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HomeMy WebLinkAboutAgenda_GEDCO_08.21.2017Notice of Meeting for the Georgetown Economic Dev elopment Corporation and the Gov erning Body of the City of Georgetown August 21, 2017 at 4:00 PM at the City Council Chambers, located at 101 E. 7th Street, Georgetown, TX 78626 The City o f G eo rgeto wn is committed to comp lianc e with the Americans with Dis abilities Ac t (ADA). If yo u req uire as s is tanc e in participating at a p ublic meeting d ue to a disability, as d efined und er the ADA, reas onab le as s is tance, ad ap tatio ns , or acc o mmo d ations will b e provid ed up o n req uest. P leas e c o ntact the City Sec retary's Office, at leas t three (3) days prior to the sc hed uled meeting d ate, at (512) 930-3652 o r City Hall at 113 Eas t 8th Street fo r add itional info rmation; TTY us ers ro ute through Relay Texas at 711. Regular Session (This Regular S es s io n may, at any time, b e rec es s ed to convene an Exec utive S es s io n fo r any p urpose authorized b y the Op en Meetings Act, Texas Go vernment Co d e 551.) A Co nsideration and approval of the minutes fo r Georgetown Ec o nomic Develo p ment Co rp o ration for the Regular Meeting held Mo nday, June 19, 2017--Bill Mateja, Sec retary B Dis cus s ion and pos s ible actio n regarding the Target Indus try and Workforc e Analysis - Mic haela Dollar, Directo r o f Ec ono mic Develo p ment C Co nsideration of the June and July, 2017 financ ial reports . Leigh Wallac e, Financ e Manager, GEDCO, Finance Direc to r, COG D Dis cus s ion and pos s ible actio n regarding the Staff Rep o rt —David Morgan, C ity Manager -P erformance Agreement Report -Rep o rt from Planning -Retail Stud y Update -Activity R ep o rt -Other Pro jec ts E Actio n o ut o f Exec utive Session. Executiv e Session In compliance with the Op en Meetings Act, C hapter 551, Go vernment Code, Vernon's Texas Codes, Annotated, the items lis ted below will be d is c us s ed in closed s es s io n and are s ubjec t to actio n in the regular s es s io n. F Sec. 551.071: CONSULTATION WITH ATTORNEY Co nsultation with attorney regarding legal is s ues related to agenda items and other matters in whic h (1) when the go vernmental body seeks the advic e o f its attorney ab o ut: (A) p ending o r c o ntemp lated litigatio n; o r (B) a s ettlement o ffer; o r (2) o n a matter in which the d uty of the attorney to the go vernmental body under the Texas Dis ciplinary Rules o f P ro fes s io nal Cond uc t o f the S tate Bar o f Texas clearly c o nflic ts with this chap ter - Charlie McNabb, C ity Attorney G Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Dis cus s ion and pos s ible actio n to d elib erate the p urc hase,exc hange, leas e or value of real property for purp o s es authorized b y the Development C o rp o ration Ac t which disc us s io n in o p en s es s io n would have a Page 1 of 114 detrimental effect on negotiations with third pers ons . H Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Delib eratio n regarding commerc ial or financ ial info rmation that the corp o ration has rec eived fro m a bus iness pros pec t that the Georgetown Ec ono mic Develo p ment Co rp oratio n s eeks to have loc ate, stay, or exp and in or near the territory of the City o f Georgetown and with whic h the C o rp o ration is cond uc ting ec o nomic d evelopment nego tiatio ns; and/o r deliberatio n regarding the o ffer of a financ ial or o ther incentive to a bus iness p ro s p ect that the C o rp o ration seeks to have lo cate, s tay, o r exp and in o r near the territory o f the City o f Georgetown. - Downtown Infras truc ture Improvements - TLCC CERTIFICATE OF POSTING I, Shelley No wling, C ity S ecretary fo r the C ity of Geo rgeto wn, Texas , d o hereby c ertify that this Notice of Meeting was p o s ted at City Hall, 113 E. 8th Street, a p lace read ily acc es s ible to the general p ublic at all times , on the ______ d ay o f __________________, 2017, at __________, and remained so p o s ted fo r at leas t 72 c o ntinuo us ho urs p receding the sc heduled time o f s aid meeting. ____________________________________ S helley No wling, City Sec retary Page 2 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Cons id eration and ap p ro val o f the minutes for Geo rgeto wn Econo mic Development Corporatio n fo r the Regular Meeting held Mond ay, June 19, 2017--Bill Mateja, S ecretary ITEM SUMMARY: ATTACHMENTS: 1. Draft Minutes FINANCIAL IMPACT: None SUBMITTED BY: Bill Mateja, C o rp o rate Sec retary ATTACHMENTS: Description Type minutes Cover Memo Page 3 of 114 GEDCO Minutes June 19, 2017 Page 1 of 2 Minutes of the Meeting of the Georgetown Economic Development Corporation and the Governing Body of the City of Georgetown, Texas June 19, 2017 The Georgetown Economic Development Corporation of the City of Georgetown, Texas, met on Monday, June 19, 2017. Members Present: Jeff Parker, Steve Fought, Kevin Kelly, Steve Klein, Valerie Nicholson Members Absent: Bill Mateja, Hugh Brown Staff Present: David Morgan, City Manager/General Manager; Conchita Gusman, Economic Development Program Manager; Laurie Brewer, Assistant City Manager; Leah Wallace, Finance Director/Finance Manager; Debbie Mitchell, Senior Accountant; Paul Diaz, Budget Analyst; Tina Dunbar, Marketing Coordinator MINUTES Call to Order at 4:00 pm A Consideration and approval of the minutes for Georgetown Economic Development Corporation for the Regular Meeting held Monday, May 15, 2017--Bill Mateja, Secretary Motion by S. Klein, second by K. Kelly to approve the May 15, 2017 Minutes. (Approved 5-0) B Discussion and possible action to adopt the FY2018 proposed GEDCO budget and set a date for the public hearing on the proposed budget. Leigh Wallace, Finance Director, COG, Finance Manager, GEDCO L. Wallace presented the 2018 draft budget for review and approval. L. Wallace and D. Morgan provided details on the budget and answered questions from the board. Motion by S. Klein, second by K. Kelly to approve the FY2018 GEDCO budget as presented by staff. C Consideration of the May 31, 2017 financial report. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG L. Wallace presented the report and answered questions from the board. D Discussion and possible action regarding the Staff Report —David Morgan, City Manager -Performance Agreement Report -Report from Planning -Other Projects Page 4 of 114 GEDCO Minutes June 19, 2017 Page 2 of 2 C. Gusman presented the performance agreement report. Following discussion D. Morgan and C. Gusman answered questions from the board. D. Morgan presented the report from planning and update on other projects. E Action out of Executive Session. No executive session. Adjourn at 4:45 p.m. ATTEST: ______________________________ ___________________________________ Bill Mateja, Corporate Secretary Jeff Parker, President Page 5 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the Target Ind ustry and Wo rkforc e Analys is - Michaela Do llar, Direc tor o f Ec o nomic Development ITEM SUMMARY: At its Marc h 2017 meeting, GEDCO approved an agreement with Avalanc he C o ns ulting to cond uc t a Target Indus try and Wo rkforc e Analysis. Avalanc he has c o mp leted the analys is and wo uld like to p res ent its finding to GEDC O. FINANCIAL IMPACT: N/A SUBMITTED BY: Michaela Dollar, Direc tor o f Econo mic Development ATTACHMENTS: Description Type Workforce Cover Memo Target Indus try Cover Memo Page 6 of 114 CITY OF GEORGETOWN WORKFORCE ANALYSIS AUGUST 18, 2017 avalanche Page 7 of 114 About the City of Georgetown Economic Development Target Industry & Workforce Analysis In April 2017, the City of Georgetown initiated the development of an Economic Development Target Industry & Workforce Analysis aimed at diversifying the local economy, increasing business investment throughout the city, and fully leveraging hometown talent. Through a competitive bidding process, the City of Georgetown retained Avalanche Consulting, a national economic development consultancy based in Austin, TX, to facilitate the preparation of the Economic Development Target Industry & Workforce Analysis. Georgetown residents and businesses were invited to share their perspectives and vision for the community through a series of individual interviews and focus groups. Once complete, the Economic Development Target Industry&WorkforceAnalysiswillhavetwoprimaryphases: Phase 1: Workforce Analysis The Economic Development Target Industry & Workforce Analysis begins with an exploration of Georgetown's competitive position. The study team examined a range of local assets and quantitative metrics to better understand the city’s evolving economy and population. In addition to data analysis, the study team conducted multiple focus groups and interviews. All input is then distilled into a concise SWOT summary outlining the community’s strengths, weaknesses, opportunities, and threats. Phase 2: Target Cluster Analysis This second phase of the Economic Development Target Industry & Workforce Analysis includes the target clusters and niche sector recommendations of the consulting team. By targeting specific industry clusters, the City of Georgetown can more strategically invest in those factors such as infrastructure or workforce training programs necessary to spur job creation within the community. Target cluster identification blends industry location quotient analysis with a review of data trends, SWOT evaluation, and city priorities. Page 8 of 114 2 About this Document The following Workforce Analysis provides an in-depth evaluation of Georgetown’s economic performance and demographic Dynamics. Specifically, the assessment examines a simple question. How successful is Georgetown in the pursuit of job, talent, and overall civic prosperity? Economic and demographic information on Georgetown is benchmarked against the Austin metropolitan area, Texas and US averages to provide greater context to the city’s performance across a wide range of metrics. The benchmarking analysis also includes a focus on Georgetown’s labor shed as determined by prevailing commuting patterns. The Workforce Analysis also includes a workforce profile on Georgetown detailing and emerging drivers of job creation within the city. The Workforce Profile includes a consideration of employment by both industry occupation, employment growth, and relative employment concentration. The workforce profile also includes an examination of average wages by industry and occupation for workers employed within Georgetown as well as benchmark geographies. The Workforce Analysis concludes with a SWOT analysis that provides a brief overview of the city’s strengths, weaknesses, opportunities, and threats. The SWOT analysis is based on quantitative economic and demographic information collected during the project as well as qualitative information gathered during numerous focus group discussions, one-on-one interviews conducted with Georgetown residents, community leaders, and business owners. Ultimately, the findings of the Workforce Analysis will help identify those industries that are best positioned to thrive within the community. These industries will be detailed in the next phase of the project, the Target Industry Analysis. Page 9 of 114 3 Key Takeaways Labor Shed Identification Economic Dynamics There is relatively little overlap between those who live in Georgetown and those who work in Georgetown. Approximately 75% of all Georgetown residents active in the workforce are employed outside of the city. At the same time, approximately 75% of all jobs within the city are filled by workers who reside outside of Georgetown. Georgetown's labor shed extends far beyond the city’s formal boundaries. The city’s labor shed extends from Austin to Temple alongside interstate 35 and encompasses more than 700,000 relatively young and well-educated workers. Georgetown continues to enjoy strong employment gains. Between 2011 and 2016, the number of jobs within the city rose by more than 20%, virtually identical to the regional average. During this same period, total US job growth was less than 10%. Employment within Georgetown is largely composed of locally-serving industries such as Construction and Trade & Transportation. Georgetown’s economy is becoming more balanced and diversified. Over the past five years, some of the fastest growing industries in the city have included Manufacturing, Professional & Business Services, and Financial Activities. Page 10 of 114 4 Key Takeaways Workforce Profiles Georgetown remains one of the fastest growing cities in the US. The city’s population has doubled in the past 15 years. Georgetown has an above average share of older residents. Half of all Georgetown residents are at least 47 years old and more than a quarter of the city’s residents are age 65 and older. This contributes to low labor force participation among Georgetown residents. Georgetown is highly educated. Nearly 45% of Georgetown residents possess a bachelor’s degree or higher level of educational attainment. In recent years, Georgetown’s employment gains have been bolstered by growth across virtually every occupational cluster. This dynamic is projected to continue through 2021. In the years ahead, employment growth will be primarily driven by a handful of industries. According to current projections, five clusters will account for 75% of all new jobs – Healthcare, Retail, Electronics,Entertainment, and Construction. Wages for most occupations are higher in Georgetown’s Southern Labor shed than in Georgetown. In turn, wages in Georgetown are typically higher than in the city’s Northern Labor Shed. Demographic Dynamics Page 11 of 114 Table of Contents Identifying the flow of workers into and out of Georgetown is critical to understanding the community’s economic role in the broader region. Prevailing economic dynamics operating within Georgetown will ultimately help determine target industries that are best suited to the community. Georgetown’s current and future labor force will heavily depend on the community’s demographic characteristics. LABOR SHED IDENTIFICATION ECONOMIC DYNAMICS DEMOGRAPHIC DYNAMICS PAGEPAGE 12 PAGEPAGE 6 PAGEPAGE 26 5 Past and projected employment growth trends within Georgetown will inform the community’s current and future workforce needs. The SWOT Analysis summarizes Georgetown’s strengths, weaknesses, opportunities, and threats across a variety of workforce areas. WORKFORCE PROFILES SWOT ANALYSIS PAGEPAGE 40 PAGEPAGE 56 Page 12 of 114 01 Labor Shed Identification The Labor Shed Identification highlights existing commuting patterns within Georgetown. The analysis examines the number of workers within Georgetown, the number of Georgetown residents employed outside of the community, and the number of non-residents that commute into Georgetown for work. 6Page 13 of 114 Georgetown is located in one of the fastest growing regions of the one of the fastest growing states in the US. About the Region WHY IS THIS IMPORTANT? Georgetown is located approximately 25 minutes due north of downtown Austin and bisected by Interstate 35. With nearly 64,000 residents, as of 2016 Georgetown is the 4 th largest city in the Austin metropolitan region. Georgetown grew extraordinarily fast over the past 15 years - with the population more than doubling. In 2016, The US Census Bureau reported that Georgetown was the fastest growing city in the US with a population of 50,000 or more. 7 GEORGETOWN ROUND ROCK AUSTIN TEMPLE Page 14 of 114 Commuting patterns play several important roles in a region’s economy. Regions that can draw from the available talents and skill sets present outside of their communities can significantly increase their available workforce. Commuting Patterns WHY IS THIS IMPORTANT? Very few Georgetown residents both live and work in the city. Approximately 75% of all employed Georgetown residents work in another city. At the same time, approximately 75% of all jobs within Georgetown are filled by individuals living somewhere else. These patterns are not unusual for a traditionally small town but now high-growth city located within a major metropolitan area. Large commuter shares add to increased traffic concerns. They also can indicate a lack of resiliency in the local economy, with residents dependent on jobs located outside of the community and businesses reliant on workers who live elsewhere. 8 CITY OF GEORGETOWN COMMUTER INFLOW/OUTFLOW ANALYSIS 2014 5,275 Individuals who live and work in Georgetown Individuals who live in Georgetown but work outside of the city16,32515,600Individuals employed in Georgetown who live outside of the city Page 15 of 114 Commuting patterns play several important roles in a region’s economy. Regions that can draw from the available talents and skill sets present outside of their communities can significantly increase their available workforce. Commuting Patterns WHY IS THIS IMPORTANT? Georgetown residents work for employers throughout Central Texas. The top destinations for out-commuting residents are Austin, Round Rock, and Cedar Park. A smaller number of Georgetown residents commute to cities such as Hutto, Pflugerville, and even Temple. 