfield while providing the tools to reduce poverty
in our community. We are motivated by the understanding that the economic vitality of Springfield and the
financial health of its public agencies are linked to healthy population growth and the number of quality jobs
available in our community.
II. STRATEGIC INITIATIVES
The Springfield Economic Development Strategy addresses three main areas of work:
1. Enhancing City Competitiveness on things in direct control of city government;
2. Influencing the development of high-value Springfield Assets external to city government and
important to traded-sector businesses; and
3. Proactive Business Outreach to intentionally drive economic growth into Springfield.
CITY COMPETITIVENESS
WORLD-CLASS
DEVELOPMENT SERVICE
MINIMUM DEVELOPMENT
STANDARDS
STRATEGIC DEVELOPMENT
OF PRIORITY SITES
FORMALIZE BUSINESS
INCENTIVES
SPRINGFIELD ASSETS
INNOVATION HUB
SPRINGFIELD
TELECOMMUNICATIONS
ENHANCEMENT PROJECT
REAL ESTATE PRODUCT
DEVELOPMENT
PARTNER ECONOMIC
DEVELOPMENT TEAM
BUSINESS OUTREACH
BUSINESS RETENTION &
EXPANSION
INDUSTRY CONFERENCE
RECRUIT TARGET
INDUSTRIES
Attachment 2, Page 2 of 14
March 2019 Update Springfield Economic Development Strategy
CITY COMPETITIVENESS
There are many factors where a community competitively supports the needs of a growing business. The
following four strategic initiatives focus on factors within the direct control of city government:
World-class Development Service
Minimum Development Standards
Strategic Development of Priority Sites
Formalize Business Incentives
WORLD -CLASS D EVELOPMENT S ERVICE
Goal
Provide world-class service through the development approvals process in a consistent fashion that clarifies
and expedites the development process. We aim to reduce the timeline for approvals by 1/3 to 1/2 the
amount of time we currently process. We aim to demystify the process to quickly resolve conflicts. Not only do
we strive to perform better and more thoroughly; we want to do a better job touting what we do well.
We want to achieve continuous improvements for City services to identify and resolve potential problems
before they occur.
March 2019 Update
The Springfield Development and Public Works Department continues to undergo restructuring and leadership
shifts. This initiative strategy has been ‘tabled’ within DPW while they recruit for new department leadership.
During this time, Economic Development staff have filled the role of ‘advocate’ on several key development
applications. Examples include efforts on Marcola Meadows, numerous north Gateway hospitality and
commercial sites, and in Downtown. Advocacy efforts include performing regular/weekly check-in calls with a
prospective development, facilitating preliminary staff meetings, and providing support or insights into
process and opportunities.
Tactics
1. Identify organizational culture for customer
service
2. Assess current situation
3. Best Practices Research competitors and
aspirational cities for development approvals.
4. Clarify Process and Timeline
5. Establish Advocate
6. Train on Process
7. Take to Market for Input
8. Summary of Report Decisions
9. Build Relationships
10. Document Springfield Case Studies
11. Continued, Ongoing, Improvement
12. Organizational Culture for Service
Initiative lead organization(s)
City of Springfield, Development and Public Works
Attachment 2, Page 3 of 14
March 2019 Update Springfield Economic Development Strategy
M INIMUM D EVELOPMENT S TANDARDS
Goal
Revisit and examine existing standards and triggers required via Minimum Development Standards.
March 2019 Update
The Springfield Development and Public Works Department continues to undergo restructuring and leadership
shifts. This initiative strategy has been ‘tabled’ within DPW while they recruit for new department leadership
and complete organizational changes. During this time, Economic Development program staff are
participating in the Development Code rewrite project and continue to provide input and resources by
staffing Development Issues Meetings when appropriate and participating with the Systems Development
Charge SEDA program. Additionally, the Economic Development Program has begun to research other
communities and process in the category of development advocacy and customer service to provide
benchmarking and potential solutions for evaluation by DPW and Council.
Tactics
1. Internal Review
2. Assessment
3. Benchmark to aspirational communities
4. Solutions
5. Council Direction
6. Public Input
7. Codify changes with City Council Approval
8. Take to Market
Initiative lead organization(s)
City of Springfield, Development and Public Works
Attachment 2, Page 4 of 14
March 2019 Update Springfield Economic Development Strategy
S TRATEGIC D EVELOPMENT OF P RIORITY S ITES
Goal
Strategic opportunity enhancements for priming development at Glenwood Urban Renewal District and other
priority employment lands with near-term development (3 – 5 years) for traded-sector businesses.
