2018 Economic Report - WordPress

Mike KazmierskiPresident & CEOEDAWN’s Economic UpdateJanuary 25, 2018

The Alliance The Chamber of Commerce – EDAWN – RSCVA Coordinate Efforts Of Business Community Overlap of Businesses And Concerns Success Of One Elevates Business Community The OthersAll Three CommittedTo The CommunityVisitors andConventionsPrimaryEmployers &Start UpsPromoting & Supportingthe Success of allBusinesses

Regional Public / Private PartnersCity of RenoUNRState OfficesNevadaJobConnectCity of SparksTMCC / WNCCity of FernleyDRINevadaworksWashoe CountyThe ChamberNNDAStorey CountyWNDDNV EnergyWashoe CountySchool DistrictNCETReno-Tahoe AirportAuthorityGOEDRTCInvestorsDETRRSCVAMany Others !3

2017 Major InvestorsPresidential Gold: BomboraGold Investors: Aflac Insurance Arrow Electronics Brownstein HyattFarber Schreck, LLP Community Foundationof Western Nevada Dickinson Wright PLLC GTG Capital Partners High Sierra Industries Lewis ApartmentCommunities Meadows Bank Michael D. PeytonInsurance, LLC Moody WeiskeContractors My Ride To Work Neeser Construction Nelson ElectricCompany Sierra Pacific FederalCredit Union Stanton Chase

EDAWN Coin !This Coin Is Presented In Recognition OfExceptional Leadership, Engagement, And /Or Cooperation In Support Of Reno-SparksRegional Economic Development Efforts!

EDAWN 2012 - 2018We’ve Come ALong Way InSix Years!6

2012 Legs Of Economic DevelopmentRetention /ExpansionAttractionEntrepreneurial /Start Up Growth7

Change Has Come To EDAWNEDAWN's Focus – Resources (2012)2011AttractionAttractionEDAWN's Efforts %AttractionRetentionEntrepreneurial Jobs8

EDAWN's Focus – 2012 Planned Evolution201520122011AttractionEDAWN's Efforts %AttractionRetentionEntrepreneurial Jobs9

EDAWN's Focus – The Evolution ContinuesEDAWN's Efforts %AttractionRetentionEntrepreneurial Jobs20202018[CA[CATEG[CA2015[CAO TEG[CA TEGTEG O [CA TEG O [CAO TEG O TEGO O [CA [CA[CATEG TEG[CATEGO O TEGO O Entrepreneurial& TechnologyAttraction10

Economic Development StoolWorkforce DevelopmentAttractionCommunityDevelopmentRetention /ExpansionEntrepreneurial/ Startup Growth11

Monthly Prospects Visits 2011 - 201415Growth From4 to 10 A MonthTesla Announcement1292014 Ave 10.92013 Ave 9.86302012 Ave 7.82011 Ave 4.2

Monthly Prospects Visits 2015 – 2017(Goal 8-10 per month)1612.5 In Last Six Months14122015 Ave 10.510864202017 Ave 10.52016 Ave 9.6

EDAWN Assisted New Jobs 2007-20123,500Our Jobs Goal in 20123,0002,5002,0005 YearAverage1,5001,000500014

EDAWN Assisted New Jobs 2007-2017ActualAssisted Jobs3,5003,0002,5002,0001,5005 YearAverage1,000500015

Unemployed – Now Have Jobs!151311Significant ReductionSince 2011 14.2% to 3.9%Unemployed From 30,731To Now Just 9,487975Full Employment 4.0%316

Pending AnnouncementsIndustryBack otalJob Count HQ Confidence Relocation State120401351171501003003001001,362XXX3Very LikelyVery LikelyVery LikelyVery LikelyVery LikelyVery LikelyVery LikelyVery LikelyVery LikelyNEFLCACAWICACAGACA

Hot Prospects From List of 150 uringTotalJob Count HQ Confidence Relocation CAOHCOTAIWANGASWEDENMICAPACA

2017 Attraction / Expansion Summary 29 Companies – Over 3,300 New Jobs 11 Companies, 577 Jobs Ave Wage 80,594 Record Number of Corporate Headquarters 14 23 of 29 Located In Reno 45% From CaliforniaHeadquarters14 Two International12Dis / Log / E-ComTech / Aero / FinManufacturingBack OfficeGrowing10864206 Yr Ave

2018 Attraction Priorities Higher Paying Jobs 50% More Than 30 / Hr. Reduced Job Goal to 2,500 from 3,200 Corporate Headquarters Technology Companies High State Tax Locations – New Tax Plan Joint Entrepreneurial Attraction Effort Increase Prospect Travel To The Bay Area

Tesla Update! Going Strong! Will Employ 6,500 People (Targeted For 2018)And Eventually As Many As 10,000 Employees Nevadans Average 96 Percent Of TheFull-Time Employee Workforce Model 3 Battery And Drive Unit, TeslaPowerwall And Powerpack, All InProduction At Gigafactory Current Structure Has 5.4M Sq. Ft.Of Operational Space (29% 050,0000TotalSecondaryTesla

Updated Economic Development StoolWorkforce DevelopmentAttractionCommunityDevelopmentRetention /ExpansionEntrepreneurial/ Startup Growth22

EDAWN's Goals – Retention / Expansion Why Is This So Important? Majority Of New Jobs Come From TheExpansion Of Existing Companies Our High Growth Companies Are BeingCourted By Other Communities Efforts To Keep Existing Industry AlsoImproves The Region - So Attraction Is Easier Working With Existing Companies ProvidesConnections And Opportunities For Attraction23

Retention-Expansion-Workforce Visit Primary Companies Introduce To Resources Remove Roadblocks Recognize And Support B2B & B2C Connections Implement Workforce PlanCompany of The YearGrandRounds24

2017 By The Numbers133 Company Visits 58% Are Growing3 Assisted Expansions: 58 Jobs, 23.6M CapEx39 Business To Business Connections41 Companies Recognized @ Industry Awards7 Critical Issues Addressed166 Total Education and Internship Connections150 Educator Meetings / Tours With IndustryCongratulates To the BREWD Team25

Workforce Development ActivitiesRetention NNHRA New Nevada Article Share Monthly Retention Tips EDAWN EU Increase Awareness Of Retention BestPracticesTraining Promote Community College Programs In Support Of High Demand JobsFocus On High School Graduation /EquivalencySupport STEAM26

Workforce Development ActivitiesConnection Backpacks & Pantry BagsEmployer Workforce GuideFill Your Talent Pipeline ManufacturersRTC Bus AdvertisementFood Pantry BagsConnect Partners, Business, Education

Workforce Attraction Activities Ads HospitalityMagazines for Visitors Society of WomenEngineers & Austin CC WhyReno.Org/Who’sHiring: 864 New Users Burning Man Billboard& Giveaways

Where The Talent May Come FromUNRTMCCWNCSacramento State UC DavisCal State Chico Fresno StateSNCSan Jose StateUC BerkeleyCCNNStanfordUC MercedAttract Nearby Talent29

Internships – Are You Involved?7,500 Companies –Only 1,097 InternsIntern Programs TMCC ClinicalInterns Companies17,500 Available Available UNR Pack Grant UNR Academic15,000Credit12,50010,000Opportunity7,500 UNR Career Studio WCSD WNC5,0002,500015,000 Available 7,5001,400 Signed Up 3921,097 Participating 392For Contacts go toEDAWN Employer Workforce Guide

Updated Economic Development StoolWorkforce DevelopmentAttractionCommunityDevelopmentRetention /ExpansionEntrepreneurial/ Startup Growth31

First Few Years Focused OnBuilding A Vibrant Ecosystem Connections Events Marketing Capital MentoringAn EnvironmentWhere Start-Ups CanGrow And InnovationFlourishes32

Entrepreneurial Successes In 2017182 NEW Startup Jobs49 NEW Companies 58 M In NEW FundingReno Attracting High Tech / High GrowthStartups As An Alternative To The Bay Area33

Entrepreneurial Success - Capital6050Capital Raised ByLocal Start-Ups In M403020100201220132014201520162017Capital Is The Rain That Spurs On Growth

Startup / Tech Attraction Efforts Objective: Increase High Wage / High Skill Jobs Focus: Attracting Tech Startups From Bay Area How: Focused National / Regional PR Effort Highly Targeted Direct Marketing Campaign Events Like Venture Beat Blueprint Example Of Successes35

Seed Capital Ecosystem Catalyst Goal: Streamline Access To Capital & Deal Flow Focus: Pre-Seed / Seed Capital ( 2M Funding) How: New Seeds Fund Quarterly Deal Flow Forums Angel Investor Workshops Annual Venture Capital Conference Catalyst: Federal EDA Grant Recipient36

Ecosystem Support / Events Blockchain : Building the New Nevada on TrustFebruary 6th BlueprintNewsweek, Feb. 26, 1995March 5th-7th Angel WorkshopApril 11th Venture ConferenceSeptember 201837

Community Concerns – To Address1. Affordable Housing2. Property Tax Fix – ResetUpon Sale3. 2nd Road To The IndustrialCenter (TRI)4. Downtowns Revitalization5. Brand or Image6. Workforce Development /Talent Attraction38

