2013/2014 Annual Unit Holders Meeting

2013/2014 Annual Unit Holders Meeting

Executive Summary

Financial update:

For the fifth fiscal year in a row the firm of CBEW has completed our annual audit, with no outstanding issues or concerns.

At the end of the 2013/2014 fiscal year the amount of reserves at the SEDF total, $192,669.56

2013 – 2014 SEDF Resolutions/Formal Letters:

2013/2014-01 – Corporate Authorization to Sign Checks

2013/2014-02 – Public Support of Community Pool in Woodlands Veteran Park

Unit Drive results to date are:

Amount Pledged from 2008-2014/2015: $289,260

Total Pledges/Contributions Received YTD 2013/2014: $45,150

Cumulative Outstanding/Uncollected Pledges YTD: $34,050

Cumulative Pledges Received YTD: $172,300

Cumulative 1-Time Contributions received YTD: $84,910 (majority from CPN & Utility companies)

Measurement & Cumulative Totals

Contacts made per category and per year: 13/14 12/13 11/12 10/11 09/10

Existing Business Contacts / 1997 / 1158 / 1748 / 1441 / 646
New Industry/Business Contacts / 672 / 901 / 744 / 664 / 264
Utilities/Railroad Contacts / 199 / 182 / 300 / 187 / 118
Government Contacts / 809 / 537 / 698 / 814 / 393
Economic Development Associates Contacts / 464 / 444 / 886 / 810 / 523
Media Contacts / 148 / 181 / 256 / N/A / N/A
Other Contacts / 1299 / 1382 / 1146 / 1123 / 590

Projects:

Total number of projects reviewed and worked in 2013 / 101
Total number of projects reviewed and worked in 2012 / 99
Total number of projects reviewed and worked in 2011 / 59
Total number of projects reviewed and worked in 2010 / 65
Total number of projects reviewed and worked in 2009 / 57

Project response and types:FY13/14FY 12/13 FY 11/12FY 10/11

Existing Manufacturing expansions:1086 4

New Industry Manufacturing:351754

Aviation: 1142

Housing11413

Retail: 3124107

Supportive Services: 132710

2013/2014 Goals, Progress Status and Measurement

(Key proposed items that were included in the 2013/2014 Fiscal Budget)

Goal: An increased and strategic effort to increase the skilled labor pool through workforce attraction and talent development, by an increased marketing and awareness program (in a larger area), regarding the available employment opportunities and workforce resources that exist in the Shawnee area.

Progress Status:

The SEDF staff has developed a comprehensive plan to attract and help develop additional workforce in the area. Portions of that plan include the development of a workforce landing page, with a break down of the various categories related to workforce development and attraction, undertaking a heightened effort to reach the GC Tech sending school counselors, superintendents and FFA instructors with tools relevant to careers, training opportunities, available resources and support agencies.

Over the past twelve months staff has distributed over 400 Manufacturers Skills Poster, mostly in the GC Tech sending district, along with over 500 FIND A JOB flyers in that same area.

Staff continues to add and refresh materials on our Workforce Landing Page tied to our website and all of our employment marketing materials together. This past year we were able to develop a Quick Reference guide that we distributed to the High School Superintendents, School Counselors and FFA instructors in the GC Tech sending district.

Staff continues to reach out to the representatives of the Governor and Congressman Lankford’s office regarding the work we are doing with workforce development and asking them for their input, along with any potential areas of funding.

Currently we are in the early to mid stages of redoing the Manufacturers Skills Poster, developing a Vets Quick Reference Guide and updating the Manufacturers Directory. All of these items have multiple connection points on our website, marketing materials and other SEDF related materials.

Additional BR&E efforts have allowed us to explore methods where some of the area’s business can explore the possibility of collaborating with each other on new product development that use more than one company’s products and expertise.

Measurement:

This is the most difficult area related to workforce, as we are not always able to determine if we are achieving our objectives. While we can track the number of requests we get for assistance, (posting job openings, responding to requests for assistance from job seeker, referrals to support agencies, requests for SEDF WF materials), it is difficult to know if someone is hired or our communication efforts were effective.

We can share that we believe we are gaining ground as more and more employers are asking us to post their open job positions, and more individuals are asking us to help them find work or share their resume. Postings on the social media sites have increased, as have the emails and private messages from individuals who are asking us to help them.

Currently we are posting employment information on our own website, in the Monday Memo, on our Facebook page and on the Shawnee Area Online Job Postings Facebook page. We are also taking out ads in the Shawnee Outlook and in an upcoming publication of the News Star.

A less than successful effort this past year was the direct mailing program aimed at reaching out to those in the area that had formerly attended a two or four year school. While we still hold out some hope that this will reach those who fall into that category, so far the results have not proven to be a good method of increasing interest in GC Tech.