March 2019 Update
An array of current sites throughout the city have maintained patterns of consistent interest from prospects and
activity of the current property owners. These sites range from world-class office buildings, bare land, and
heavy industrial sites facilities. Identified priority sites are those sites which are ‘shovel ready’ (reasonably
developable within 90 days) and are; under City ownership or with willing and active site owners sharing
aligned desire to reach ‘shovel ready’ status with their site, desirable to target industries and prospects,
currently zoned for maximum opportunity and located within city limits or easily annexed/served. Initial site
readiness assessment efforts have identified needs and barriers resulting in strategic efforts to promote and
update infrastructure. Successes thus far include;
A. Completed land assembly of Glenwood Riverfront North Property Fall of 2018
B. Strategic utility upgrades and improvements on the Sierra Pine mid-Springfield industrial property
C. Sale and improvements of previous Six States industrial property
D. Sale and leasing of previous Symantec owned building
E. Adjusted strategy efforts for Marcola Meadows property
F. Facilitated five environmental site assessments utilizing EPA Brownfield Grant funds
Attachment 2, Page 5 of 14
March 2019 Update Springfield Economic Development Strategy
Additional efforts to assess and resource if applicable continue to be pursued in partnership with property
owners.
Tactics
1. Identify Sites
2. Site Owner Relationship Building
3. Site Readiness Assessment
4. Industry Needs
5. Identify Barriers
6. Resources for Site Enhancements
7. Assemble Land
8. World-class Development Service
Initiative lead organization(s)
City of Springfield, Economic Development
Attachment 2, Page 6 of 14
March 2019 Update Springfield Economic Development Strategy
F ORMALIZE B USINESS I NCENTIVES
Goal
Clearly defined business incentives that are intentional and strategically utilized to locate and expand
traded-sector businesses in Springfield, while responsibly providing beneficial return-on-investment for
Springfield’s economic and fiscal growth.
March 2019 Update
Business support and incentives available through the City and business partners are currently being
inventoried for inclusion in upcoming developed Economic Development webpages. Resources are categorized
by those which are administered by the City and those managed by community partners. Updates are
provided below regarding current City managed incentive programs. Community partner resources will
continue to be inventoried and included of the initiative to formalize the process, branding, and promotion of
incentives;
CITY OWNED BUSINESS RESOURCES/INCENTIVES
Enterprise Zone Program: the City of Springfield Enterprise Zone Program is managing 9 active enterprise
zone authorizations with a total estimated direct impact to the community by EZ companies of over $180M in
new property and equipment investments, 660 new jobs created, 760 existing area jobs retained, and over
$60M in annual direct wages paid. This does not include indirect jobs and services created within Springfield
as part of supporting EZ companies. Annual foregone property taxes for the coming FY 20 attributed to the
EZ property tax abatement program is estimated to be $3.3M.
Urban Renewal Area Systems Development Charge Payment Program: Systems Development Charges
(SDC) assessed and charge to a new development or redevelopment project continue to be perceived as a
barrier by developers and owner-operators. The Economic Development Program oversees the SDC Payment
Program, an effort to remove up-front development barriers and incentive investment in the Glenwood and
Downtown Urban Renewal Areas. To date, $1.2M in SDC payments have been made by SEDA on behalf of
18 Glenwood and Downtown Area projects. Projects have included hospitality, manufacturing, restaurant and
retail, and limited office and residential. The SDC Payment Program has served as an underlying, catalytic
resource for the majority of new development and redevelopment projects throughout both urban renewal
areas.
Downtown Building Loan Program: The Downtown building improvement loan was SEDA approved and
initiated in 2018. The first loan was approved in FY19 for the downtown expansion of Swallowtail Spirits into
property located at 111 Main Street. Previously an auto-mechanic use, the 1:1 loan was made in the amount
of $125,000 for taxable improvements to redevelop the site as a specialty distillery with onsite kitchen and
retail/dining. The project is anticipated to be completed early in Summer 2019.
Brownfields Grant Program: Springfield is an active regional partner in the EPA funded Brownfields Grant.
Currently. Grant funds are available on a case by case basis, as approved by the regional coalition, for
project which require environmental assessments and meet multiple criteria including; aligning to area plans
and goals, providing for affordable housing, increasing tax base, or providing for employment opportunities.
Priority is given by the coalition to projects which meet multiple goals and criteria. Springfield staff are
actively managing five separate property/site owners to complete Phase I, and Phase II when appropriate,
environmental assessments. These assessments are typically required for by financial and development
organizations in order to redevelop sites. The current sites under assessment include high-value redevelopment
land and sites which are attempting to transition from previous service and auto uses to retail/food and
beverage uses.
Attachment 2, Page 7 of 14
March 2019 Update Springfield Economic Development Strategy
COMMUNITY/REGIONAL RESOURCES INITIAL LIST
(STAFF UNDERSTAND THAT IS NOT A COMPLETE LIST, MORE PROGRAMS EXIST AND WILL CONTINUE TO BE EXPLORED AND
ADDED)
State of Oregon, Special Public Works Funds
State of Oregon, Special Reserve Funds
Lane Council of Governments Business Loan Programs
LaneWorkforce Partnership Entrepreneurial Training Fund
State of Oregon, Employment Work Source Lane
Springfield Chamber of Commerce #WorkReady Program
Tactics
1. Inventory & Assess Current Incentives
2. Purpose - Define What City is trying to
Achieve with Incentives
3. Review Fee Structure and address Alignment to
Competitiveness Goal
4. Research Other Communities’ Incentives
5. Identify Potential Incentives
6. Conduct Cost-Benefit Analysis of Potential
Incentives
7. Develop and Approval Incentive Policy
8. Comprehensive Incentive Packaging
9. Document Springfield Case Studies of
Springfield Businesses Utilizing Incentives
Initiative lead organization(s)
City of Springfield
Attachment 2, Page 8 of 14
March 2019 Update Springfield Economic Development Strategy
SPRINGFIELD ASSETS
Many factors for competitively addressing the needs of traded-sectors are outside the direct control of City
Hall. Although not in direct control, it is important to influence the improvement of critical factors in order to
strengthen Springfield’s value proposition for companies to locate and grow here.
The following strategic initiatives focus on priority areas for competitiveness improvement outside of City Hall:
Innovation Hub
Springfield Telecommunications Enhancement Project (STEP)
Real Estate Product Development
Partner Economic Development Team
I NNOVATION H UB
Goal
Develop an Innovation Hub providing co-working space, anchor spaces, community meeting room space and
mentoring.
March 2019 Update
City staff provided initial research around varying models of “Innovation Hub” or similar facilities to the
initiative lead, the Springfield Area Chamber of Commerce. Since that time, the Chamber has continued to
discuss the concept with their leadership to determine the ideal time or desired outcome of the initiative.
Tactics
1. Discovery Phase I: Research Models
2. Discovery Phase II: Stakeholder Engagement
3. Feasibility Phase I: Define Scope
4. Feasibility Phase II: Identify Site
5. Feasibility Phase II: Market Assessment
6. Feasibility Phase III: Financial Business Plan for
Management Options
7. Implementation Phase I
Initiative lead organization(s)
Springfield Area Chamber of Commerce
S PRINGFIELD T ELECOMMUNICATIONS E NHANCEMENT P ROJECT (STEP )
Goal
Leverage public assets to facilitate private competition. Public assets can include publicly owned
infrastructure and publicly controlled space (e.g. right of way and public utility easement management,
development standards, communication space on utility and city poles, etc.).
March 2019 Update
In late 2018, Springfield Utility Board awarded a contract for ‘fiber to the home’ services to XS Media to be
piloted in the north Springfield area. This project is expected to result in ‘lit’ fiber later this year, providing
low cost, high-speed, broadband infrastructure to residences. Additionally, SUB is now working to complete
and refine their broadband infrastructure brand and marketing collateral to begin engaging more broadly
with providers and community partners around.
Tactics
1. Enhance Foundation for Political Support 2. Current Situation
Attachment 2, Page 9 of 14
March 2019 Update Springfield Economic Development Strategy
3. Task Force
4. Marketing
5. Engagement with Providers
6. Identify Internet Exchange Options for
Springfield
7. Track Innovation Hub Strategic Initiative
8. Engagement with Property Owners
9. Engagement with Community & Tenants
10. Core Infrastructure Coordination
11. Outreach and education elements
12. Six/Fiber Study Plan
13. Public Build-out Location
Initiative lead organization(s)
Springfield Utility Board
R EAL E STATE P RODUCT D EVELOPMENT
Goal
Increase the number of available (speculative) buildings for target traded-sector industries.
March 2019 Update
The speculative Real Estate product development initiative is targeted to begin in early FY20.
Tactics
1. Criteria and Needs
2. Priority Site Identification for Spec Buildings
3. Outreach to Site Owner and/or Developer
4. Clarity & Communication of Partnership
Criteria
5. Scorecard Site Assessment
6. Develop Concept Design for Site Plan
7. DIM for Virtual or Spec Building
8. Pre-submittal
9. Take to Market
Initiative lead organization(s)
City of Springfield, EcDev
PARTNER E CONOMIC D EVELOPMENT T EAM
Goal
Effectively work with community and regional partners to strengthen our interdependent regional economy.
March 2019 Update
Informal regular meetings have been expanded to include the community partners from neighboring
communities, Lane County, Travel Lane County, the State of Oregon, Springfield and Eugene Area Chambers,
and Sector Strategists, and Lane Workforce Partnership. Meetings occur quarterly and provide an
opportunity for project specific coordination and updates.
Tactics
1. Partner Resources
2. Regular Meetings
3. Protocols
4. CRM Evaluation
5. Common Language and Messaging
6. Value Proposition
Initiative lead organization(s)
City of Springfield, Lane Workforce Partnership
Attachment 2, Page 10 of 14
March 2019 Update Springfield Economic Development Strategy
BUSINESS OUTREACH
Outreach and engagement with both existing local employers and business prospects is the fundamental work
of economic developers.
Business Outreach strategic initiatives encompass:
Business Retention & Expansion
Industry Conference
Business Attraction
B USINESS R ETENTION & E XPANSION
Goal
Local traded-sector employers have confidence in Springfield as the right location for their business to
maintain or grow operations here.
March 2019 Update
From July 2018 to current, Economic Development staff have led over 170 technical company visits with over
60 employers. Technical visits supported plans for expansion, introduction to other community partners,
partnerships for promotion, and gathering of feedback. These visits do not include ongoing responses and
follow-up communications of Economic Development Staff by email or phone. While ongoing communication
does occur, the intent of this measurement is to reflect technical/planned visits.
Tactics
1. Resource Toolbox
2. Industry Intelligence
3. Business Intelligence
4. Customer Service Engagement
5. Proactive Outreach Meetings
6. Proactive, Ongoing Communications with
Springfield Employers
7. Follow-up on Requests
8. External Headquarter Visits
9. Contact Database
10. Informal Industry Meet-up
11. Marketing Springfield Employers
12. Business Appreciation
13. Downtown Business Program
Initiative lead organization(s)
City of Springfield, EcDev
RETENTION AND EXPANSION VISITS BY INDUSTRY
(JULY 2018 TO APRIL 2019
Attachment 2, Page 11 of 14
March 2019 Update Springfield Economic Development Strategy
I NDUSTRY C ONFERENCE
Goal
Hold industry conference in Springfield aligned to industry of focus to add-value for existing employers and
garner attention from business attraction prospects of related traded-sectors.
March 2019 Update
Ongoing efforts are underway to maintain relationships with Mass Timber Conference organizers.
Staff participated in supporting Travel Lane County in the successful recruitment of the Oregon
Economic Development Association Summer Conference to the region. Efforts continue to support
efforts underway by local community members and Travel Lane County to host the Nation of
Makers Conference. A lack of Springfield based conference and meeting facilities with directly
adjacent hotels will continue to limit opportunities for pursuing large conference events/recruitment.
Tactics
1. Conference Information
2. Target Industries
3. Asset Inventory
4. Build Team
5. Industry Focus
6. Research Conferences
7. Conference Location
8. Opportunity Window of Time
9. Bid on Existing Conference (Plan A)
10. Create a New Conference (Plan B)
Initiative lead organization(s)
Travel Lane County, City of Springfield
Attachment 2, Page 12 of 14
March 2019 Update Springfield Economic Development Strategy
RECRUIT TARGET I NDUSTRIES
Goal
Diversify and strengthen Springfield’s economic base with the recruitment of target traded-sector businesses.
Springfield’s target industries, determined in the Springfield Target Industry Analysis report dated, May
2017, include: value-added wood products, technology, specialty food and beverage, and medical
technology.
March 2019 Updat e
Springfield Economic Development staff actively promote Springfield at the national and international market
levels. The development of website pages promoting the community, incentives, workforce and opportunity
sites will be live by the end of FY19, utilizing business cases, real estate relationships, and industry and
competitor intelligence. Additionally, in the last 18 months, the City has participated in 10 competitive
prospect processes, with 5 strategic sites moved to assessment stages, and 2 sites resulting in acquisition or
successful company locating. These successful ‘wins’ are responsible for over 645 new jobs and $54M in direct
new investment into Springfield estimated in FY20. Two projects continue to be in assessment.
Tactics
1. Brand
2. Industry Intelligence
3. Competitor Intelligence
4. City Economic Development Website
5. Industry Business Cases
6. Real Estate Community Relationships
7. Industry Network & Memberships
8. Business Oregon
9. Lead Generation Contract
10. Targeted Marketing & PR
11. External Recruitment Trips
12. Inbound Marketing Events
13. Industry Tradeshows & Conferences
14. Site Selector Relationships
15. Sales & Proposals
16. Site Visits
17. Incentive Packaging and Negotiations
18. Celebrate Company Locations
Initiative lead organization(s)
City of Springfield
Attachment 2, Page 13 of 14
Attachment 2, Page 14 of 14