Our Greatest Challenge Affordable Housing Simply Supply and Demand Issue Not Just Here – But A National Problem Building Fewer Housing Units Than We Need Shortage Drives Up Prices Housing Shortage Impacts: Forces Low Income Citizens Out Increases Homelessness Increases Sprawl And Traffic Can Not Be Solved By Private Sector Alone

EPIC Projection 50,400Jobs In 5 YrsDecember 2015December 2017

Western Nevada Housing ReportNeeds Assessment - 2018 ReportReno-Sparks MSA Annual Employment & Projections

Are We Growing Too Fast?825,000775,000725,000Last 17 Yrs Same RateAs Next 17 Yrs!675,000625,000High Estimate575,000525,000475,000Actual Data425,000EPIC Projections Of Five County Region42

New Housing Units Just Not Keeping UpNew Housing Units10,000ShortageCumulative Housing ShortageActual Vs 10 Year Average8,00010 Year Ave ’97-’07 - 4,9506,0004,00010 Year Ave ’07-’17 – 1,8922,000043

Housing Shortage Drives Up PricesMedian Home Price Vs Affordability350Median Home Price300250200150DecliningOpportunity100500Housing Opportunity Index**National Association of Home Builders / UNR Center for Regional Studies

Lack Of Housing Driving Rental Costs Up! 1,60050% Increase In 3 years! 1,400 1,200 1,0003/2 RentalAverage Rent 8001/1 Rental 600Johnson Perkins Griffin, LLC Apartment Survey 3rd Qr. 2016 Data Reno/Sparks Metro

Housing: 89,195 Planned 43,300 ApprovedNorth Valleys: 23,088Approved: 5,675Sparks: 17,934Approved: 10,019W. Reno: 4,669Approved:1,544S. Reno: 17,405Approved: 6,749Reno Other: 4,723Approved: 2,798Fernley: 4,804Approved: 4,607Dayton Corridor: 16,572Approved: 11,90850,000Approved vsPlanned40,00030,00033% 55% pproved

No Silver Bullet – But Some Ideas Government Financing Supportive Zoning Fee Reduction / Waivers Donated Or Low-Cost Land From Government Local Government Accelerated Approvals Building On Cheaper Lots Building Smaller/Simpler Units Private Sector FinancialAffordable HousingAssistance

Changes City Of Reno ConsideringMayor Schieve: I will be asking the Council tosupport an initiative that would fast track bothaffordable housing and infill developments We must Remain aggressive with polices for:- tiny homes,- accessory dwelling units,- ease on parking restrictions,- allowing for higher density and- alleviating up-front costs for development We believe this will spur more affordablehousing initiatives48

How Can You Help? Acknowledge The Problem – We Are Changing Support/Encourage Government AffordableHousing Solutions – Like Zoning Changes Use Of Government Land Reduction Or Deferral of Fees Approving Developments – Time Increases Costs Don’t Be A “Not In My Backyard” (NIMBY) Support Legislation To Reset Upon SaleProperty Taxes – Local Government Funding

Property Tax Fix - Reset Upon Sale Flawed Tax Structure: Depreciation Of Property Tax Only State In The Nation That Does This! Causes A Systematic Decline Of Funding For LocalGovernments/Schools (1/3rd to Half of Total Revenue) Valuation Market Land – 1.5% Depreciation Exacerbated By 3% Upper Cap and No Lower Cap Will Require Revote By Legislator And Your Vote No One’s Current Property Taxes Will Increase50

Community Concerns – To Address1. Affordable Housing2. Property Tax Fix – ResetUpon Sale3. 2nd Road To The IndustrialCenter (TRI)4. Downtowns Revitalization5. Brand or Image6. Workforce Development /Talent Attraction51

Second Road To TRI? Currently I-80 Is A Single PointOf Failure Major Accidents Daily No Funding Or Approved PlanTo Address This Issue 75% Of TRI Employees LiveNorth Of I-80 In Reno/Sparks Let Elected Officials Know IfYou Think This Is A ProblemThey Should Address?Industrial Center Going From8,000 To 25,000 In Next 10 Yrs52

City of Reno Downtown Action PlanImplementation April 2017

Downtown Management OrganizationWhy a DMO? Stabilize Downtown Streets Create a Public/Private Partnership toChampion Downtown Unified Voice and Accountability Employ National Best Practices in Reno

Business Improvement DistrictBID Formation – Q1 2018 Property Owner Petition– Need Support FromProperty OwnersRepresenting MoreThan 50% OfAssessments City Council Approval –Jan ’18 - BID FormedThrough Ordinance Services Start July 2018