Goal: Continued recruitment activity in our retail attraction efforts and conversion of opportunities into active projects with our retail consultant.

Progress Status:

The SEDF continues to market the community though our efforts with Catalyst Commercial and our communication with developers, site selectors and real estate brokers and retailers. We are always striving to increase the number of retailers associated with the retail gaps and retail leakage the community experiences. We are eager to turn opportunities into conversions, (active projects).

Measurement:

Since last year’s report we have seen several significant changes in the retail landscape in the community, which the SEDF has played a role in. While tracking is somewhat subjective, we have seen an increase in requests for land information, including cost comparisons, traffic counts and the surrounding demographics.

There have been some new retailers open in the past year that the SEDF had a role in helping to recruit or assist in the decision to locate here. Some of those include:

Opening of the Lifestyle Center located at 45th and Kickapoo.
The finalization of the land transfer on Kickapoo for the proposed Chick Fil A.
Opening of a new Japanese restaurant at the Mall.
Recruitment of Hunt Properties to Shawnee to develop 120k sq. ft. of a potential 400k sq. ft. retail property,called the Shawnee Marketplace. When completed the project can provide over 800 jobs, plus a significant revenue gain to the City and County. This new retail development will help bring larger scale retailers to our community and help reduce the sales tax leakage the community has been experiencing for the past decade.

Other successful projects were started in 2013/2104 fiscal year including the Panda Express and the Qdoba restaurant.

In a collaborative effort with the City, the SEDF engaged Catalyst Commercial to undertake an impact analysis of the Shawnee Marketplace project. This report was helpful in determining the financial and beneficial impact for both the City and County.

The SEDF continues to work with the management of the Mall by providing data and or possible tenants related to the space vacated by Sears. Work in that area continues as we explore what retailers or other uses might fit that area.

Additionally, the SEDF staff has been supporting the needs of the leasing agent at Del Plaza with the connection to service companies that can support their ongoing upgrades and tenant changes.

The SEDF has now narrowed their focus on attracting specific retailers that would help fill the gaps in our community. While still in the early stages, we will continue to pursue that in the 2014/2015 fiscal year and also we will narrow down the sites that we suggest to them, based upon the developer’s interest in helping us attract the targeted retailers.

With the help of one of the County Commissioners, staff was able to gain access to a large volume of data related to the Hunting, Fishing and Outdoors activities. That information was provided to the developer of the Shawnee Marketplace and the leasing agent of the Mall. Hopefully this data will allow their targeted retailers to understand the Shawnee area with greater clarity.

Staff is also continuing to pursue face to face meetings with these individuals at retail related trade shows such as the ICSC events in OKC and Dallas. These events are where Catalyst Commercial has invited us in to join them in meeting with retail prospects, one-on-one.

Staff continues to maintain contact with a wide variety of individuals who can and are making decisions on where to locate new retail establishments. We reach out to them on a weekly, monthly or quarterly basis by use of the Monday Memo, Facebook or by direct contact in emails or phone calls.

Goal: Maintaining additional focus on our BR&E efforts that will encourage facility expansions in the area, retention and creation of new jobs and the addition of new product lines.

Progress status:

As a cornerstone of what our organizationundertakes on a daily basis, Staff regularly meets with the area manufacturers or other businesses in the area to determine how we might best serve or assist them. The needs of our manufacturing base ranges from helping them secure additional skilled employees to issues related to utilities and transportation. Staff is currently working on matters related to supply chain or vendor needs, along with the review of needs regarding employee screening and health tied to occupational medicine providers.

Measurement:

Additionally this year the SEDF gained three new board members from the area manufacturers, while maintaining our other valued business representatives. This has given our board a better perspective of the challenges all these wealth providers face and increased private contributions to our organization.

We consider the rebuilding of the rail bridge access approaches on either side of the rail bridge that crosses the North Canadian River SE of town to be a long overdue milestone. The SEDF has continued its financial and professional support focused on the effort to reopen the line from Shawnee to McAlester.

As of the end of the 2013/2014 fiscal year, the SEDF was aware of no less than seven different manufacturers that were either currently engaged in expansions or planning such strategies for their local operations within the next twelve months.

Staff was also able to arrange a meeting between two manufacturers and a local entity that uses geothermal technology, to explore possibilities of them developing products that could further the use of energy reduction equipment.

Our regions greatest job growth and capital investment opportunities will come from the manufacturers who are already here.

Goal: Continuation of marketing the community to the site selectors familiar with the OKC area, along with responding to the RFP’s received from the Oklahoma Department of Commerce and others.

Progress Status:

Staff continues to meet with site selectors and business consultants as time and funds allow. Our mix of projects this past year was heavier in the areas of New Industry and Retail Recruitment, with Supportive Services, Housing and Existing Industries rounding out the areas we track.