9 GEORGETOWN AUSTIN CITY OF GEORGETOWN COMMUTER INFLOW/OUTFLOW ANALYSIS 2014 TEMPLE Page 16 of 114 Georgetown Labor Shed Georgetown’s Labor Shed extends from Austin to Temple alongside interstate 35. Georgetown’s Labor Shed shows that local employers can draw from a pool of workers much bigger than the city itself – the Labor Shed encompasses more than 700,000 workers. Georgetown’s Labor Shed is composed largely of young professionals, with more than a third of workers between the ages of 25 and 44. The Labor Shed is also very well educated – more than 40% of individuals living in the Labor Shed possess a bachelor’s degree or higher level of educational attainment. Both the Economic Dynamics and Demographic Dynamics sections provide comparisons of the City of Georgetown to its broader Labor Shed, the Austin Metro, Texas, and the US. 10 GEORGETOWN AUSTIN TEMPLE The economy of a community is not contained by political boundaries. Every community draws workers from outside its borders and sends residents to jobs in other locations. To fully understand a community’s available labor force, one must examine the entire labor market from which the community draws. WHY IS THIS IMPORTANT? Page 17 of 114 The economy of a community is not contained by political boundaries. Every community draws workers from outside its borders and sends residents to jobs in other locations. To fully understand a community’s available labor force, one must examine the entire labor market from which the community draws. Two Labor Sheds WHY IS THIS IMPORTANT? Because the Labor Shed is so large, it can be effectively seen as two distinctly different, but overlapping labor sheds. The Southern Labor shed extends from Georgetown to Southern Austin. The Northern Labor Shed draws from as far away as Temple. These two labor sheds form distinct pools of talent from which Georgetown employers can draw. The characteristics of these labor sheds are discussed in more detail in the Workforce Profiles section of this report. 11 GEORGETOWN AUSTIN TEMPLE Page 18 of 114 02 Economic Dynamics Over the past decade, the City of Georgetown has experienced significant economic growth. Traditionally,Georgetown was a rural bedroom community. The city is still cherished for its small town feel, but in recent years the number of primary jobs has grown rapidly. The following metrics place Georgetown’s economic performance in a broader context and underscore areas in which the community is moving in a positive direction. 12Page 19 of 114 Employment growth is a primary indicator of a community’s overall economic health. Strong job creation relative to benchmark communities can indicate a more competitive business climate and the presence of supportive resources. Employment Growth WHY IS THIS IMPORTANT? SOURCE: AVALANCHE CONSULTING / EMSISOURCE: AVALANCHE CONSULTING / EMSI CITY OF GEOGETOWN TOTAL EMPLOYMENT 2006 – 2016 20.7% 19.2% 20.0% 12.6% 8.8% Georgetown Labor Shed Austin MSA Texas USA EMPLOYMENT GROWTH 2011 – 2016 Over the past five years, Georgetown has seen rapid job growth. Between 2011 and 2016, overall employment grew 21% to reach 28,000 jobs. This rate of growth was faster than the surrounding Labor Shed and Austin metro. During this period, job growth in Georgetown was more than 50% greater than Texas and more than twice the US average. 13 19.6K 21.7K 22.1K 21.3K 21.2K 23.1K 23.9K 25.2K 25.7K 27.2K 27.9K Page 20 of 114 Low unemployment suggest that the residents are able to secure employment. Especially low unemployment, however, may also indicate a potential workforce shortage. Higher unemployment may also indicate that a larger portion of residents are actively seeking jobs. Unemployment WHY IS THIS IMPORTANT?     Georgetown USA UNEMPLOYMENT RATE 2006 – 2016 SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICSSOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS 3.9% 3.2% 4.7% 4.1% Georgetown Austin MSA Texas USA UNEMPLOYMENT RATE MAY 2017 Georgetown’s unemployment rate has remained less than the US average every single month of the past decade. For the first time, in 2017 Georgetown’s unemployment rate was within a half of a percentage point of the US average. Georgetown’s unemployment rate currently stands at 3.9%, slightly higher than the Austin metropolitan average but less than the statewide and US averages. 14Page 21 of 114 Resilient economies employ residents in a diverse mix of industries. A diverse industry base allows communities to better weather economic downturns that affect one industry more than others. A diverse economy also provides jobs with different educational and experience requirements that help sustain all residents. Industry Diversity (US Benchmark)WHY IS THIS IMPORTANT? EMPLOYMENT BY INDUSTRY 2016 EMPLOYMENT GROWTH BY INDUSTRY 2011 – 2016 SOURCE: AVALANCHE CONSULTING / EMSISOURCE: AVALANCHE CONSULTING / EMSI * Other services includes various service industries such as automotive repaid, personal services such as dry cleaning, and non-profit organizations. Employment by industry within Georgetown varies slightly from the US average. Georgetown is home to a higher proportion of Construction, Manufacturing and Trade & Transportation employment relative to the US average. These three industries represent approximately 45% of total employment within Georgetown compared to just 32% nationally. Georgetown has smaller proportions in Information, Financial Activities, and Professional & Business Services. Over the past 5 years, almost all industries in Georgetown grew more rapidly than the US. Employment in Georgetown’s Manufacturing and Professional & Business Services sectors each grew by more than 60%. Employment in Financial Activities and Education & Health Services increased by more than 40%. 15 3% 11% 11% 16% 9% 4% 1% 26% 11% 8% 2%Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professional & Business Svcs. Education & Health Svcs. Leisure & Hospitality Government Other* 2% 20% 46% 61% 44% 39% -5% 64% 37% 22%Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professional & Business Svcs. Education & Health Svcs. Leisure & Hospitality Government Other*200%+ - US Average Page 22 of 114 Resilient economies employ residents in a diverse mix of industries. A diverse industry base allows communities to better weather economic downturns that affect one industry more than others. A diverse economy also provides jobs with different educational and experience requirements that help sustain all residents. Industry Diversity (Austin Metro Benchmark)WHY IS THIS IMPORTANT? EMPLOYMENT BY INDUSTRY 2016 EMPLOYMENT GROWTH BY INDUSTRY 2011 – 2016 SOURCE: AVALANCHE CONSULTING / EMSISOURCE: AVALANCHE CONSULTING / EMSI * Other services includes various service industries such as automotive repaid, personal services such as dry cleaning, and non-profit organizations. In some ways, Georgetown’s economy more closely reflects the US as a whole rather than Central Texas. Georgetown’s high concentration of manufacturing employment, for example, is even more striking against the backdrop of the Austin metro. Manufacturing represents nearly 11% of jobs in Georgetown but less than 6% of jobs within the broader region. Conversely, Financial Activities comprise just 9% of jobs within Georgetown, less than the US average of 12%. In the Austin metro, Financial Activities represent more than 16% of all jobs. 16 3% 11% 11% 16% 9% 4% 1% 26% 11% 8% 2%Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professional & Business Svcs. Education & Health Svcs. Leisure & Hospitality Government Other* 2% 20% 46% 61% 44% 39% -5% 64% 37% 22%Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professional & Business Svcs. Education & Health Svcs. Leisure & Hospitality Government Other*200%+ - Austin Metro Average Page 23 of 114 Industry Salaries WHY IS THIS IMPORTANT? CITY OF GEORGETOWN AVERAGE SALARY BY INDUSTRY 2016 64% 95% 129% 127% 60% 69% 71% 80% 83% 76% 103% Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professonal & Business Svcs Education & Health Svcs Leisure & Hospitality Government Other* CITY OF GEORGETOWN SHARE OF US AVERAGE SALARY BY INDUSTRY 2016 $76,777 $65,254 $103,587 $64,940 $69,422 $71,720 $64,742 $46,225 $21,285 $59,320 $39,066 Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professonal & Business Svcs Education & Health Svcs Leisure & Hospitality Government Other* SOURCE: AVALANCHE CONSULTING / EMSISOURCE: AVALANCHE CONSULTING / EMSI * Other services includes various service industries such as automotive repaid, personal services such as dry cleaning, and non-profit organizations. The average salary for a worker employed within Georgetown is approximately $60,000, slightly less than the US average of $65,000. Average wages by industries vary widely in Georgetown. At more than $100,000, the average Manufacturing salary in Georgetown is nearly 30% higher than the US average. At nearly $65,000, the average Trade & Transportation salary in Georgetown is more than 25% higher than the US average. Average salaries for most other industries, however, are 20% to 40% lower relative to the US average. This includes high-wage, high skill industries such as Information ($69,000 versus $115,000) as well as industries characterized by lower skill, lower wage occupations such as Leisure & Hospitality ($22,000 versus $26,000). Examining salaries by industry helps reveal which local industries are more competitive for workers or where workers show higher productivity. Above-average salaries may also indicate high demand for those workers in a community. The presence of high-salary industries is also a sign of positive wealth creation in a community. 17Page 24 of 114 Entrepreneurial Activity WHY IS THIS IMPORTANT? MICRO BUSINESSES (<10 EMPLOYEES) AS % OF ALL BUSINESSES 2014 CHANGE IN % SHARE IN MICRO BUSINESSES (<10 EMPLOYEES) 2009-2014 More than 73% of businesses within Georgetown have less than 10 employees (micro businesses) – the same as the US average but slightly higher than the statewide and regional averages. Between 2009 and 2014, the number of businesses in Georgetown with less than 10 employees grew 10%. Growth of micro businesses in Georgetown outpaced the US and Texas averages, but local gains trailed the averages of both the Austin region and the Labor Shed. Businesses that have fewer than ten employees are the heart of the national economy. While few create big job gains all at once and many often fail, positive growth of small businesses reflects a thriving economy and the presence of an ecosystem that encourages entrepreneurship. 18 SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS 10.0% 14.3% 16.0% 6.5% 1.2% Georgetown Labor Shed Austin Texas US SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS 73.3% 70.1% 71.6% 70.3% 73.1% Georgetown Labor Shed Austin Texas US Page 25 of 114 Employment/Population Balance WHY IS THIS IMPORTANT? NUMBER OF JOBS PER 10 RESIDENTS, 2014 CITY OF GEORGETOWN NUMBER OF JOBS PER 10 RESIDENTS 2010 – 2015 Georgetown holds 4.3 jobs for every 10 residents. Notably, this balance between jobs and people is the same as the regional average. This ratio has declined since 2010 – meaning that despite rapid job growth in recent years, the number of residents in Georgetown has grown faster than jobs. Without accelerated job growth locally, the balance between jobs and people in Georgetown will likely continue to fall. Within Texas, communities with a significant imbalance between employment and population often feature relatively high property tax rates due to limited commercial and industrial development. Residents in such communities may endure long commutes. 19 SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICSSOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS 4.3 4.6 4.2 4.3 Georgetown Austin Texas US 4.5 4.6 4.5 4.6 4.4 4.3 Page 26 of 114 Commute Times WHY IS THIS IMPORTANT? AVERAGE COMMUTE TIME (MINUTES), 2014 % OF WORKERS THAT COMMUTE MORE THAN 60 MINUTES, 2014 The average worker living in Georgetown spends nearly 26 minutes each way commuting to and from work. This is the same average commute time as the US average and similar to the Texas and Austin regional averages. Notably, workers residing in Georgetown’s Labor Shed have a slightly shorter commute. Commuting patterns play several important roles in a region’s economy. Regions that can draw from the available talents and skill sets present outside of their communities can significantly increase their available workforce. 20 SOURCE: AVALANCHE CONSULTING / US CENSUS BUREAUSOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU 25.9 24.2 26.2 25.6 25.9 Georgetown Labor Shed Austin Texas US 8.1% 5.7% 7.1% 7.6% 8.5% Georgetown Labor Shed Austin Texas US Page 27 of 114 Net Commuters by Age WHY IS THIS IMPORTANT? NET INFLOW OF WORKERS INTO CITY OF GEORGETOWN BY AGE, 2014 NET INFLOW OF WORKERS INTO CITY OF GEORGETOWN BY EARNINGS, 2014 Georgetown tends to import younger, lower-wage workers and export older, higher wage workers. This reflects On a net basis, the number of workers age 29 and younger employed by Georgetown companies is less than the number of working residents in the same age range. Conversely, the number of employed Georgetown residents age 30 and older exceeds the number of jobs within the city filled by workers age 30 and older. Similarly, there are far more Georgetown residents that earn at least $40,000 annually than actual jobs within Georgetown that pay at least $40,000 a year. The flow of workers within a community often reflects a disconnect between the skills of residents and locally available employment opportunities. For example, highly skilled residents in bedroom communities are typically employed in neighboring jurisdictions. 21 SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICSSOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS 247 1,017 -1,993 $15K a Year or Less Annually $15K to $40K Annually $40K+ Annually 296 -530 -495 Age 29 or younger Age 30 to 54 Age 55 or older Page 28 of 114 Net Worker Flow by Industry WHY IS THIS IMPORTANT? NET INFLOW OF WORKERS INTO CITY OF GEORGETOWN BY INDUSTRY COMPOSITION, 2014 CHANGE IN NET INFLOW OF WORKERS INTO CITY OF GEORGETOWN BY INDUSTRY COMPOSITION, 2009 - 2014 Georgetown exports workers across most industries. For example, there are approximately 1,200 more Georgetown residents employed in Professional & Business Services positions than Professional & Business Services jobs within the city. A similar, if less pronounced, dynamic exists in Construction, Manufacturing, Trade & Transportation, Information, and Financial Activities. Conversely, on a net basis Georgetown imports workers in Education & Health Services, Leisure & Hospitality, and Government. Between 2009 and 2014, there were several shifts in worker movement. Growth in Manufacturing, Trade & Transportation, and Professional & Business Services within Georgetown has helped the city’s employment base become more balanced. 22 SOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICSSOURCE: AVALANCHE CONSULTING / BUREAU OF LABOR STATISTICS -260 -445 -211 -239 -179 -325 -1,196 892 125 1,078 31 Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professonal & Business Svcs Education & Health Svcs Leisure & Hospitality Government Other -72 -52 383 1,022 52 82 181 66 127 -47 130 Natural Resources Construction Manufacturing Trade & Transportation Information Financial Activities Professonal & Business Svcs Education & Health Svcs Leisure & Hospitality Government Other The flow of workers within a community often reflects a disconnect between the skills of residents and locally available employment opportunities. For example, highly skilled residents in bedroom communities are typically employed in neighboring jurisdictions. Page 29 of 114 Resident Worker & Employment Balance WHY IS THIS IMPORTANT? RATIO OF GEORGETOWN RESIDENTS EMPLOYED IN SPECIFIC OCCUPATIONS TO NUMBER OF JOBS AVAILABLE WITHIN THE CITY, 2017 Georgetown has more residents employed in every occupational category than jobs in the city.As residents, the city has a surplus of workers across every major occupational group. The city is home to more than twice as many workers employed in Protective Services (firefighters, police officers, etc.) than actual jobs in Protective Services. The ratio of Science and Legal resident workers to jobs is nearly 2 to 1. Georgetown is home to more than 50% more workers in Arts & Entertainment and Healthcare Practitioners than jobs. There are also significant surpluses of Business & Finance, Education, Computer & Math, and Office & Administration workers living within Georgetown. 23 SOURCE: AVALANCHE CONSULTING / EMSI The flow of workers within a community often reflects a disconnect between the skills of residents and locally available employment opportunities. For example, highly skilled residents in bedroom communities are typically employed in neighboring jurisdictions. 0.0 0.5 1.0 1.5 2.0 2.5 3.0 Page 30 of 114 Wealth creation is an important goal of economic development and a strong measure of a community’s economic health. When residents of a community have high household incomes they are able to reinvest locally – purchasing goods and services that spur additional economic growth. Median Household Income WHY IS THIS IMPORTANT? SOURCE: AVALANCHE CONSULTING / US CENSUS ACSSOURCE: AVALANCHE CONSULTING / US CENSUS ACS $60.9K $61.6K $63.K $63.4K $62.2K $63.0K CITY OF GEORGETOWN MEDIAN HOUSEHOLD INCOME 2010 – 2015 MEDIAN HOUSEHOLD INCOME 2015 Georgetown is a relatively affluent community. At $63,000, median household income in Georgetown is $10,000 higher than the US average. Median household income is also approximately $4,000 greater than for the Austin metropolitan region as a whole. Over the past five years, median household income in Georgetown grew 4%, an increase of $2,000. 24 $63.0K $63.9K $59.6K $51.6K $53.0K Georgetown Labor Shed Austin MSA Texas USA Page 31 of 114 Varying home prices within a region provide housing choice to workers within a region. Communities are often able to attract workers from adjacent areas with lower housing prices (and wages). Home Values WHY IS THIS IMPORTANT? SOURCE: AVALANCHE CONSULTING / US CENSUS ACS MEDIAN HOME VALUE 2011 – 2015 Comparable housing values for Georgetown and its broader labor sheds are only available from the US Census Bureau. Estimated values are based on a 5-year moving average and are available through 2015. While home prices in Central Texas have continued to increase in subsequent years, underlying price dynamics within the region remain constant. At $210,000, median home values in Georgetown are virtually identical to that of the broader region. Home prices in Georgetown’s Northern Labor Shed are substantially lower. In 2015, median home values in Georgetown’s Northern Labor Shed were less than $145,500. Additionally, home prices in the North Shed are also increasing at a slower pace than in either Georgetown or the Austin metro. 25 $0 $50,000 $100,000 $150,000 $200,000 $250,000 2011 2012 2013 2014 2015 TexasNorthern Labor Shed US Southern Labor Shed Austin MSAGEORGETOWN Page 32 of 114 Poverty levels indicate whether residents have incomes and access to jobs that allow them to prosper and support their families. High poverty levels often reflect limited job opportunities in a community and put heavy demands on social services. Poverty Levels WHY IS THIS IMPORTANT? 9.5% 9.5% 9.1% 9.1% 10.2% 8.0% 13.8%14.3%14.9%15.4%15.6%15.5% Georgtown US SHARE OF POPULATION IN POVERTY 2010 – 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS ACSSOURCE: AVALANCHE CONSULTING / US CENSUS ACS SHARE OF POPULATION IN POVERTY 2015 Poverty in Georgetown is significantly less than the regional, statewide, and US averages. In 2015, only 8% of Georgetown’s population lived in poverty – a share that has steadily declined during the past five years. The poverty rates for both Georgetown’s Labor Shed and the Austin metropolitan region are approximately 14%. Nationally, more than 15% of the population lives in poverty. The figure is even higher in Texas – more than 17% of residents statewide live in poverty. 26 8.0% 14.6% 14.2% 17.3% 15.5% Georgetown Labor Shed Austin MSA Texas USA Page 33 of 114 01 Employment in Georgetown has increased substantially during the past 5 years. Between 2011 and 2016, total employment in Georgetown increased at a faster pace than the regional, statewide, and national averages. Currently, Georgetown's unemployment rate is just 3.9%, less than the national average but slightly higher than the regional average. 02 Locally serving industries represent a disproportionately large share of employment in Georgetown. Industries such as Construction and Trade & Transportation that address local needs represent a relatively large share of employment within Georgetown while other industries such as Information and Professional & Business Services are less present. One notable exception is Manufacturing. The export-oriented industry comprises a higher share of employment in Georgetown relative to the US average. 03 Georgetown’s fastest growing industries reflect the emergence of a more balanced local economy. Between 2011 and 2016, the fastest growing industries in Georgetown included Manufacturing, Professional & Business Services, and Financial Activities. These industries are not only more export-oriented, but they are also characterized by many high-skill, high wage occupations. Economic Dynamics Key Takeaways 27Page 34 of 114 03 Demographic Dynamics A community's demographic composition ultimately determines its workforce composition. Is it growing? Is it highly educated? Is it continuously adding to its talent reservoir by attracting and producing skilled workers? The answers to these questions will help determine the community’s ability to support a thriving and expanding economy. The following section compares Georgetown’s demographic dynamics to those of the broader labor shed, the entire Austin metropolitan region, Texas, and the US. 28Page 35 of 114 Population growth is one of the base indicators of overall economic prosperity in a community. A growing population shows that a community has assets and job opportunities that retain younger residents and attract new workers. A growing population also reassures businesses that they will have workers and new customers available in the future. Population Growth WHY IS THIS IMPORTANT? Georgetown has experienced unprecedented population growth over the past 15 years. Since 2000, the city’s population has more than doubled. Today, Georgetown is home to approximately 64,000 residents. The city continues to post significant population gains. Between 2010 and 2015, Georgetown’s population increased by 34% – twice the rate of Austin, one of the fastest growing regions in the nation. Over this period, the Texas population increased less than 10% and the US population increased by only 4%. 34% 17% 9% 4% Georgetown Austin Texas US POPULATION GROWTH 2010 – 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU POPULATION ESTIMATESSOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU POPULATION ESTIMATES 28K 31K 35K 39K 43K 47K 53K 59K 64K 0 25,000 50,000 75,000 CITY OF GEORGETOWN POPULATION 2000 – 2015 29Page 36 of 114 The age distribution of a population can help better understand where to prioritize community investments. Age distribution helps understand gaps in workforce availability and identify populations that may have distinct needs – such as children and the elderly. Age Distribution WHY IS THIS IMPORTANT? SHARE OF POPULATION BY AGE 2015 6% 8% 12% 14% 13% 14% 10%11% 13%13% 16% 13% 9% 11%11% 7% 9% 12% 75 +65 to 7455 to 6445 to 5435 to 4425 to 3418 to 2410 to 17< 10 US Georgetown SOURCE: AVALANCHE CONSULTING / US CENSUS ACS Georgetown’s population is older than the US average. Nearly 29% of Georgetown residents are age 65 and older – more than twice the US average. As a result, Georgetown has a smaller proportion of residents relative to the US average across virtually all other age groups. Notably, Young Professionals (residents between 25 and 44 years old) – a critical component of the workforce – comprise 27% of the national population but only 22% of Georgetown residents. Individuals between the ages of 18 and 24 comprise 10% of the US population but less than 7% of Georgetown’s population – despite the presence of Southwestern University. 30Page 37 of 114 Benchmark Age WHY IS THIS IMPORTANT? MEDIAN AGE 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS ACS SOURCE: AVALANCHE CONSULTING / US CENSUS ACS % OF YOUNG PROFESSIONALS (RESIDENTS AGE 25-44) 2015 The relative age of Georgetown’s population stands in contrast to the relative youth of the Austin region. The median age in the Austin region is less than 34 years – four years younger than the US median. In Georgetown, the median age is 47 years. Young professionals represent fewer than 22% of Georgetown’s population – well below the regional average. Approximately one-third of the population in both Austin and Georgetown’s labor force are between the ages of 25 and 44. 31 Young Professionals (residents aged 25 to 44 years old) represent a critical segment of a local workforce for companies seeking to hire new workers with the latest skills and knowledge. Recruiting and retaining residents in this age cohort helps ensure a region can supply a growing labor force for companies. 22% 34% 33% 28% 27% Georgetown Labor Shed Austin Texas US 47.0 33.7 33.6 34.1 37.6 Georgetown Labor Shed Austin Texas US Page 38 of 114 The modern economy is increasingly knowledge-intensive. New jobs often require education beyond a high-school diploma – ranging from a certificate to a master’s degree. Due to this growing reliance on skilled workers, many businesses expand in and choose new locations based on the presence of a well-educated population. Educational Attainment WHY IS THIS IMPORTANT? SHARE OF 25 YEARS+ POPULATION W/ A BACHELOR’S DEGREE OR HIGHER, 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS ACS SOURCE: AVALANCHE CONSULTING / US CENSUS ACS SHARE OF 25 YEARS+ POPULATION W/ AN ASSOCIATE DEGREE, 2015 Georgetown is a highly educated community – with 44% of residents age 25 and older possessing a bachelor’s degree or higher level of educational attainment. The share of Georgetown residents with a bachelor's degree or higher is nearly 50% greater than the US average and exceeds that of the Austin region – one of the most educated metropolitan areas in the country. Nearly 8% of Georgetown residents possess an Associate’s degree – slightly lower than the US average but higher than the regional and statewide averages. 32 7.7% 7.1% 6.5% 6.7% 8.1% Georgetown Labor Shed Austin Texas US 44.0% 40.6% 41.7% 27.6% 29.8% Georgetown Labor Shed Austin Texas US Page 39 of 114 In communities with a large retired population, overall levels of educational attainment may not reflect the attributes of the local workforce. Educational Attainment by Age WHY IS THIS IMPORTANT? SOURCE: AVALANCHE CONSULTING / US CENSUS ACS Nationally, younger generations are more likely to posses a bachelor’s degree or higher education. This trend holds true for the Austin region, Texas, and Georgetown’s labor shed – with younger residents holding more degrees. In the City of Georgetown, the most well-educated residents are those age 45 and older. Georgetown residents between the ages of 25 and 44 are less likely to be college graduates than their counterparts in the broader labor shed or Austin region (though their education levels exceed the US and Texas). 33 SHARE OF POPULATION W/ A BACHELOR’S DEGREE OR HIGHER BY AGE GROUP, 2015 24% 29% 33%33% 24% 28%30%28% 37% 41% 45%43% 36% 40% 44%42% 49% 45% 39% 34% 65 years and over:45 to 64 years:35 to 44 years:25 to 34 years: US Texas Austin Labor Shed Georgetown Page 40 of 114 The modern economy is increasingly knowledge-intensive. New jobs often require education beyond a high-school diploma – ranging from a certificate to a master’s degree. Due to this growing reliance on skilled workers, many businesses expand in and choose new locations based on the presence of a well-educated population. Education Breakdown WHY IS THIS IMPORTANT? FIELD OF BACHELOR'S DEGREE FOR FIRST MAJOR OF RESIDENTS WITH A BACHELOR’S DEGREE, 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS ACS 4.5% 6.0% 3.4% 4.9% 8.2% 7.5% 0.7% 9.2% 19.7% 12.8% 4.6% 5.2% 4.1% 3.9% 5.4% 4.3% 4.8% 4.2% 5.5% 5.7% 7.6% 0.3% 9.0% 17.3% 18.0% 3.5% 6.3% 4.0% 4.0% 5.3% Computers, Mathematics, and Statistics Biological, Agricultural, and Environmental Sciences Physical and Related Sciences Psychology Social Sciences Engineering Multidisciplinary Studies Science and Engineering Related Fields Business Education Literature and Languages Liberal Arts and History Visual and Performing Arts Communications Other US Georgetown Science & Engineering Business Arts & Humanities The distribution of bachelor’s degrees among Georgetown residents is similar to the US average. Nearly 33% of Georgetown residents with a bachelor’s degree studied a Science & Engineering field. Nationally, the figure is 35%. Georgetown residents are more likely to possess an Education degree than their US counterparts (18% versus 13%) and slightly less likely to possess a Social Science or Business degree. Education 34Page 41 of 114 Communities with high levels of talent production and attraction are significantly better positioned to capture high-skill, high wage job growth compared to communities with more limited talent production and attraction. Talent Production & Attraction WHY IS THIS IMPORTANT? NET INFLUX OF INDIVIDUALS WITH A BACHELOR’S DEGREE OR HIGHER LEVEL OF EDUCATIONAL ATTAINMENT INTO CITY OF GEORGETOWN SOURCE: AVALANCHE CONSULTING / US CENSUS ACS SOURCE: AVALANCHE CONSULTING / US CENSUS ACS POST-SECONDARY DEGREES AWARDED BY CITY OF GEORGETOWN HIGHER EDUCATION INSTITUTIONS Georgetown is both attracting and producing talent. Since 2012, on a net basis Georgetown has annually attracted at least 500 individuals with a college degree. Southwest University annually awards approximately 300 degrees to graduating students in Georgetown. Georgetown Independent School District (ISD) is in the Austin Community College (ACC) service area but not an ACC district. ACC provides programing throughout Georgetown ISD but does not offer any specific degree programs in Georgetown. 35 299314 338 280 308 20152014201320122011 564 505 530551 2015201420132012 Page 42 of 114 The demographic characteristics of migrants into a community helps determine the extent to which new residents contribute the area’s workforce. A community’s population may grow much faster than its workforce, for example, due to an influx of families with small children. Workforce Attraction WHY IS THIS IMPORTANT? MIGRATION OF INDIVIDUALS FROM ANOTHER COUNTY, STATE, OR ABROAD BY AGE 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS ACS Older individuals represent a disproportionate share of migrants moving into Georgetown from other communities. In 2015, nearly 24% of all residents who moved into Georgetown from another county in Texas, outside the state, or abroad were age 65 and older. For context, less than 5% of migrants into the broader Austin region were age 65 and older. 13.8% 18.4% 17.5% 20.7% 18.3% 18.1% 22.1% 23.7% 21.4% 23.9% 26.5% 42.4% 40.9% 37.4% 35.9% 18.2% 12.7% 13.5% 15.4% 15.6% 23.4% 4.4% 4.3% 5.1% 6.4% Georgetown Labor Shed Austin Texas US 1 to 17 18 to 24 25 to 44 45 to 64 65+ 30Page 43 of 114 The modern economy is increasingly knowledge-intensive. New jobs often require education beyond a high-school diploma – ranging from a certificate to a master’s degree. Due to this growing reliance on skilled workers, many businesses expand in and choose new locations based on the presence of a well-educated population. School Performance WHY IS THIS IMPORTANT? 4-YEAR HIGH SCHOOL GRADUATION RATES AMONG ALL SCHOOL DISTRICT WITHIN AUSTIN METRO, 2015 SOURCE: AVALANCHE CONSULTING / TEXAS EDUCATION AGENCY SOURCE: AVALANCHE CONSULTING / TEXAS EDUCATION AGENCY Georgetown ISD has high graduation rates – and most students perform well on the statewide standardized test (STAAR). Georgetown ISD has a 95% graduation rate – compared to 89% on average in Texas. This sits right in the middle of Central Texas school districts. Of Georgetown ISD students who take the STAAR test, 74% receive a satisfactory score across all subject matters – statewide only 28% of students meet the satisfactory threshold. Georgetown students again perform at the average level for Central Texas school districts. 37 95.0% Georgetown ISD % OF STUDENTS WITH SATSIFACTORY ACADEMIC PERFORMANCE SCORES ACROSS ALL SUBJECTS ON STAAR TEST AMONG ALL SCHOOL DISTRICT WITHIN AUSTIN METRO, 2015 74.0% Georgetown ISD Texas Avg. 89.0% Texas Avg. 28.0% Page 44 of 114 Racially and ethnically diverse regions often grow more quickly than their less diverse counterparts. Diversity WHY IS THIS IMPORTANT? Georgetown is less ethnically diverse than the rest of Central Texas and the overall state. Georgetown is also becoming less diverse in recent years. Nearly 75% of Georgetown residents are White, Non- Hispanic. In the Georgetown Labor Shed 53% of residents are White, Non-Hispanic. Between 2010 and 2015, White, Non-Hispanic residents as a share of Georgetown’s population increased from 72% to 74%. During this same period, White Non-Hispanic residents as a share of the overall population declined in the Austin metropolitan region, Texas, and the US. WHITE, NON-HISPANIC RESIDENTS AS % OF TOTAL 2010 SOURCE: AVALANCHE CONSULTING / US CENSUS BUREAUSOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU WHITE, NON-HISPANIC RESIDENTS AS % OF TOTAL, 2015 38 74.0% 51.8% 53.6% 43.8% 62.3% Georgetown Labor Shed Austin Texas US 72.1% 52.7% 54.7% 45.3% 63.7% Georgetown Labor Shed Austin Texas US Page 45 of 114 15,110 6,232 4,2284,0783,576 1,475 3,5403,271 1,247 1,025 1,2322,0952,331 955 2,9262,781 65 years and older55 to 64 years45 to 54 years35 to 44 years25 to 34 years20 to 24 years10 to 19 yearsUnder 9 years POPULATION BY AGE 2015 Population by Age and Race WHY IS THIS IMPORTANT? SOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU Georgetown’s younger residents are more ethnically diverse than older residents. White Non-Hispanic individuals represent 55% of Georgetown residents under the age of 20. In contrast, White Non-Hispanic individuals comprise more than 90% of Georgetown residents age 65 and older. Georgetown’s racial and ethnic composition suggest that the city is likely to become more diverse in the years ahead despite recent trends in the opposite direction. White, Non-Hispanic Non-White and/or Hispanic The age distribution of a population by racial and ethnic groups may reveal the possibility of significant demographic changes in the years ahead. 39Page 46 of 114 Labor Force Participation WHY IS THIS IMPORTANT? Georgetown has a relatively low rate of labor force participation. Fewer than half of Georgetown residents age 16 and older are currently working or unemployed. The remaining half of Georgetown’s population age 16 and older is not currently looking for work. This is likely due to the large retired population in the city. In the Austin region, the labor force participation rate exceeds 70%. The labor force participation rate of Texas and the US is 65% and 64% respectively. Communities with low rates of labor participation feature a smaller available workforce than overall population figures mightsuggest.Atthesametime,such communities do not need to create as many jobs to maintain a balance between population and employment. 40 LABOR FORCE PARTICIPATION RATE, 2015 SOURCE: AVALANCHE CONSULTING / US CENSUS BUREAUSOURCE: AVALANCHE CONSULTING / US CENSUS BUREAU EMPLOYMENT TO POPULATION RATIO, 2015 46.3% 65.4% 65.8% 59.8% 58.0% Georgetown Labor Shed Austin Texas US 49.5% 71.1% 70.2% 64.7% 63.7% Georgetown Labor Shed Austin Texas US Page 47 of 114 01 Most net migration into Georgetown is among working-age individuals. Although Georgetown is widely known as an attractive destination for retirees from outside the region, on a net basis the majority of individuals moving into the city are between the ages of 18 and 64. 02 Educational attainment levels among Georgetown’s population exceed the statewide and US averages across all age groups. While older Georgetown residents have the highest rates of college educational attainment, all age groups contribute to the city’s talent base. College educational attainment levels among Georgetown residents between the ages of 25 and 64 exceed the Texas and US averages. 03 Georgetown is likely to become more racially and ethnically diverse over the next decade. While White, Non-Hispanic individuals represent more than 90% of Georgetown residents age 65 and older, the figure is just 55% among Georgetown residents under the age of 20. Demographic Dynamics Takeaways 41Page 48 of 114 04 Workforce Profiles The following section provides more granular information about Georgetown’s prevailing industry and occupational composition. Profiles are included for Georgetown’s Northern and Southern Labor Sheds. The profiles highlight recent employment trends, including employment growth, employment by industry and occupational cluster, and the relative concentration of each industry and occupational cluster compared to the US average. Industry clusters with high growth projections and/or those heavily concentrated in Georgetown are likely to drive future workforce needs. 42Page 49 of 114 18 NEGATIVE GROWTH POSITIVE GROWTH HIGH CONCENTRATION LOW CONCENTRATION TOP RIGHT – STRONG & ADVANCING Contains clusters that are more concentrated in the region and are growing. These clusters are strengths that help a community stand apart from the competition. Small, high growth clusters can be expected to become increasingly dominant over time. BOTTOM RIGHT – WEAK BUT ADVANCING Contains clusters that are under-represented in the region but are growing (often quickly). If growth trends continue, these clusters will eventually move into the top-right quadrant. Clusters in this quadrant are considered “emerging” strengths for the region. TOP LEFT – STRONG & DECLINING Contains clusters that are more concentrated in the region but are declining (negative employment growth). These clusters may fall into the lower quadrant as job losses eventually produce a decline in concentration. BOTTOM LEFT – WEAK & DECLINING Contains clusters that are under-represented in the region (low concentration) and are also losing jobs. Clusters in this quadrant may indicate a gap in the workforce pipeline if local industries anticipate a future need. In general, clusters in this quadrant reveal a lack of competitiveness. Location Quotients Location Quotients, also called “LQs”, represent the relative concentration or density of a specific occupation cluster in the region compared to theUS average for that occupation cluster. A 1.5 LQ indicates that the region has 50% more concentration on a per capita basis than the US, which is a sign of relative local strength in that occupation cluster. Note that LQ is a relative measure: a high concentration in one cluster means that others will have lower LQs. Each bubble chart illustrates: The growth of each occupational cluster along the horizontal axis The LQ of each occupational cluster along the vertical axis The size of each bubble indicates the number of employees within the occupation Page 50 of 114 City of Georgetown – Industry Cluster Past Performance 44 GEORGETOWN MAJOR INDUSTRY CLUSTERS*, 2016 0 1 2 -10% 0% 10% 20% 30% 40% 50% 60% 70% 80% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING Creative Content Mining & Logging [24%, 10.6 LQ] Healthcare Automotive Construction Finance Professional Services Software/IT Back Office Transportation Metalworking Entertainment Retail Education Government Materials Industrial Machinery [-34%, 4.0 LQ] Electronics [86%, 3.4 LQ] Research [299%, 1.2 LQ] *Clusters with employment of 150 of more are displayed Virtually every industry cluster in Georgetown grew between 2011 and 2016. Only Industrial Machinery and Materials lost jobs during this period; all other. The largest and most concentrated industry clusters in Georgetown relative to the US average are primarily locally serving. This includes clusters such as Construction, Retail, Entertainment, and Healthcare. Georgetown is also home to several smaller but relatively concentrated sectors that serve non-local markets. These clusters include Mining & Logging, Electronics, and Research. Several high-skill, high wage industry clusters remain less concentrated in Georgetown compared to the US average, including Creative Content, Finance, Software/IT, and Professional Services. Local employment in all four of these industry clusters increased by at least 30% over the past 5 years. Page 51 of 114 Northern Labor Shed – Industry Cluster Past Performance 45 GEORGETOWN’S NORTHERN LABOR SHED MAJOR INDUSTRY CLUSTERS*, 2016 0 1 2 -10% 0% 10% 20% 30% 40% 50% 60% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING Creative Content Research [131%, 0.4 LQ] Healthcare Construction FinanceProfessional Services Software/IT Back OfficeTransportation Metalworking Entertainment Retail Education Government Materials Industrial Machinery [-28%, 1.,4 LQ] Electronics [86%, 0.9 LQ] Telecom [-50%, 1.1 LQ] *Clusters with employment of 2,500 of more are displayed Like the City of Georgetown, the Northern Labor Shed is characterized by strong growth across most industry clusters. In many ways, the industrial composition of the Northern Labor Shed mirrors that of Georgetown. The economy is dominated by larger, relatively concentrated, locally serving industries such as Construction, Health Care, and Retail. Like Georgetown, both the Electronics and Research sectors are expanding employment rapidly. Notably, higher-skill, higher-wage industry clusters such as Creative Content and Software/IT are experiencing more modest growth in the Northern Labor Shed compared to Georgetown. In fact, Professional Services employment actually declined in the Northern Labor Shed between 2011 and 2016. Page 52 of 114 Southern Labor Shed – Industry Cluster Past Performance 46 GEORGETOWN’S SOUTHERN LABOR SHED MAJOR INDUSTRY CLUSTERS*, 2016 0 1 2 -10% 0% 10% 20% 30% 40% 50% 60% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING Creative Content Research Healthcare ConstructionFinance Professional Services Back Office Transportation Energy Entertainment Retail Education Government Electronics [14%, 2.4 LQ] Non-Profits Telecom Biomedical *Clusters with employment of 750 of more are displayed Agribusiness Industrial Machinery Software/IT [84%, 2.5 LQ] MaterialsMetalworking Georgetown’s Southern Labor Shed is more than five times larger than its Northern Labor Shed in terms of jobs. The Southern Labor Shed includes a significant portion of the Austin metropolitan region and its industry composition is very different from Georgetown. Between 2011 and 2016, all clusters except Government grew. Software/IT is both the fastest growing and most relatively concentrated industry cluster within the Southern Labor Shed. Other relatively concentrated industry clusters include Electronics, Industrial Machinery, Professional Services, Creative Content, Entertainment, and Finance. While Retail and Healthcare are two of the largest industry clusters within the Southern Labor Shed, they are slightly less concentrated compared to the US average. The Southern Labor Shed is also home to several small but high-growth clusters such as Materials, Energy, and Agribusiness. Page 53 of 114 City of Georgetown – Industry Cluster Projected Growth 47 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER, 2016-2021 -40% -30% -20% -10% 0% 10% 20% 30% 40% 50% 60% -800 -600 -400 -200 0 200 400 600 800 1,000 1,200 Numeric Increase Percentage Increase Employment in Georgetown is projected to grow by more than 15% through 2021 – an increase of approximately 4,350 jobs. Five industry clusters alone are projected to account for 75% of all new jobs – Healthcare, Retail, Electronics, Entertainment, and Construction. Healthcare alone is projected to fuel more than 20% of all job growth within Georgetown through 2021. All five of these clusters are expected to post double-digit employment gains during the next five years. Other leading sources of job growth include Finance, Research, Back Office, and Professional Services. Collectively, these three industry clusters are projected to fuel one out of every five jobs created in Georgetown during the next five years. On a net new job basis, the growth in all other private sector industry clusters is expected to be relatively modest. Page 54 of 114 Northern Labor Shed – Industry Cluster Projected Growth 48 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN NORTHERN LABOR SHED PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER, 2016-2021 -30% -20% -10% 0% 10% 20% 30% 40% 50% -1,000 -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 Numeric Increase Percentage Increase Projected job growth in Georgetown’s Northern Labor Shed will largely mirror that of Georgetown. Healthcare, Retail, Construction, Entertainment,and Finance are projected to propel more than 70% of all employment gains within the Northern Labor Shed through 2021. Together, Electronics, Education, and Back Office job growth is anticipated to fuel less than 15% of job growth within the Northern Labor Shed. Employment in Government is expected to account for more than 11% of all job growth. The collective employment gains of all other industry clusters is expected to be relatively limited. Page 55 of 114 Southern Labor Shed – Industry Cluster Projected Growth 49 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN SOUTHERN LABOR SHED PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER, 2016-2021 0% 10% 20% 30% 40% 0 5,000 10,000 15,000 20,000 Numeric Increase Percentage Increase In many ways, projected growth for the Southern Labor Shed is similar to that of Georgetown. There are, however, several notable exceptions, and employment growth within the Southern Labor Shed is expected to be fueled by a greater variety of industry clusters. Similar to both Georgetown and the Northern Labor Shed, the Entertainment, Healthcare, and Retail clusters are projected to lead job growth. Together, these three industry clusters are expected to account for 45% of all new jobs within the Southern Labor Shed through 2021. Notably, the Software/IT cluster is projected to create more than 11% of all new jobs in the Southern Labor Shed during this period. No other industry cluster is expected to enjoy a greater rate of growth. Construction, Back Office, and Finance are projected to drive more than 20% of Southern Labor Shed employment growth during this period. Research and Professional Services are expected to make significant contributions to job growth as well Page 56 of 114 City of Georgetown – Occupation Cluster Past Performance 50 GEORGETOWN MAJOR OCCUPATIONAL CLUSTERS*, 2016 0 1 2 -10% 0% 10% 20% 30% 40% 50% 60% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING Engineering Construction Mechanics Legal Medical Finance Computer Education Sales & Marketing Design ProductionLogistics Social Services Personal Services Hospitality *Clusters with employment of 100 of more are displayed BusinessBack Office Communications Every major occupational cluster experienced employment growth in Georgetown between 2011 and 2016. All but four clusters posted double-digit gains during this period. The two fastest growing clusters were Medical and Legal occupations. Both occupational clusters grew by more than 50% over the past five years. Employment in the Construction, Computer, Engineering, Hospitality, and Finance clusters all increased by at least 25%. Notably, Computer occupations are Georgetown’s most concentrated occupational cluster. On a per capita basis, Georgetown is home to 80% more Computer positions relative to the US average. Employment in Georgetown’s Construction cluster is 50% more concentrated relative to the US average.Other concentrated occupational clusters include Personal Services and Communications. Page 57 of 114 Northern Labor Shed – Occupation Cluster Past Performance 51 GEORGETOWN’S NORTHERN LABOR SHED MAJOR INDUSTRY CLUSTERS*, 2016 0 1 2 -10% 0% 10% 20% 30% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING*Clusters with employment of 200 of more are displayed Engineering Construction [53%, 1.3 LQ] Computer Medical Communications Sales & Marketing Production Plant Operations Legal Education Personal Services Business Social Services Finance Logistics Hospitality Mechanics Design Back Office While the industry composition of Georgetown’s Northern Labor Shed is similar to that of Georgetown itself, the two geographies differ more significantly in their respective occupational compositions. Employment in the Northern Labor Shed increased across virtually all major industry clusters, though the rate of growth was typically more modest. Between 2011 and 2016, the two fastest growing occupational clusters within the Northern Labor Shed included Construction and Finance. Employment in Construction and Finance increased by 53% and 22%, respectively. Other fast growing occupational clusters included Medical, Hospitality, and Logistics. The Northern Labor Shed features four occupational clusters that are more concentrated locally relative to the national average – Medical, Hospitality, Personal Services, Mechanics, and Education. Over the past five years, Social Services was the only occupational cluster to experience a decline in employment within the Northern Labor Shed. Page 58 of 114 52 GEORGETOWN’S SOUTHERN LABOR SHED MAJOR INDUSTRY CLUSTERS*, 2016 0 1 2 3 -10% 0% 10% 20% 30% 40% Strong, Declining Strong, Growing LO C A T I O N Q U O T I E N T , 2 0 1 6 LOCAL GROWTH, 2011 - 2016 Weak, Declining Weak, Growing SOURCE: EMSI / AVALANCHE CONSULTING*Clusters with employment of 1,500 of more are displayed Southern Labor Shed – Occupation Cluster Past Performance Education Engineering Social Service Production Logistics Legal Sales & Marketing Back Office Medical Mechanics Communications Business Hospitality Computer Construction Personal Services Finance Design Performance Georgetown’s Southern Labor Shed is growing faster than its Northern Labor Shed, though not as fast as Georgetown itself. The Southern Labor Shed also features several significant employment differences from both Georgetown and the Southern Labor Shed. Most notably, Computer occupations are the fastest growing and most concentrated cluster within the Southern Labor Shed. Employment in this cluster increased by more than 35% between 2011 and 2016. On a per capita basis, the Southern Labor Shed is also home to more than twice as many Computer positions compared to the US average. Other high growth clusters in the Southern Labor Shed include Construction, Design, and Performance. Employment in all three clusters increased by more than 30% during the past five years. Four other clusters posted employment gains of at least 20% during this period – Communications, Finance, Business, and Medical. The Communications cluster is also the second most concentrated cluster within the Southern Labor Shed. Other relatively concentrated clusters include Back Office, Sales & Marketing, Legal, and Engineering. Page 59 of 114 City of Georgetown – Occupation Cluster Projected Growth 53 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER*, 2016-2021 0% 15% 30% 45% 60% 0 200 400 600 800 Numeric Increase Percentage Increase *Clusters with projected employment growth of 20 of more are displayed As noted earlier in this report, total employment in Georgetown is projected to increase by 4,350 between 2016 and 2021. Nearly one in every three of these jobs are projected to be either Medical or Hospitality occupations. The Back Office and Personal Services clusters are expected to be responsible for another 25% of all expected job growth within Georgetown during this period. Four other clusters are expected to post job gains of at least 200 positions through 2021 – Computer, Construction, Education, and Logistics. Collectively, the Production and Mechanics clusters are projected to create more than 300 jobs. Several higher skill, higher wage clusters are expected to experience more modest growth on an absolute basis within Georgetown during the next five years. These clusters include Finance, Business, Engineering, Legal, and Architecture. Though job creation in these clusters is expected to be limited on a net new job basis, all are projected to post double-digit employment gains during the next five years. Page 60 of 114 Northern Labor Shed - Occupation Cluster Projected Growth 54 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN NORTHERN LABOR SHED PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER*, 2016-2021 0% 5% 10% 15% 20% 25% 30% 35% 40% 0 1,000 2,000 3,000 4,000 Numeric Increase Percentage Increase *Clusters with projected employment growth of 30 of more are displayed Occupational growth trends for Georgetown’s Northern Labor Shed closely mirror those of Georgetown. The four occupational clusters expected to experience high levels of growth are identical for both geographies – Medical, Hospitality, Back Office, and Personal Services. Collectively, these four occupational clusters are projected to generate nearly 55% of all new jobs within the Northern Labor Shed between 2016 and 2021. Three other clusters are expected to create more than 1,000 jobs each during the next five years – Construction, Logistics, and Education. Together, these three clusters are projected to account for nearly 25% of all new jobs in the Northern Labor Shed during the next five years. The Financial, Computer, Mechanics, and Business clusters are each expected to create between 500 and 600 jobs during this period. On a net basis, job growth in all other occupational clusters within the Northern Labor Shed are projected to be relatively modest. Page 61 of 114 Southern Labor Shed – Occupation Cluster Projected Growth 55 SOURCE: EMSI / AVALANCHE CONSULTING GEORGETOWN SOUTHERN LABOR SHED PROJECTED EMPLOYMENT GROWTH BY INDUSTRY CLUSTER*, 2016-2021 0% 10% 20% 30% 40% 0 5,000 10,000 15,000 20,000 25,000 Numeric Increase Percentage Increase *Clusters with projected employment growth of 100 of more are displayed The occupational clusters projected to experience the greatest growth in the Southern Labor Shed differ slightly from those of Georgetown and its Northern Labor Shed. While Medical occupations are expected to post the greatest increases on a net basis in both Georgetown and the Northern Labor Shed, employment gains in the Southern Labor Shed are projected to be led by the Hospitality and Back Office clusters. Together, these two clusters are expected to account for approximately one in every three new jobs created in the Southern Labor Shed between 2016 and 2021. Employment growth in the Medical, Personal Services, and Computer clusters is also expected to be substantial. Collectively, these three clusters will account for an anticipated 30% of all new jobs during this period. Other leading sources of employment growth are expected to include Logistics, Business, Finance, Construction, and Education. Page 62 of 114 Occupational Wage Comparison 56 SOURCE: EMSI / AVALANCHE CONSULTING WAGES BY OCCUPATIONAL CLUSTER* 2016 *Clusters with employment of 100 in Georgetown of more are displayed Sales & Marketing Business Computer Legal Engineering Financial Education Social Service Medical Mechanics Back Office Personal Services Construction Production Logistics Hospitality $0 $10 $20 $30 $40 $50 $60 Georgetown Northern Labor Shed Southern Labor Shed Wages for most occupations are higher in the Southern Labor shed than in Georgetown. In turn, wages in Georgetown are typically higher than in the Northern Labor Shed. Still, there are several notable exceptions to these trends. Average hourly wages for the Sales & Marketing, Computer, Engineering, and Production clusters in Georgetown exceed those of both labor sheds. In several instances, the wage premium in Georgetown is significant. Sales & Marketing workers in Georgetown, for example, earn nearly 15% more on average than workers in the Southern Labor Shed and 25% more than workers in the Northern Labor Shed. Conversely, average hourly wages for the Education, Social Service, Medical, Construction, and Logistics clusters in Georgetown trail both labor sheds. Again, the differences can be significant. The average hourly wage for a Medical worker in Georgetown, for example,is 25% less than for such workers in the Southern Labor Shed. Page 63 of 114 01 Virtually all employment and occupational clusters in Georgetown and its labor sheds are projected to post employment gains through 2021. Total employment within Georgetown is projected to increase approximately 16% between 2016 and 2021, a net gain of approximately 4,350 jobs. Expected job gains will include virtually every industry and occupational cluster. 02 Employment growth within Georgetown is expected to be dominated by a handful of industrial and occupational clusters. While most of Georgetown's industry and occupational clusters are projected to enjoy growth during the next five years, the gains will be disproportionately driven by healthcare and consumer spending. Healthcare alone is expected to account for 20% of all jobs in Georgetown through 2021. 03 While wages in Georgetown’s Southern Labor Shed are generally higher than in Georgetown itself, there are several notable exceptions. Average hourly wages in Georgetown are approximately 10% less than in the Southern Labor Shed. For clusters such as Sales & Marketing, Computer, Engineering, and Production, however, average wages in Georgetown are higher than in either the Southern or Northern Labor Shed. Workforce Profiles Key Takeaways 57Page 64 of 114 05 SWOT Analysis The Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis on the following pages summarizes Georgetown’s competitive position in four categories – Economic Trends, Education & Workforce,, Infrastructure, and Quality of Life. The conclusions in this section are drawn from data findings in this report and stories shared by Georgetown stakeholders through interviews and focus groups. They also draw from the consulting team’s national perspective and expertise. 58Page 65 of 114 Economic Trends 59 OPPORTUNITIES Historically, Georgetown has not been viewed by outsiders as a place to do business. As Austin and the inner ring of communities in the metropolitan area become highly developed, more and more business and residents are looking for opportunities further out from the core. Combined with new leadership and a commitment to support economic development, Georgetown is poised to create many new primary jobs. STRENGTHS Georgetown’s employment base continued to experience significant growth. Between 2011 and 2016, the rate of job growth in Georgetown has been more than 50% higher than the Texas average and more than twice the US average. In recent years, the City of Georgetown has become more supportive of business and residential growth. Several residents noted that local political leaders are very accessible. Georgetown is a “get things done” type of community. Alongside a surprisingly large manufacturing cluster for such an attractive community, Georgetown also has an emerging “Maker” culture. THREATS Despite growth, Georgetown still has a relatively low share of non-service, primary jobs, and many higher-paid residents actually work outside of the city. In order to sustain growth and maintain a diverse tax base into the future, the city must continue to focus on industry diversification and primary job creation. The comparative difference between the national unemployment rate and Georgetown’s unemployment rate has recently narrowed. 2017 represented the first time in a decade that the city’s unemployment rate was within a half of a percentage point of the US average – possibly indicating a slowing of growth. WEAKNESSES In the past, Georgetown was often viewed as a difficult place to do business. Although conditions have changed, these impressions take time to change. Employment in Georgetown is disproportionately reliant on locally serving industries such as construction, retail, and related service sectors. Average wages for some industries in Georgetown are less than the national average as well as the city’s broader labor shed. This dynamic may make it more difficult for local employers to recruit workers from outside the city. Under current employment projections, employment gains will be disproportionately concentrated in a handful of clusters. Page 66 of 114 Education & Workforce 60 OPPORTUNITIES A new bus system in Georgetown may make it easier to hire lower wage workers residing outside the city. Several employers in the service industries cited the lack of transit options as an obstacle to hiring workers. Southwestern University is currently working with donors to fund more internships and develop more relationships with employers in the city. Georgetown ISD has faced many challenges in shifting from a primarily rural district to one of the fastest growing in the state. They have made significant gains in STEM education, CTE programming, and overall outcomes. Through partnerships with local employers and organizations, their story can be better told to internal and external audiences. Georgetown typically imports younger, lower-skill workers and exports older, professional workers. As a result, new and existing professional companies located in Georgetown have access to a surplus of talent. STRENGTHS Georgetown is a very educated community – 44% of Georgetown residents age 25 and older possess a bachelor’s degree or higher level of educational attainment. Through the Labor Shed, Georgetown employers are able to draw workers from a pool of 700,000 workers. Employers generally reported that finding workers with trade skills was fairly easy. Employers have also been very successful recruiting workers from outside the region to live in Georgetown. Georgetown is home to a large veteran population. The city’s proximity to Fort Hood likely contributes to an additional influx of veterans. Employers cited relatively low turnover among professional staff. THREATS Many employers – particularly in retail, restaurants, and other service sectors – will face continued and growing hiring challenges if affordability and transportation issues are not addressed. Challenges hiring service workers will put upward pressure on wages and make operating in Georgetown more difficult. If Georgetown’s population growth continues to be heavily concentrated among retirees, the city will continue to have relatively low workforce participation and smaller overall labor force gains. While high school graduation rates and test scores in Georgetown ISD exceed the Texas averages, they trail those of many other school districts within the Austin region. WEAKNESSES Employers report significant challenges hiring and retaining lower-income workers – many of whom cannot afford to live in Georgetown. Most of these local jobs are filled by non-residents. There is a common perception that Georgetown ISD is performing less well than neighboring districts. Georgetown does not have a higher education presence other than Southwestern University. Although there is no ACC district in Georgetown, the city is in the ACC service area, which can create challenges to working with other technical training providers. On a proportional basis, Georgetown is home to a much smaller young professional population relative to the rest of the region. Man of the better educated residents are actually retired. Page 67 of 114 Infrastructure 61 OPPORTUNITIES Despite significant population growth, Georgetown has plenty of land available for further residential, commercial, and industrial development. Georgetown’s municipal airport is already home to a flight training facility and has additional land ripe for development. Southwestern University possesses an abundance of land that may be suitable for additional development. New investments at Longhorn Junction are preparing that area of town for rapid office, commercial, and other growth in coming years. STRENGTHS Georgetown is making investments in infrastructure. There is currently $200 million in planned infrastructure citywide. Georgetown’s proximity to interstate 35 and SH 130 provide the city with strong connections to the rest of Central Texas and the nation Georgetown’s commitment to renewable energy is attractive to many businesses and provides a sustainable source of power into the future. Georgetown Municipal Airport is an important economic development asset for the city – supporting flights for executives, corporations, and general aviation activity. THREATS Rapid population growth has increased traffic congestion throughout Georgetown. If traffic concerns are not addressed within the community, it will affect the city’s small town appeal. If zoning for commercial and industrial land is not preserved in undeveloped areas, rapid residential growth could potentially erode some of these properties and prevent future primary job expansion in the city. Lack of public transportation options inside Georgetown and connecting to the broader region will continue to create challenges for hiring lower- income workers – many of whom lack a personal vehicle. It also creates internal challenges for students, lower-income residents, and some elderly residents who face mobility challenges. WEAKNESSES The City has been chasing growth with infrastructure improvements. As a result, many residents note increased traffic due to new population. Many areas desirable for commercial and industrial growth currently lack water and wastewater infrastructure. Residents and business owners repeatedly complained about congestion and overall urban design of Williams Drive. Several residents and business owners noted that internet service is not reliable everywhere in the city. Some areas of the city are not pedestrian friendly. Page 68 of 114 Quality of Place 62 OPPORTUNITIES Georgetown has made significant investments in its park system and other recreational amenities. While Georgetown’s rich recreational offerings are widely loved by residents, its not clear that outsiders are aware of such amenities. Although Georgetown’s downtown is already home to several restaurants and retail outlets, there remain opportunities for additional establishments. Many residents would like to see more businesses with consistent and later hours. STRENGTHS Employers widely reported the ease of recruiting outside talent to Georgetown due in part to the city’s reputation and attractive quality of life. Existing residents have highly positive views of the community. As one resident observed, Georgetown has the perfect mix of history, industry, and livability. Georgetown has a large, vibrant arts community and unique downtown. Georgetown is a highly multi-generational and engaged community – with an active volunteer population of all ages. The trail and park systems in the city are excellent and celebrated by residents. Overall Georgetown is a naturally beautiful and physically attractive city. THREATS Some employers experience difficulty recruiting younger workers to the areas, as other communities in Central Texas feature more amenities aimed at young professionals. Home prices continue to rise, forcing many workers to live in neighboring communities that offer more affordable housing. Residents remain divided on the area’s growth, with newcomers and young people generally more receptive to further expansion. Growth is occurring and inevitable at this point – residents and leaders must work to shape this growth. Rapid population growth may make it more difficult for Georgetown to retain its small town charm. WEAKNESSES Housing affordability was brought up as a top concern by residents throughout stakeholder input. Many also expressed a need for more diverse housing types to attract and retain younger residents – including more walkable, dense urban living options. Residents repeatedly expressed a desire for more retail and restaurants. During focus groups with the community, many residents discussed the need for additional healthcare facilities to serve local population needs. Page 69 of 114 CITY OF GEORGETOWN TARGET INDUSTRY ANALYSIS AUGUST 18, 2017 avalanche Page 70 of 114 About the City of Georgetown Economic Development Target Industry & Workforce Analysis In April 2017,the City of Georgetown initiated the development of an Economic Development Target Industry &Workforce Analysis aimed at diversifying the local economy,increasing business investment throughout the city,and fully leveraging hometown talent. Through a competitive bidding process,the City of Georgetown retained Avalanche Consulting,a national economic development consultancy based in Austin,TX,to facilitate the preparation of the Economic Development Target Industry &Workforce Analysis. Georgetown residents and businesses were invited to share their perspectives and vision for the community through an online survey and a series of individual interviews and focus groups. Once complete,the Economic Development Target Industry &Workforce Analysis will have two primary phases: Phase 1:Workforce Analysis The Economic Development Target Industry &Workforce Analysis begins with an exploration of Georgetown's competitive position. The study team examined a range of local assets and quantitative metrics to better understand the city’s evolving economy and population.In addition to data analysis,the study team conducted multiple focus groups and interviews.All input is then distilled into a concise SWOT summary outlining the community’s strengths,weaknesses,opportunities,and threats. Phase 2:Target Industry Analysis This second phase of the Economic Development Target Industry &Workforce Analysis includes the target industries and niche sector recommendations of the consulting team’s.By targeting specific industry clusters,the City of Georgetown can more strategically invest in those factors such as infrastructure or workforce training programs necessary to spur job creation within the community.Target industry identification blends industry location quotient analysis with a review of data trends,SWOT evaluation,and city priorities. Page 71 of 114 2 Why Target? Identifying target industries is an important part of effective economic development.No community can be all things to all businesses.Instead the most successful communities identify their key competitive strengths and focus their economic development activities on those industry industries that best match those strengths. Targeting specific industries is not only about attracting new businesses to a community.It is about understanding and addressing the needs of existing businesses;it is about fostering an environment that encourages new businesses to form locally;and it is about aligning activities in pursuit of a shared vision for the entire community. Focusing on target industries also does not mean that other businesses are ignored.Economic development activities are aimed at improving the overall economy in Georgetown for all businesses.Investments and programs designed for target industries should benefit all sectors of the local economy. The following Target Industry Analysis provides a list of recommended target industries for the City of Georgetown and an explanation of how each of these industries and their niche sectors were identified. This analysis also includes profiles of each target industry.These profiles include a general description of each industry,their economic trends,and related locational requirements –such as workforce,infrastructure,and regulatory needs.Each industry profile also includes descriptions of specialized niched sectors that present strong opportunities for growth in Georgetown.The profiles conclude with a sample of sales messages that describe a business case for growing each industry in Georgetown. This report is a resource for leadership,economic development partners,and citizens.It should help everyone better understand the business opportunities that exist in Georgetown and provide a platform on which to develop strategies to grow these industries. Page 72 of 114 Table of Contents The Target Industry Profiles provide greater detail about each industry,their location needs,and the opportunity they present for Georgetown. TARGET INDUSTRY PROFILES PAGE 26 The Target Industry Analysis begins with a discussion on how industries were evaluated. The section then includes a series of recommendations on specific target industries and niche sectors for the City of Georgetown. TARGET INDUSTRY RECOMMENDATIONS PAGE 4 Page 73 of 114 01 Target Industry Recommendations This section of the report describes the criteria used to evaluate potential industries and recommends specific target industries and niche sectors for the City of Georgetown. 4Page 74 of 114 5 Target Industry Identification Selecting targets is an iterative process –using quantitative and qualitative information to identify targets that offer the greatest opportunities for a community based on local assets,needs,and desires. The consulting team asked four primary questions to filter potential industries: 1.Is the industry growing and projected to grow within Georgetown,the Austin Metro,Texas,and the US? Communities should focus their economic development efforts on industries that offer the highest return on investment.Investing in industries that are declining or likely to decline in the future is typically a poor use of resources. 2.Does the industry already have a presence in Georgetown? Industries with an existing presence in Georgetown may reflect local competitive advantages.Concentrated industries may also offer strong opportunities for expansion,recruitment,and startup growth with continued support. 3.Does the industry match Georgetown’s assets? The Workforce Analysis and this Target Industry Analysis report identify numerous competitive assets and opportunities in Georgetown. Potential target industries were evaluated based on their compatibility with these assets. 4.Does the industry align with Georgetown’s goals and vision? Industries were evaluated based on their ability to support the goals and values identified in conversations,focus groups,and interviews with Georgetown leadership,stakeholders,and City staff. Page 75 of 114 6 Competitive Strengths & Opportunities Georgetown has numerous strengths and opportunities that make it a competitive location to grow and attract businesses.Some of the primary assets and strengths considered when selecting target industries include: •Historically,Georgetown was often viewed as a bedroom and retirement community,but in recent years,the city has seen rapid job growth in conjunction with population growth.As central Austin and the inner ring of metropolitan area communities become highly developed,Georgetown is increasingly viewed as an attractive and affordable location for a range of industries. •Retired residents of Georgetown are highly active in the community and regularly volunteer their time and skills.This large population is highly educated and many have retired from successful business careers.They can offer tremendous benefit to local companies and entrepreneurs as part-time employees,advisors,and mentors. •Local elected leaders and City staff are proactively supportive of growing new businesses in the city. •Georgetown has a relatively large manufacturing sector for a community of its size.Alongside this employment base,the city also has a surprisingly strong Maker culture that encourages experimentation and development in skilled manufacturing. •Georgetown is home to a wealth of talent.Residents are highly educated –with 44%holding a bachelor’s degree or higher – but a majority (75%)of working residents commute out of the city to their jobs each day.Many of these residents would prefer not to commute and present a large pool of potential workers for businesses located in the city. •In addition to out-commuting residents,employers in Georgetown are able to draw from a labor force of 700,000 workers spread across the city’s North and South labor sheds.Each labor shed has unique characteristics –including high concentrations of Medical and Construction occupations in the North and a high concentration of Computer occupations in the South. •Georgetown is home to a large veteran population,and the North labor shed encompasses Fort Hood. •Georgetown offers a high quality of life,and employers report high success recruiting workers from outside the region to live in the city.Employers generally reported that finding skilled trade workers was relatively easy,but some worry that rising cost of living and traffic congestion are making it harder to find low-skill workers. •Education is a major strength in Georgetown.Southwestern University is located in the city,and an Austin Community College campus is located in Round Rock .The East Williamson County Higher Education Center has campuses in Hutto and Taylor.The Georgetown Independent School District has also made significant gains in STEM education and Career &Technical Education (CTE)programs in recent years. •Georgetown’s commitment to renewable energy resources is attractive to many businesses –especially in clean energy.Page 76 of 114 7 Georgetown Target Industry Recommendations Based on the analysis conducted through this selection process,Avalanche recommends three target industries and nine niche sectors for the City of Georgetown.Research &Development is an additional target that underlies all three industries. The profiles in the following section provide additional detail about each target and why they make sense for Georgetown. RESEARCH & DEVELOPMENT Advanced Manufacturing Life Sciences Professional Services Aerospace & Aviation Clean Energy Technology Electronics & Component Manufacturing Creative Design Engineering Services Software & Information Technology Healthcare Services Medical Technology Pharmaceuticals TARGET INDUSTRY NICHE SECTORS Page 77 of 114 8 Target Industry Alignment Economic development activities are supported by more than the City of Georgetown.It is important to consider how each target industry fits into regional and statewide programs. Georgetown is part of Opportunity Austin,an economic development initiative representing the multi-county and multi-city Austin metropolitan region.Georgetown is also supported by Team Texas and the Texas Governor’s Office of Economic Development and Tourism .These groups have identified statewide target industries and created programs to support their growth. Not every statewide or regional target aligns with those of Georgetown,but each local target should fit into the broader framework.By aligning targets,the City of Georgetown will be able to leverage marketing,education,financial,and other supportive resources provided by the state and region. Local economic development efforts must also highlight the opportunities that make Georgetown unique within the Austin region and within Texas .When a target industry business is considering expanding or relocating in Texas or Austin,Georgetown should be top of mind as a potential location. GEORGETOWN TARGET OPPORTUNITY AUSTIN TARGET TEXAS TARGET Advanced Manufacturing Advanced Manufacturing Advanced Technology & Manufacturing Clean Energy & Power Technology Energy Space Technology Aerospace, Aviation,& Defense Life Sciences Life Sciences Biotechnology & Life Sciences Professional Services Creative & Digital Media Technology Information & Computer Technology Page 78 of 114 02 Target Industry Profiles The profiles on the following pages provide greater detail about each of Georgetown’s target industries and their niche sectors.Each profiles includes an overview of the industry –describing its activities,business location factors,and recent employment trends.The profiles then highlight global forces that may impact each industry’s future.The consulting team also shares local sales messages that demonstrate Georgetown’s appeal to each target industry.Each profile concludes with a discussion of the availability of workforce supporting each industry in Georgetown’s North and South Labor Sheds. These profiles are meant to serve as a reference to the City of Georgetown, its partner organizations,city residents,and local businesses.The profiles should arm the community with information to help make more informed decisions about strategic programs and investments. 9Page 79 of 114 10 Advanced Manufacturing Source: Moman Architecture Advanced Manufacturing Aerospace & Aviation Clean Energy Technology Electronics & Component Manufacturing Page 80 of 114 INDUSTRY OVERVIEW Advanced Manufacturing involves the transformation of raw materials into component pieces and finished products using complex machinery and sophisticated production processes.Despite the national media’s focus on the decline of US manufacturing,its employment has increased every year since 2010 and currently employs more than 3.6 million Americans. Modern Advanced Manufacturing is distinguished by its reliance on advanced technology and a skilled labor force.Many Advanced Manufacturing occupations require specialized training to operate complex machinery.As a result,Advanced Manufacturing operations often seek locations with a strong technical college or other training systems.High demand for these skilled workers often supports relatively high wages in this industry. Advanced Manufacturing operations typically require plentiful, affordable energy supplies.Advanced Manufacturing subsectors may also require sizable natural gas,water,and wastewater capacity.Proximity to an interstate is preferable to help facilitate delivery of both raw materials and finished products.Available rail access may also be a consideration. Advanced Manufacturing jobs are already highly concentrated in Georgetown –with 2,000 jobs and an LQ of 2.76 –more than double the concentration in Austin.Advanced Manufacturing jobs are also growing more rapidly in Georgetown and forecast to continue rapid growth into the near future.11 Advanced Manufacturing 3,598,100 285,900 32,200 2,000 US TX Austin MSA Georgetown ADVANCED MANUFACTURING EMPLOYMENT, 2016 Source: EMSI / Avalanche Consulting 1.00 0.95 1.34 2.76 US TX Austin MSA Georgetown ADVANCED MANUFACTURING LOCATION QUOTIENT, 2016 7% 10% 87% US TX Austin MSA Georgetown 0% ADVANCED MANUFACTURING EMPLOYMENT GROWTH, 2011 –2016 Page 81 of 114 GLOBAL FORCES Manufacturing employment in the US declined for three decades as companies moved operations abroad to secure cheaper labor.In recent years,however,US Manufacturing has enjoyed a resurgence as domestic production becomes more globally competitive.Increased automation and the continued adoption of robotics have helped make US manufacturers more productive. Rising foreign labor costs have increased the cost competitiveness of US workers,and declining commodity prices,including domestic energy prices,have lowered the cost of US production and transportation. While automation makes US manufacturers more competitive,it is also changing the nature of manufacturing work –eliminating the need for some positions,creating others,and requiring overall greater training of workers. While increased productivity has helped the US maintain its position as the world’s second-largest producer of manufactured goods,a rise in the sense of nationalism in the US and other countries has raised the specter of a trade war that would threaten domestic manufacturing.Additionally,possible renegotiations of trade agreements such as NAFTA would could have significant impacts on US manufacturing. 12 Advanced Manufacturing $84,600 $96,100 $121,300 $108,100 US TX Austin MSA Georgetown ADVANCED MANUFACTURING AVERAGE SALARY, 2016 Source: EMSI / Avalanche Consulting 1% 0% 6% 30% US TX Austin MSA Georgetown ADVANCED MANUFACTURING FORECAST EMPLOYMENT GROWTH, 2016 –2021 Page 82 of 114 NICHE SECTORS Aerospace &Aviation Aerospace and Aviation includes companies involved in the design,manufacture,and operation of various forms of aircraft and their components.Whereas Aviation-related aircraft operate within the Earth’s atmosphere,Aerospace-related aircraft typically extend beyond the Earth’s atmosphere and into space.Both industries have experienced growth in recent years with private space exploration driving an expansion of the the Aerospace sector and increased demand for international air travel fueling new aircraft production.The emerging Unmanned Aerial Vehicles (UAV)market,expected to double during the next 10 years,represents another major growth area. Maintenance,Repair,and Overhaul (MRO)operations are another important segment of this sector.These services are performed by the airlines themselves or independent contractors in centralized,regional facilities.With numerous airlines competing for space at busy major airports,many are looking for MRO locations outside larger metropolitan areas where they can conduct these activities at lower costs. Clean Energy Technology Clean Energy Technology covers operations focused on the development and manufacturing of products and processes to reduce carbon output.These technologies are most often utilized in transportation,energy production and transmission,and energy efficiency. The rise of Clean Energy Technology has been primarily driven by emission standards and other regulations,fluctuating energy costs, changes in consumer attitudes,and an influx of R&D.The International Renewable Energy Agency (IRENA)projects that employment in clean energy will triple worldwide to 24 million by 2030. Companies involved in Clean Energy Technology seek locations with an established technology industry,a strong research university, and existing energy expertise. 13 Advanced Manufacturing Page 83 of 114 Electronics &Component Manufacturing Electronics &Component Manufacturing includes the manufacture,design,development,assembly,and servicing of electronics and components featuring integrated circuits.According to a 2016 analysis by IBISWorld,the global consumer electronics manufacturing industry was valued at $286 billion.The industry is divided into four key segments:government products,industrial products,consumer products and electronics components.Companies in this industry must invest substantial resources into research and development to constantly improve parts,products,and the processes to improve them,specifically to keep up with the demand for new technologies and green/energy efficient products.Key areas of future growth include:automotive,mobile devices,healthcare,communications,and data processing. Important site location considerations for companies in the Electronics &Component Manufacturing sector include a highly-skilled workforce,energy availability and affordability,and proximity to interstate. 14 Advanced Manufacturing Page 84 of 114 LOCAL SALES MESSAGES •Georgetown is already home to a highly-concentrated and rapidly growing Advanced Manufacturing industry.The success of existing businesses highlights Georgetown’s competitive position. •Alongside manufacturing employers,Georgetown is a ”Get Things Done”community.Many adults and youth in Georgetown embrace a “Maker”culture focused on innovative manufacturing and design. •Georgetown benefits from a logistically strong geographic location –with easy access to Interstate 35,State Highway 130,and rail service from both Burlington Northern Santa Fe and Union Pacific railroads. •There is plentiful commercial and industrial land available for development in Georgetown,and the City continues to plan for the future and make infrastructure investments necessary to accommodate growth. •Georgetown Municipal Airport is an important asset for the city –supporting flights for executives,corporations,and general aviation activity.The airport has surrounding land available for development and already supports a flight training school •In partnership with the airport and others,the Georgetown ISD recently completed a program where students designed and built an actual airplane,which was flown before graduation. •The City of Georgetown’s commitment to renewable energy is attractive to many businesses for a variety of reasons –including cultural fits,co-branding opportunities,and cost assurances.The renewable energy commitment will ensure a sustainable source of electricity into the future. •Advanced Manufacturers in Georgetown can draw from an available labor force of over 30,000 workers in supportive occupations across both labor sheds. •Georgetown is home to a large veteran population,and employers draw workers from as far north as Fort Hood –helping capture existing military and other skilled trade workers. •Existing employers generally have good success finding skilled trade workers locally and recruiting workers from outside the region.Additionally,Austin Community College,East Williamson County Higher Education Center,the University of Texas,Texas State University,Texas State Technical College,and other regional institutions offer training programs in a wide range of skills required in this industry. •Georgetown is part of the Austin Metro –one of the most innovative regions in the world,with a host of companies and institutions conducting cutting edge research and development in clean energy technology and other manufacturing sectors.15 Advanced Manufacturing Page 85 of 114 GEORGETOWN WORKFORCE Georgetown has access to a large Advanced Manufacturing workforce,with 6,000 individuals in supportive occupations in the North Labor Shed and nearly 28,000 workers in the South Labor Shed.The largest occupational categories of workers available are Other Production Occupations (which include a mix of operators,inspectors,and other miscellaneous positions),Assemblers &Fabricators, and Metal Workers &Plastic Workers . 16 Advanced Manufacturing 474 668 691 1,053 1,645 1,785 2,102 4,691 6,490 8,135 GEORGETOWN SOUTH LABOR SHED –2016 Source: EMSI / Avalanche Consulting 100 127 210 326 328 360 366 1,159 1,556 1,558 GEORGETOWN NORTH LABOR SHED –2016 $52.72 $14.05 $19.09 $11.18 $12.28 $11.30 $27.53 $14.05 $14.80 $16.48 INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Metal & Plastic Workers Other Production Occs. Assemblers & Fabricators Supervisors of Workers Textile & Furnish. Workers Woodworkers Food Processing Workers Plant & System Operators Printing Workers Air Transp. Workers Other Production Occs. Assemblers & Fabricators Metal & Plastic Workers Textile & Furnish. Workers Supervisors of Workers Food Processing Workers Printing Workers Woodworkers Plant & System Operators Air Transp. Workers $40.66 $24.42 $13.34 $16.58 $13.11 $29.98 $10.73 $17.17 $15.40 $16.13 INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Page 86 of 114 17 Life Sciences Life Sciences Healthcare Services Medical Technology Pharmaceuticals Page 87 of 114 INDUSTRY OVERVIEW The Life Sciences industry covers a range of technology,products, and services meant to enhance the biological functions of animals, crops,and humans.This includes production,processing,and sales of crops and livestock agricultural products.It also covers the provision of medical care in hospitals,outpatient care,dental work,urgent care,elderly care,and veterinary offices–as well as the development and manufacture of products that promote human and animal health.Population growth,demographic change, technological innovation,global markets,and consumer preferences are all driving gains in this industry. The location of Life Sciences operations is usually driven by the size and dynamics of local populations and the presence of research facilities in specialty fields.Hospitals and outpatient operations provide healthcare services to the residents of a community and often cluster in hubs to serve a broader region.Serving a larger, regional population allows industries to develop specialized care facilities.Pharmaceuticals,medical technology,and other related operations tend to cluster in centers that also feature a university research facility.The Life Sciences require significant education and training for their workers,including medical doctors,nurses, therapists,and technicians. Life Sciences are currently less concentrated in Georgetown than the national average –with an LQ of 0.87 –but more than the Austin Metro.In recent years,Life Sciences jobs have grown more rapidly in Georgetown and are expected to continue that trend.18 Life Sciences 9,337,500 747,200 99,100 1,500 US TX Austin MSA Georgetown LIFE SCIENCES EMPLOYMENT, 2016 Source: EMSI / Avalanche Consulting 1.00 0.93 0.75 0.87 US TX Austin MSA Georgetown LIFE SCIENCES LOCATION QUOTIENT, 2016 9% 12% 23% 35% US TX Austin MSA Georgetown LIFE SCIENCES EMPLOYMENT GROWTH, 2011 –2016 Page 88 of 114 GLOBAL FORCES A variety of factors are contributing to the growth of the Life Sciences industry.The aging US population continues to create new demands for healthcare services.New medical devices,therapies, and pharmaceuticals increase both the demand and costs of healthcare.Ongoing changes to insurance and regulation add further complexity to an exceedingly intricate marketplace. Rising costs are directly changing the Healthcare Services sectors – increasing the number of hospital system mergers,as they seek to reduce costs through consolidation.The drive for cost reduction is also leading to new emphases in the delivery of healthcare service. More doctors are prioritizing patient outcomes and focusing on behavioral,lifestyle,and wellness strategies.These in turn push growth in wellness products. Technology is also a primary global driver in this cluster.Mobile devices and software are allowing doctors to reduce costs by providing distance treatment.The capture,consolidation,and analysis of patient data and human genetic and biological information is leading to more personalized and effective treatments and medicines. Growth in the Life Sciences industry is unlikely to slow in the years ahead.Strong demand in this industry far exceeds any concerns related to cost structure and pricing or changes in regulatory compliance.19 Life Sciences $54,800 $50,000 $59,400 $45,400 US TX Austin MSA Georgetown LIFE SCIENCES AVERAGE SALARY, 2016 Source: EMSI / Avalanche Consulting 13% 18% 21% 27% US TX Austin MSA Georgetown LIFE SCIENCES FORECAST EMPLOYMENT GROWTH, 2016 –2021 Page 89 of 114 NICHE SECTORS Healthcare Services Healthcare Services covers the hospital systems,home healthcare,diagnostics laboratories,independent physician offices,and other ambulatory healthcare services that serve a community or region.Regional healthcare service providers can offer specialty treatment centers unavailable in smaller communities.The sector is largely driven by population dynamics and benefits from strong educational support. Medical Technology Medical Technology includes the development and design of products used to monitor,diagnose,and treat a wide array of medical conditions and diseases.Advancements in the sector provide improved health outcomes and cost savings through earlier and more accurate diagnosis,less invasive treatment options,and reduced hospital stays and rehabilitation times.Products include everything from smartwatches to home diagnostics to 3D printed biological material. Pharmaceuticals Pharmaceuticals are medicines designed and manufactured to treat human diseases and other ailments.The development of pharmaceuticals relies heavily on specialized research –often performed through partnerships between universities and private businesses.Production of pharmaceuticals relies heavily on chemical manufacturing skills and processes.Pharmaceuticals and new medicines receive the highest amount of R&D expenditures of any sector in the US. 20 Life Sciences Page 90 of 114 LOCAL SALES MESSAGES •Georgetown is already home to a small but rapidly growing Life Sciences industry –including private companies in pharmaceuticals and other biotechnology areas. •Georgetown features two world class hospital systems with an additional facility just outside the city limits –St.David’s Georgetown Hospital and the Georgetown Scott &White Clinic.The Seton Medical Center Williamson County and Scott &White Hospital are also located in close proximity to Georgetown. •The hospital systems offer an extensive suite of general and specialized services. •Scott &White recently opened a cancer research facility in nearby Round Rock. •The Georgetown Health Foundation is dedicated to supporting the healthcare system in Georgetown and owns extensive land that could be developed into an expanded medical district. •Georgetown is well-located geographically –nearby to the University of Texas,Texas A&M,and other cutting-edge Life Sciences research and education institutions.There are numerous institutions across the Austin Metro focused on innovation and technological development in this industry. •As the geographic core of Austin becomes more expensive,many entrepreneurs are seeking more affordable,high-quality locations with access to talented workers in the area.Georgetown is a perfect fit for these growing ventures. •Georgetown’s rapidly growing overall population and large retired community create high demand for healthcare services in the area.The local population also provides opportunities for development and testing of new products and services in this industry. •Austin Community College,East Williamson County Higher Education Center,and other regional educational institutions provide extensive training in Life Sciences fields.The new University of Texas Medical School in Austin will also be a tremendous resource for the regional Life Sciences industry. 21 Life Sciences Page 91 of 114 GEORGETOWN WORKFORCE Life Sciences employers in Georgetown can drawn from an abundant pool of workers in both labor sheds.The North Labor Shed includes over 16,000 Life Sciences workers,and the South Labor Shed covers nearly 58,000 similar workers.The largest category of workers is Health Diagnosing &Treating Practitioners –which include doctors,nurses,surgeons,pharmacists,therapists,and many more.The North Labor Shed in particular has a high concentration of all these occupations. 22 Life Sciences 694 815 1,916 1,920 7,725 7,773 14,201 22,729 GEORGETOWN SOUTH LABOR SHED –2016 Source: EMSI / Avalanche Consulting 122 172 186 224 1,660 2,678 4,123 6,855 GEORGETOWN NORTH LABOR SHED –2016 $36.34 $23.22 $29.33 $23.11 $15.36 $10.87 $20.98 $42.52 INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Health Diagnosing & Treating Practitioners Health Technologists & Technicians Nursing, Psychiatric, & Home Health Aides Other Healthcare Support Other Healthcare Practitioners Life Scientists Occupational & Physical Therapists Physical Scientists $24.21 $29.10 $34.16 $32.40 $12.05 $17.13 $21.80 $47.59Health Diagnosing & Treating Practitioners Health Technologists & Technicians Other Healthcare Support Nursing, Psychiatric, & Home Health Aides Life Scientists Physical Scientists Other Healthcare Practitioners Occupational & Physical Therapists INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Page 92 of 114 23 Professional Services Source: Tour Texas Professional Services Creative Design Engineering Services Software & Information Technology Page 93 of 114 INDUSTRY OVERVIEW Professional Services includes a wide range of skilled services that often support other industries –from accounting and engineering to creative design and software development.With a heavy focus on the research and development of new products,systems,and software,Professional Services are often a source of innovation. Professional Services is also one of the largest industries in the US, with 9.3 million workers. Professional Services operations have minimal infrastructure requirements.Office space and high-speed internet are usually the basic requirements for a firm to operate.Instead,talent availability is more important.If they are to thrive,Professional Services firms must be able to attract and retain talent.Quality of life is another critical location factor,as it facilitates the ability of Professional Services firms to recruit and retain the best talent.As a result, Professional Services firms often cluster in larger,centralized locations with plenty of amenities and in cities with universities that can provide a continuous supply of new workers with the latest skills. With 1,400 employees,Professional Services is less concentrated in Georgetown than the overall Austin Metro –with a local LQ of 0.73 compared to 1.59 regionally.The industry is rapidly becoming more concentrated in Georgetown –growing 66%over the past five years and projected to grow another 28%over the next five. 24 Professional Services 9,337,500 747,200 99,100 1,400 US TX Austin MSA Georgetown PROFESSIONAL SERVICES EMPLOYMENT, 2016 Source: EMSI / Avalanche Consulting 1.00 0.96 1.59 0.73 US TX Austin MSA Georgetown PROFESSIONAL SERVICES LOCATION QUOTIENT, 2016 16% 23% 47% 66% US TX Austin MSA Georgetown PROFESSIONAL SERVICES, EMPLOYMENT GROWTH, 2011 –2016 Page 94 of 114 GLOBAL FORCES Professional Services is currently one of the most dynamic industries worldwide.This industry thrives in areas where there is a strong private sector supported by government with stable regulatory environments,strong intellectual property protections,and a reliable judicial system.For such reasons,the US continues to be the most desirable location for Professional Services firms. The rise of cloud computing,combined with a continued increase in the number of devices capable of producing data,has propelled an explosion in information worldwide;according to an estimate from IBM,90%of all information ever created has been produced in just the past two years.Numerous subsectors have risen up in the Software &Information Technology field to find new ways of using this data to improve efficiencies in markets and better deliver a wide range of services to customers. Continued development of artificial intelligence (AI)could potentially impact the Professional Services industry as once complex tasks become simplified and automated.Already we have seen the introduction of IBM’s Watson in cancer research,tax preparation and aircraft maintenance.The impacts of AI on this and other industries remain unknown,but even if it eliminates some jobs, it has the potential to create new opportunities in programming and applications. 25 Professional Services $95,800 $90,600 $94,500 $69,600 US TX Austin MSA Georgetown PROFESSIONAL SERVICES AVERAGE SALARY, 2016 Source: EMSI / Avalanche Consulting 10% 15% 22% 28% US TX Austin MSA Georgetown PROFESSIONAL SERVICES FORECAST EMPLOYMENT GROWTH, 2016 –2021 Page 95 of 114 NICHE SECTORS Creative Design Creative Design covers individuals and businesses that offer contracted design services in a number of specialty areas,including graphic design,interior design,and industrial design.Design services are used in everything from film and technology to manufacturing and architecture.The most basic form of design includes the preparation of graphics and images for websites, marketing materials,logos,and signage,along with numerous other business needs.The more technical side focuses more on design for physical space,objects and processes including building interiors,user interfaces,industrial systems,and consumer product design. The Creative Design sector,like all Professional Services,is driven by availability of skilled talent. Engineering Services Engineering Services encompass professional businesses that provide contracted applied engineering services in a range of fields, including structural,mechanical,industrial,electrical,and other engineering fields.These engineering experts are critical to constructing,upgrading,and maintaining complex modern manufacturing facilities and machinery,designing buildings,and supporting a range of physical activities.Engineering businesses tend to cluster in proximity to their primary clients –manufacturers,builders,and utilities.This sector hires employees with advanced degrees –at a minimum bachelor’s degree holders and often master’s.As a result, engineering firms frequently choose locations with a high quality of life to aid employee retention and attraction. Software &Information Technology Software &IT includes organizations and individuals in software design and publishing,custom computer programming,computer systems design,and data processing facilities management.Data storage and utilization and cyber security are some of the major growth areas for this sector as the amount and sensitivity of data online increases exponentially.Software and IT is a very enterprising sector with small and medium-sized firms representing almost 99%of the industry. 26 Professional Services Page 96 of 114 LOCAL SALES MESSAGES •Georgetown is part of the Austin Metro –one of the most dynamic centers of Professional Services in the country.Although Professional Services jobs are currently less concentrated in Georgetown,the industry is growing more rapidly locally than the entire region,state,or nation. •Georgetown is a highly attractive place to live,and employers widely report that recruiting outside talent to Georgetown is an easy task.Given the industry’s emphasis on talent availability and quality of place,Georgetown provides a competitive location to recruiting and retain skilled workers. •Georgetown is already home to many individuals employed in Professional Services who currently work for employers located outside of the city.Employers opening,expanding,or relocating to Georgetown can potentially draw from this wealth of existing local talent –in addition to a pool of more than 75,000 workers to the South. •Georgetown is already home to a large share of professionals who work from home or small startups. •The City continues to make strategic investments in infrastructure and quality of life assets that make Georgetown an attractive place to live.The city benefits from a large,vibrant arts community;a unique downtown;extensive,high-quality parks and trails; and an overall attractive built and natural environment. •In addition to the Georgetown Municipal Airport,the city has relatively easy access to Austin Bergstrom International Airport – both of which are positive assets for business travelers and executives in Professional Services. •Current residents of Georgetown hold very positive views of their community.As one resident observed,Georgetown has the perfect mix of history,industry,and livability.The city is also multi-generational and engaged –with an active volunteer population across ages –an attractive feature to many professionals. 27 Professional Services Page 97 of 114 GEORGETOWN WORKFORCE Professional Services supportive workers are much more concentrated in the Georgetown South Labor Shed than the North.The South Labor Shed has over 75,000 workers in occupations that support Professional Services,while the North Labor Shed has slightly under 5,000.Across both labor sheds,the largest category of Professional Services workers available to employers in Georgetown are Software Developers &Programmers and Engineers. 28 Professional Services 494 1,433 1,830 3,744 7,375 7,531 9,421 10,188 11,958 21,533 GEORGETOWN SOUTH LABOR SHED Source: EMSI / Avalanche Consulting 32 109 277 366 387 405 610 733 769 1,022 GEORGETOWN NORTH LABOR SHED –2016 $41.94 $30.14 $37.26 $41.14 $17.64 $40.53 $27.90 $25.15 $48.12 $46.02 INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Engineers Software Developers Computer Specialists Drafters / Eng. Techs. Database & System Admin. Art & Design Workers Computer & Info. Analysts Misc. Computer Occs. Architects, Surveyors, Carts. Computer & Info Research Sci. Software Developers Engineers Computer & Info. Analysts Computer Specialists Drafters / Eng. Techs. Database & System Admin. Art & Design Workers Architects, Surveyors, Carts. Misc. Computer Occs. Computer & Info Research Sci.$47.25 $40.93 $33.66 $25.25 $45.82 $29.67 $25.76 $41.23 $49.54 $45.79 INDUSTRY SUPPORTIVE WORKERS AVERAGE HOURLY $ Page 98 of 114 Research &Development (R&D)involves targeted efforts to innovate,introduce,and improve a product or process.Companies invest in R&D to maintain their competitiveness,to develop new products,or to identify new markets or uses for existing products.As the US economy has become increasingly knowledge based,the number of R&D jobs has continued to increase.During the past 15 years, private R&D employment has increased three times faster than the US average for all industries. R&D expenditures by US businesses currently exceed $340 billion annually.Such spending is disproportionately concentrated in a handful of industries and locations.Just two industries –Manufacturing and Software/IT –account for more than 80%of domestic R&D expenditures.Additionally,half of all R&D spending in the US is absorbed by five states,including Texas . Manufacturing R&D is focused primarily on the improvement or development of systems,machines,processes,and/or products. Manufacturing accounts for more than two-thirds of R&D expenditures in the US,dominated by the Chemical and Computer/Electronic Products sectors. Research and Development is a sustaining factor in the Life Science industry with activities spanning from drug development and delivery to the application of bio-tech research.Pharmaceuticals alone represent 16%of all US R&D expenditures. Software and IT dominate the Professional Services industry with more than $63 billion in annual R&D expenditures.Primary activities include product development and application. 29 Research & Development Page 99 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Cons id eration o f the June and July, 2017 financ ial rep o rts. Leigh Wallac e, F inanc e Manager, GEDCO, Financ e Direc tor, COG ITEM SUMMARY: See Attachments FINANCIAL IMPACT: None SUBMITTED BY: Leigh Wallace, Financ e Manager, GEDCO F inanc e Direc tor, COG ATTACHMENTS: Description Type Report Cover Memo Page 100 of 114 GEDCO Board Meeting Date: August 21, 2017 Item No. __________ GEORGETOWN ECONOMIC DEVELOPMENT CORPORATION AGENDA ITEM COVER SHEET _________________________________________________________________ SUBJECT: Consideration of the June 30, 2017 and July 31, 2017 financial reports. Leigh Wallace, Finance Manager, GEDCO, Finance Director, COG. _________________________________________________________________ ITEM SUMMARY: The corporate bylaws require the Finance Manager to present the monthly financial reports to the Board. Included in these reports will be: • Financial reports • Sales Tax revenues • Monthly expenditures • Any other relevant financial information Sales tax revenue is two months in arrears. Included in this report is the sales tax revenue collected in May and June for sales in March and April. Payments made to vendors in the months of June and July are also included. ATTACHMENTS: Monthly Financial Reports Sales Tax History SUBMITTED BY: Leigh Wallace Finance Manager, GEDCO Finance Director, COG Page 101 of 114 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION YEAR-END VARIANCE % YEAR-END VARIANCE BEGINNING FUND BALALNCE 5,015,684 5,068,518 52,834 1.05% Revenue OPERATING REVENUES Sales Tax 1,468,750 112,816 875,323 1,581,250 112,500 7.66% Interest 10,400 4,384 29,018 34,171 23,771 228.57% Miscellaneous Revenue 60,321 - 60,302 60,321 - 0.00% Lease Revenue (Grape Creek)48,000 4,000 40,000 48,000 - 0.00% OPERATING REVENUES TOTAL 1,587,471 121,200 1,004,643 1,723,742 136,271 8.58% OPERATING EXPENDITURES Joint Services Allocation 197,722 16,477 148,293 197,722 - 0.00% Supplies 300 53 193 300 - 0.00% Special Services 7,500 - 33 7,500 - 0.00% Travel & Training 1,500 - - 1,500 - 0.00% Promotional & Marketing Program 81,000 7,185 63,190 81,000 - 0.00% Miscellaneous Expense 10,321 - 10,302 10,302 (19) -0.18% OPERATING EXPENDITURES Total 298,343 23,715 222,011 298,324 (19) -0.01% TOTAL NET OPERATIONS 1,289,128 97,485 782,632 1,425,418 136,290 0.11 NON-OPERATING EXPENDITURES Avalanche Consulting, Inc 100,000 30,650 100,000 100,000 - 0.00% Bond Issuance Costs - - (114) (114) (114) 0.00% Catalyst 24,000 9,053 14,427 23,000 (1,000) -4.17% Debt Service 115,839 - 66,679 115,839 - 0.00% DisperSol 60,000 - 10,000 60,000 - 0.00% Economic Development Projects -Undetermined 5,200,322 - - - (5,200,322) -100.00% Interest Expense 111,463 - - 111,463 - 0.00% Principal Reduction 100,000 - - 100,000 - 0.00% Radix 50,000 - - - (50,000) -100.00% Rentschler Brewing LLC 70,000 - 70,000 70,000 - 0.00% Tasus 6,000 - - - (6,000) -100.00% Texas Life Sciences 100,000 - - - (100,000) -100.00% NON-OPERATING EXPENDITURES Total 5,937,624 39,703 260,992 580,188 (5,357,436) -90.23% EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (4,648,496) 57,782 521,641 845,230 5,493,726 -118.18% ENDING FUND BALANCE 367,188 5,913,748 5,546,560 1510.55% Georgetown Economic Development Corporation Fund Year End Projection to Approved as of June 2017 Page 102 of 114 APPROVED BUDGET CURRENT PERIOD YEAR TO DATE (W/ENCUMB) YEAR-END PROJECTION YEAR-END VARIANCE % YEAR-END VARIANCE BEGINNING FUND BALALNCE 5,015,684 5,068,518 52,834 1.05% Revenue OPERATING REVENUES Sales Tax 1,468,750 125,728 1,001,051 1,581,250 112,500 7.66% Interest 10,400 5,154 34,172 34,171 23,771 228.57% Miscellaneous Revenue 60,321 - 60,302 60,321 - 0.00% Lease Revenue (Grape Creek)48,000 4,000 44,000 48,000 - 0.00% OPERATING REVENUES TOTAL 1,587,471 134,882 1,139,525 1,723,742 136,271 8.58% OPERATING EXPENDITURES Joint Services Allocation 197,722 16,477 164,770 197,722 - 0.00% Supplies 300 - 193 300 - 0.00% Special Services 7,500 - 33 7,500 - 0.00% Travel & Training 1,500 - - 1,500 - 0.00% Promotional & Marketing Program 81,000 - 66,940 81,000 - 0.00% Miscellaneous Expense 10,321 - 10,302 10,302 (19) -0.18% OPERATING EXPENDITURES Total 298,343 16,477 242,238 298,324 (19) -0.01% TOTAL NET OPERATIONS 1,289,128 118,405 897,287 1,425,418 136,290 0.11 NON-OPERATING EXPENDITURES Avalanche Consulting, Inc 100,000 15,700 100,000 100,000 - 0.00% Bond Issuance Costs - - (114) (114) (114) 0.00% Catalyst 24,000 2,833 14,979 23,000 (1,000) -4.17% Debt Service 115,839 - 66,679 115,839 - 0.00% DisperSol 60,000 - 10,000 60,000 - 0.00% Economic Development Projects -Undetermined 5,200,322 - - - (5,200,322) -100.00% Interest Expense 111,463 - - 111,463 - 0.00% Principal Reduction 100,000 - - 100,000 - 0.00% Radix 50,000 - - - (50,000) -100.00% Rentschler Brewing LLC 70,000 - 70,000 70,000 - 0.00% Tasus 6,000 - - - (6,000) -100.00% Texas Life Sciences 100,000 - - - (100,000) -100.00% NON-OPERATING EXPENDITURES Total 5,937,624 18,533 261,543 580,188 (5,357,436) -90.23% EXCESS (DEFICIENCY) OF TOTAL REVENUE OVER TOTAL REQUIREMENTS (4,648,496) 99,871 635,743 845,230 5,493,726 -118.18% ENDING FUND BALANCE 367,188 5,913,748 5,546,560 1510.55% Georgetown Economic Development Corporation Fund Year End Projection to Approved as of July 2017 Page 103 of 114 As of July 31, 2017 Georgetown Economic Development Corporation Sales Tax History Variance % Var. MONTH [a]2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 To FY 16 To FY 16 October 70,264$ 86,324$ 91,863$ 98,094$ 106,050$ 114,748$ 8,698$ 8.20% November 74,472 82,083 99,552 102,891 112,766 125,214 12,448$ 11.04% December 111,968 117,582 134,682 143,774 148,200 160,542 12,342$ 8.33% January 73,177 82,714 89,357 87,695 96,563 110,006 13,443$ 13.92% February 72,946 77,890 86,901 89,107 108,117 105,556 (2,561)$ -2.37% March 105,822 115,564 114,355 123,951 133,492 137,301 3,809$ 2.85% April 81,362 84,420 106,002 102,671 108,977 117,261 8,284$ 7.60% May 80,919 94,412 112,572 95,699 120,418 125,188 4,770$ 3.96% June 99,664 114,132 123,306 130,589 142,767 151,484 8,717$ 6.11% July 89,969 92,765 102,435 108,994 119,534 August 85,792 92,735 98,015 102,888 132,582 September 88,334 125,197 119,473 125,201 135,378 Total 1,034,688$ 1,165,819$ 1,278,513$ 1,311,554$ 1,464,844$ 1,147,300$ YTD 770,592 855,121 958,590 974,471 1,077,350 1,147,300 69,950 6.49% Notes: [a]Sales tax revenue from the State Comptroller is received two months in arrears. Sales tax for December is actually received in February $- $20,000 $40,000 $60,000 $80,000 $100,000 $120,000 $140,000 $160,000 $180,000 Re v e n u e s Sales Tax 3 Year Trend 2014-15 2015-16 2016-17 Page 104 of 114 • Economic Development Projects: - Catalyst Commerical, Inc. - Avalanche Consulting, Inc. • Promotional & Marketing Programs - D&L Printing Page 105 of 114 • Economic Development Projects: - Catalyst Commerical, Inc. - Avalanche Consulting, Inc. • Promotional & Marketing Programs - Austin Chamber Opportunity Austin Page 106 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Disc ussion and p o s s ib le ac tion regard ing the S taff Report —David Morgan, City Manager -P erformance Agreement Report -Report from P lanning -Retail Stud y Up d ate -Ac tivity Report -Other Pro jec ts ITEM SUMMARY: The GEDCO Board has req uested that staff p ro vide a projec t p ro gress and s tatus report at eac h meeting o n all of the ac tive p ro jects disc ussed b y the Bo ard . FINANCIAL IMPACT: N/A SUBMITTED BY: David S. Morgan, C ity Manager ATTACHMENTS: Description Type Project Report Cover Memo Activity report Cover Memo Page 107 of 114 Name Description Start Date (Council Approved)End Date $ Encumbered $ Expended Citigroup Grant for wastewater infrastructure for construction of datacenter. 12/12/2006 12/31/2018 $ 1,300,000 $ 1,300,000 DisperSol Grant for job creation related to expansion of manufacturing facilities.10/16/2014 2/15/2019 250,000$ $ 80,000 Grape Creek Grant for reimbursement of Qualified Expenditures for the lease/purchase and future site improvements at 101 E. 7th Street and 614 Main Street for the operation of a winery on the Downtown Square. 8/23/2011 3/1/2018 280,000$ 280,000$ Grape Creek GEDCO purchase of building. GCV currently under lease/purchase agreement with right to exercise purchase at end of PA for $447K.8/23/2011 3/1/2018 447,000$ 447,000$ Lone Star Circle of Care Grant for Qualified Expenditures for future site improvements at 205 East University Avenue, Georgetown, Texas. Loan Agreement and Promissory Note have been executed. 6/28/2011 11/30/2017 387,000$ $ 387,000 Radiation Detection Corporation Grant for Qualified Expenditures and job creation related to the relocation of the corporate offices to Georgetown. 7/23/2013 12/31/2021 320,000$ 320,000$ Radix BioSolutions, Ltd. Provided grant to assist with the work and future plans of Radix BioSolutions at the TLCC. Radix paid back $47K on 3/15/15. Radix paid back $50K 3/10/16. Radix paid back $50K on 3/10/2017 .3/9/2010 3/31/2018 250,000$ $ 103,000 GEDCO - ACTIVE PERFORMANCE AGREEMENTS STATUS REPORT August 21, 2017 Over Page 108 of 114 Economic Development Activity Report Updated August 2017 FY 2017 Projects Won Business CapEx Jobs Sq. Ft. Rentsch Brewery $ 2,600,000 12 7,250 Holt Cat $ 20,000,000 129 60,000 Project Tower $ 2,800,000 TBD 9,500 Ewald Kubota $ 2,980,000 14 10,500 TOTALS $ 28,380,000 155 87,250 0 2 4 6 8 10 12 14 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Lead Activity Leads Rolling 6-Month Average 0 2 4 6 8 10 12 14 16 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Prospect Activity Proposals Site Visits Development Meetings Page 109 of 114 Other Activities: • Retail recruitment ongoing • Target Industry and Workforce Analysis – Presenting to Council August 22, 2017 • Developers roundtable – August 31, 2017 • Showcase Austin – October 12, 2017 • Industry Appreciation month – October 13, 2017 • 2nd Annual Economic Development Symposium – December 11, 2017 • Small Business Expo in partnership with the Chamber – March 1, 2018 • Will be working on a strategic plan in Q4 2017 to present to Council 0 2 4 6 8 10 12 Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 2017 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Business Retention Activity Visits Assistance Requests Touches 6 9 3 7 Current Projects Hot Warm Cold Development Page 110 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Ac tion out of Exec utive S es s io n. ITEM SUMMARY: FINANCIAL IMPACT: TBD SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 111 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Sec. 551.071: CONSULTATION WITH ATTORNEY Cons ultation with atto rney regard ing legal iss ues related to agend a items and o ther matters in which (1) when the go vernmental b o d y s eeks the advic e of its atto rney about: (A) p end ing or contemplated litigation; o r (B) a settlement offer; or (2) o n a matter in whic h the duty of the attorney to the governmental b o d y und er the Texas Dis c ip linary Rules o f Pro fes s ional C o nduct of the State Bar of Texas c learly conflicts with this c hapter - C harlie McNab b , City Atto rney ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 112 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Section 551.072. DELIBERATIONREGARDING REAL PROPERTY Disc ussion and p o s s ib le ac tion to deliberate the purchas e,exchange, leas e o r value o f real p ro p erty for p urposes autho rized by the Develo p ment Corporatio n Act whic h d is cus s ion in open session wo uld have a d etrimental effec t o n nego tiatio ns with third p ers o ns . ITEM SUMMARY: FINANCIAL IMPACT: n/a SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 113 of 114 City of Georgetown, Texas Georgetown Economic Development Corporation August 21, 2017 SUBJECT: Section 551.087. DELIBERATION REGARDING ECONOMIC DEVELOPMENT NEGOTIATIONS. Deliberatio n regard ing c o mmercial o r financ ial informatio n that the c o rp o ratio n has received from a b usines s pros p ec t that the Geo rgeto wn Economic Development Corporation s eeks to have lo cate, s tay, o r expand in or near the territo ry o f the City o f Geo rgeto wn and with whic h the Corporatio n is c o nducting econo mic d evelo p ment negotiations ; and/o r d elib eration regard ing the o ffer o f a financial o r other inc entive to a bus iness pros pec t that the Co rp o ration s eeks to have loc ate, stay, o r expand in or near the territory of the City of Georgetown. - Do wntown Infras tructure Imp ro vements - TLCC ITEM SUMMARY: FINANCIAL IMPACT: N/A SUBMITTED BY: Charlie Mc Nab b , City Atto rney Page 114 of 114