With the exception of Retail, without doubt the projects with the lowest numbers (identified as projects)will have a greater chance for success than the New Industry projects and at a significantly lower cost of attracting and securing the project.

Other recruitment efforts this past year include but are not limited to:

Undertaking call trips to Atlanta as part of the OKC Regional Partnership efforts, where we met with site consultants, tax advisors and business consultants that represent major businesses who are familiar with Oklahoma and who may have projects in the near future.
Due to the relationships we have with our board members and area businesses, staff was able to meet with others who have an interest in finding new locations for their manufacturing, medical, housing or other service related business.
Meeting with site consultants and tax advisors in professional settings in OKC or in one-on-one meetings, all of which is arranged in conjunction with the OKC Regional Partnership.
Continuing from the 2012/2013 fiscal year trend, referrals, or project opportunities were up in 2013/2104, which allowed us the chance to provide site tours to prospects and/or their consultants.

Measurement:

Staff reviewed over 101 new projects this past year, plus the ongoing work that had begun in the past few years. On average a successful project, (capital investment made, employees hired, product or services being rendered), will take between one to three years from start to finish. Staff is sure we are seeing a larger number of projects due to the marketing and relationships we have been establishing over the past few years, along with a stronger national and global economy.

Goal: Continued financial participation in the City of Shawnee Downtown Façade program.

Progress Status:

The SEDF financially participated in the Downtown Façade program in 2012/2013, but was not asked to do so in fiscal year 2013/2014. However on a similar note the Board of Directors of the SEDF did elect to participate in the Pool Renovation project, with a contribution of $5,000 toward that effort.

Both of these contributions came from the limited amount of SEDF financial reserves, but could easily be classified as part of the Downtown Revitalization efforts.

Measurement:

The downtown area continues to benefit from the funds that the City, SEDF and SIA have contributed to the Façade Program. We are seeing more development of older structures in the downtown area, which only enhances the image of the area to both consumers and additional businesses.

Staff continues to work with prospects that are interested in the downtown area and eagerly await the property listing that is being developed by the City’s Planning Department.

Our office continues to see improvements as being a key factor in the interest of those who call or contact us that are seeking to find available properties in the downtown area.

Goal: Maintain a sustained effort to attract additional financial supporters of the SEDF, predominantly to those manufacturers who have not previously contributed to our organization.

Progress Status:

Staff continues to work with area manufacturers and other businesses that have offered their financial support for our organization and ongoing efforts. We currently have a list ofcompanies we are speaking with who have not made a financial commitment.

Measurement:

The SEDF has gained some limited success this fiscal year, as previously outlined in the explanation of finances at the beginning of this report. We are appreciative of the support shown by these new contributors, plus the continued support of those who have been involved with the SEDF for decades.

Goal: Strengthen our position as a key-manufacturing center in the OKC Metropolitan area.

Progress Status:

Shawnee’s manufacturing base continues to prosper due to several key factors. Strong leadership at the individual facilities, worldwide demand for product and the ability to continue finding, albeit not as much as is desired, a strong skilled workforce. A few examples are:

The acquisition of Woodgroup Pressure Controls by GE Oil & Gas has allowed the local branch of this global company to expand their Shawnee facility, which has led to new equipment being installed and the hiring of additional employees. With the addition of a new GE R&D Center in OKC, the use of this facility could be significantly enhanced. This company has a significant backlog of orders and is racing to meet the demand, and has told the SEDF Board that the Shawnee facility is a one of a kind facility out of all of the GE manufacturing facilities.

Jindal Films has recently acquired the thin films division from ExxonMobil and by all early indications, this will benefit the local facility. While some reduction of jobs has taken place, most of those have been done through retirement and normal turnover. Some of the older non-profitable lines have been closed at this local facility, however the plant has been the recipient of new equipment that was acquired from an ExxonMobil plant in Canada that was closed. The most positive news about the local facility is that it produces a product that Jindal did not have in its portfolio.

Global Production Solutions is expanding its sales territory to west Texas, which will increase the need to produce more products from their facility located just west of Shawnee. This is requiring the company to seek out and hire more skilled employees, to meet the US and Global demand for their products.

Georg Fischer has been acquiring other facilities across the US, to allow them to expand their production capabilities and the local leadership has recently been named the President of Georg Fischer North American operations. Additionally they have increased and are filling some of their key positions with their administrative leadership, with a focus of almost doubling their annual sales.

Wolverine Tube has announced they will continue to bring more Corporate jobs to Shawnee, while developing new manufacturing equipment locally, as well as adding new product lines and considering relocating their R&D Center to the community as well.

Measurement: