Don't Forget to Register for the AAED July Luncheon

Back By Popular Demand....the AAED Update!

Back by popular demand, we will be returning to a PDF

newsletter format of the Update which will feature a variety

of educational articles and columns like the board message,

community and member spotlights, latest dirt, member

news…etc.

The June 2011 Update is available at http://www.aaed.com//updates/AAED-Newsletter_June-7-2011-links-(2).pdf.

 

Please Welcome AAED's New Executive Director, Joyce Grossman

AAED July 2011 Calendar

Save the Date - Governor's Statewide Development Conference

Save the Date - October 26 - 28, 2011

The Arizona Association for Economic Development (AAED) in partnership with The Arizona Commerce Authority (ACA) & Arizona Rural Development Council (AZRDC) are pleased to announce our upcoming Governor's Statewide Development Conference to be held on October 26 - 28, 2011.

This event (formerly named the Governor's Regional and Rural Development Conference) has provided education and networking for both rural and metro communities for over 35 years. Each year we have had attendees that include: elected and appointed officials, city and county staff, tribal leaders, chamber of commerce executives, community and economic developers, architects, engineers, contractors, utility representatives and many support industries.

This nationally renowned conference convenes many disciplines providing information on technical assistance, funding sources, legislative action, networking, success stories and emerging trends in the field of economic development.

Please mark your calendar for this important date and plan to attend!

June 2011 Calendar

Arizona Legislative Scorecard

You can see the whole scorecard at www.Arizonaedp.org 

City of Phoenix Self Certification Program

You may have seen the recent article in the Phoenix Business Journal about the City of Phoenix’s Self Certification program (see link below).  The Self-Certification Program eliminates building plan reviews by allowing a registered architect or structural engineer to take responsibility for code compliance and certify that the project complies with the Phoenix Building Construction Code.

http://www.bizjournals.com/phoenix/print-edition/2011/05/06/phoenix-program-to-streamline-permit.html

This program was brought to our attention and we thought it could be beneficial to the economic development community.  Also, there is a meeting at MAG (Maricopa Association of Governments) this Wednesday in which an overview of the program and results of Phoenix’s pilot program  will be presented to the MAG Building Codes Committee.  Attached, you will find the agenda (item #7) which will provide date/time/location.  We believe this is an innovative approach to speeding up the regulatory process of obtaining a building permit and could be valuable to Arizona economic development professionals.

Sign Up Now - June Phoenix Luncheon

Presenting Your 2011-2012 Board of Directors

Chris Camacho, President

Teri Drew, President Elect

Eric Larson, Vice President

Danielle Casey, Secretary/Treasurer

Lori Gary, Past President

Bennett Curry

Julie Engel

Amanda Jacobs

Knox Kimberly

Pete Klute

Dave Pierzga

Luci Ponticelli

David Bentler

Barry Broome

Stacey Button

Levi Esquerra

Don Helton

Stephanie Hertzberg

Gary Marks

David Welsh

Newly Elected:

Phoenix Metro – Christine Mackay

Phoenix Metro – Kelly Patton

Phoenix Metro – Bruce MacTurk

Metro Tucson – Curt Woody

Metro Tucson – Betty Niles

Non-Metro – Terri Drew

Non-Metro – Denise Steiger

Presenting Your 2011 Committee Chairs / Vice Chairs

ABREC: Michelle Pierson, Chair

Awards Banquet: Jamie Cervantes, Chair   

EDDE Awards: Rock Rickert, Chair

Events: Jamie Seessel, Chair / Kim Shapiro, Vice Chair

ED Workforce: Cynthia Spell Tweh, Chair / Kari Cluff, Vice Chair

Governor’s Conference: Tim Kanavel, Chair / Denise Steiger, Vice Chair

Government Affairs:Tammy Carr, Chair / Rebecca Timmer, Vice Chair

Membership: Deirdre Booth, Chair / Diana Peterson, Vice Chair

Northern AZ Membership: Gary Kellogg, Chair / Stacey Button, Vice Chair

PR/ Communications: Nicole Snyder, Chair

Professional Education: Jennifer Graves, Chair

Rural: L.H. Hamilton, Chair

Southern AZ Membership: Curt Woody, Chair

Spring Conference: Michelle Kelly, Chair / Kristen Howard, Vice Chair

Tribal: Kari McCormick, Chair / Lester Tsosie, Vice Chair

Congratulations to the 2011 EDDE Award Winners

William W. Lampkin, Long Term Excellence in Economic Development Award

Donna Ellsworth-Bolen, Arizona Enterprises

Economic Developer of the Year (Large Community)

Chris Camacho, Greater Phoenix Economic Council

and 

Dan Henderson, CEeD, Town of Gilbert

Economic Developer of the Year (Small Community)

Joshua Wright, Town of Marana

Large Organization of the Year

The Greater Phoenix Economic Council

Workforce Practitioner of the Year            

Carol Curtis, Coconino County Career Center

Member of the Year      

Curt Woody, InCite Consulting                          

New Member of the Year
Michelle Rider, The Greater Phoenix Economic Council

SB1041 Opposition Out in Senate

We have heard from a few senators that those organizations opposed to SB1041 are out in full force, talking to the Senators.

We need your help to shore up votes in the Senate – things are moving very quickly.

Attached is each Senator’s original vote on 1041, along with their phone numbers for you to call. Please check in with your Senator and also those you are familiar with to encourage their support.  Please let us know if you receive any feedback.

State of the City Address - Maricopa

As many municipalities are holding State of the City addresses, we would like to keep you informed. Below is Mayor Anthony Smith’s address regarding the City of Maricopa.

City of Maricopa - http://maricopamatters.com/events.html

If you have a State of the City address you would like to share, please send it to aaedpr@gmail.com

Late-breaking news: SB 1041

SB 1041 has been added to the Rules Agenda for today (Monday Apr 4), so we expect it to start moving quickly.  After Rules it will go to Caucus, then to a full floor debate.  It could see a vote in the House as early as the first part of this week.

Both Republican and Democratic legislators are telling us they like the bill because it provides fair, effective incentives without shifting costs to other taxpayers.

For your convenience, attached is an excellent fact sheet prepared by GPEC that AAED members can use when they talk to legislators.

It’s important that AAED members contact legislators NOW to voice support for SB 1041.  Caucus discussions can influence how a legislator will vote on the floor.

NIGHT GOLF

Bring four clubs and join AAED as we play night golf on tax day!

When:    Apr 15

Time:     Happy Hour 5:30 p.m.
               Shot Gun Start 7:00 p.m.

Where: Shalimar Golf Club Tempe
               2032 E. Golf Ave
               Tempe, AZ 85282

Reserve your space by Apr 13!

State of the City Addresses

As many municipalities are holding State of the City addresses, we would like to keep you informed. Below is Mayor Phil Gordon's address regarding the city of Phoenix.

City of Phoenix - http://phoenix.gov/news/stateofthecity2011.html

If you have a State of the City address you would like to share, please send it to aaedpr@gmail.com

Monday Morning Quarterback - A Quick Analysis of Important Economic Data Released Over the Last Week

Submitted by: Elliott D. Pollack & Company (EDPco) 

Finally, some local employment growth was realized.  Overall, the week’s data was good nationally and suggested that the long awaited turn around in Arizona might finally have arrived.  But don’t expect a whole lot out of this year. 

NATIONAL

The latest release on unemployment insurance claims brings the moving average to its lowest level since July, 2008. This signals continued progress.

 

The Purchasing Manager’s Index for the manufacturing sector released by the Institute of Supply Management is now at its highest level since May 2004.  This suggests that the manufacturing sector continues to gain ground. The index was 61.4 in February 2011 vs. 57.1 in February 2010 and 60.8 in January 2011.  The Manufacturing Employment Index component was at its highest level since January 1973.  It was 64.5 in February 2011 vs. 57.3 in February a year ago and 61.7 in January 2011.

Fourth quarter GDP increased by 3.1%.  This is in line with our expectations.  The GDP deflator for personal consumption expenditures increased by 1.7% in 2010 versus.0.2% in 2009.

Both new and existing home sales showed continued weakness nationally.  New home sales in February 2011 were 28% below year earlier levels.  This reflects the ending of the $6,500 tax credit offered by the Federal Government until April, 2010, the continued high level of oversupply of both new and existing homes, and continued tight credit markets.  Existing home sales fell by 2.8% in February 2011 versus the same period a year earlier after three months of increases.

ARIZONA

Arizona personal income increased by 2.1% in 2010. This put Arizona in the bottom quintile in terms of PI growth in the US last year.  The range was 0.3% for Nevada to 4.2% for New Mexico.

Arizona employment was up 0.2% in February 2011 versus year earlier levels.  This is the first year-over-year increase (revised data) since the recession began in Arizona.  The biggest gains were in education and health services (14,600 jobs), trade, transportation and utilities (4,800 jobs) and leisure and hospitality (4,400 jobs). Manufacturing was up 300 jobs.  It's a start.

Greater Phoenix employment was up 0.7% in February 2011 versus a year earlier but employment in Greater Tucson was down (1.3%).

The unemployment rate in Arizona was 9.6% versus 10.2% a year ago and 8.9% for the US as a whole in February 2011.

According to a report released by the Arizona Department of Revenue, Arizona sales and use tax collections showed some life in February (based on January sales).  Retail sales tax collections as a whole were up 10.4% in February 2011 versus February 2010.  Hotel/motel sales tax collections were up 14.9% in February 2011 versus a year ago reflecting a generalized improvement and the effect of the National Championship football game held in Glendale in January.  Restaurant and bar sales tax collections though, were down 0.5% in February 2011.

Expect the modest but positive economic news to continue, albeit with a few hiccups here and there.

For more information visit www. edpco.com

Spotlight on Jamie Cervantes, D.L. Withers

This months spotlight is on an individual who was trusted by the Goldwater family to print photos from Barry’s negatives.  In her past life, she was a manager of a photography studio in northern Wisconsin then she moved to Arizona in the late 1990s and continued with photography.  Over time, she found her way into construction marketing where she still uses her photography skills and her fine arts degree from the University of Wisconsin – Eau Claire.   Please meet Jamie Cervantes of D.L. Withers Construction, an AAED Partner Sponsor ….

1.  What is D.L. Withers' specialty?   D.L. Withers Construction (DLWC) experience spans institutional, industrial, transportation, corporate office, retail, sports and entertainment, cultural, high-capacity parking, healthcare, and educational facilities.  Our firm’s ‘specialty’ is truly three-fold encompassing educational, Class A office, and public safety facilities construction management.
 2.  What is an economic development accomplishment you are most proud of at D.L. Withers?    As a provider, our involvement in economic development involves supporting Arizona’s leading Economic Development organizations and drivers such as GPEC and the Department of Commerce as well as AAED, Tucson Regional Economic Opportunities, and a host of municipal and regional entities. For example, D.L. Withers has been member of the Greater Phoenix Economic Council (GPEC) for 10 years. Dan Withers, President of DLWC, has served on the GPEC board of directors for eight years. Through this alliance, our firm has been instrumental in providing pre-construction services to a number of corporations looking to move to Arizona. DLWC regularly participates in GPEC sponsored site-selection events and conferences to provide information on the state of the construction industry, including estimating and cost data for potential sites or existing facilities being considered. 

3.  What do you enjoy about your job? Being involved in the built environment has long been the place I feel most at home. After years of working with architects and engineers, it’s refreshing to be involved in the true realization of a project with a reputable local contractor.  There is gratification and pride in being able to watch and document a project we worked hard to get; progress from the moment dirt is turned to the day the owner cuts the ribbon.

4.  What value do you place on your AAED membership?
I find that it is true about any organization, what you get out is only as valuable as what you put in.  I am currently a member of the PR/communication, membership and chair of the EDDE banquet committees.  I have made many business and personnel contacts through the organization.  By the way, there is still room on the EDDE banquet committee if you would like to participate.  Email me at:   jcervantes@dlwithers.com .

5.  What is a little known fact about you?  I was fortunate to participate in (with an amazing crew of women) and medal in two of my races at the U.S. Rowing Masters Nationals Regatta in 2010. My goal is to win the gold and one day to row in the Royal Henley Regatta on the Thames (and win!).

AAED Spring Conference 2011

Save the date for the AAED spring conference.  The dates are May 11 -13, 2011 in Prescott at the Prescott Resort and Conference Center.  This is your opportunity to learn how companies and industry are taking a “New Approach” to business.  Make your hotel reservation now and sign up to attend! 

Highlights of this year’s Spring Conference include:

·         Creating an economy of innovation and creativity

·         Celebrating our State’s assets

·         Downtown adaptive re-use solutions

·         Community success and incubators

Some old favorites of the Spring Conference include Golf at the Hassayampa Golf Club, a welcome reception that is one of the premier networking events of the year, and the EDDE awards banquet.

Please note: Registration materials will be arriving in the mail the week of 4/4.

SB 1041 Update

SB 1041 - Invest Arizona - was heard on Wednesday in the House Commerce committee and was approved with a 7-1 vote.

After negotiations between GPEC and the Governor's Office, the bill was amended in the Committee as follows:

·         Removes all the changes to the income tax credits and the premium tax credits that were in the Senate version of the bill.

·         Assesses as Class 6 property, the personal property and real property improvements that are constructed or renovated as of January 1, 2012 through July 1, 2017 and that are owned or used by the qualifying business certified by the newly created Arizona Commerce Authority (ACA).  Limits this classification to a 10-year period.  To qualify, a business must adhere to the following during the 1^st taxable year: 

o   Make a capital investment of at least $5 million and create at least 25 new qualified employment positions within a city/town with a population of 50,000 or more persons and that is located in a county with 800,000 or more persons.

o   Make a capital investment of at least $1 million and create a minimum 5 qualified employment positions in any other location.

·         Requires the business to submit to the ACA a Resolution from the appropriate city/town governing board or county board of supervisors, which acknowledges the business intent to abide by these provisions and consents to the reduced assessed valuation of the property. 

The bill's sponsor, Sen. Michele Reagan (R-Scottsdale) led off the proponents' comments by stating that this will help existing businesses, that it provides something different for rural and urban locations and that it doesn't matter what type of business you have in order to potentially benefit.  Barry Broome from GPEC also testified in favor and stressed that many of the benefits from the Competitiveness Package do not come on-line for several more years, which is why this bill is needed to enhance Arizona's competitiveness immediately.

Not surprising, but the bill was opposed by Kevin McCarthy from the Arizona Tax Research Association (ATRA) and Steve Voeller from the Free Enterprise Club.  Both cited the need for large-scale, comprehensive property tax reform rather than targeted tax benefits for certain businesses.  Disappointingly, the bill was also opposed by Farrell Quinlan of the National Federation of Independent Businesses (NFIB).  The nature of his opposition was "unfairness", but we're still not sure what he meant.

The bill now must be scheduled and heard by the Rules committee, then it goes to Caucus for debate by both political parties, then finally to the floor for further debate and a vote of all House members.

Thank you to Jeff Kros and Triadvocates for this update.  If you have any questions, please feel free to contact Jeff Kros, Julie Rees or Knox Kimberly at Triadvocates.

20111 Arizona Indian Town Hall & Business Summit - Registration Due

Are you interested in working together to develop statewide growth opportunities and initiatives that are sustainable and realistic? Join us for a two-day interactive, idea-sharing conference for both Native and non-Native economic development practitioners, government agency representatives and project stakeholders.

Conference will take place March 22 and 23, 2011

For more information: http://www.aaed.com/Event_Detail.aspx?EventId=1508157

2011 Election to the AAED Board of Directors - Due 3/18

Nominations and required information will be accepted at the AAED offices until March 18^th, 2011

PLEASE NOTE THE DEADLINE CANNOT BE EXTENDED.

Requirements to be placed on the ballot are as follows:

           

1)   10 endorsing signatures from AAED members in good standing (see attached Nominations Form).

2)    A brief biography (500 words max.) stating the candidate’s involvement in AAED.

3)   Signed Board of Directors Candidate Agreement Commitment Form (see attached form).

4)   A Director must have two (2) years experience in development or development activities.

5)   A Director must have a minimum of one (1) year active participation in AAED.

2010 AAED Board of Director Seats Open for Election (7 seats) are as follows:

PHOENIX                   TUCSON                                NON METRO            

3 to be elected            2 to be elected                        2 to be elected

                                   

Current Board Members whose terms continue for one more year:

PHOENIX                   TUCSON                    NON-METRO

Pete Klute                   Amanda Jacobs          Danielle Casey                       

Eric Larson                  Luci Ponticelli              Julie Engel     

Dave Pierzga 

           

(Note that the terms of President Elect, Chris Camacho (to the term as President), President Lori Gary (to the term as Past President) and Arizona Commerce Authority Director Don Cardon (or his appointee), are automatically extended for one year, per AAED bylaws).

The AAED Board of Directors plays an important role in the policy shaping of this organization.  It requires attendance at monthly Board Meetings, and other AAED events throughout the year.  It also requires a commitment to understanding and participating in the AAED Committees and support of increasing our membership with quality members.

Update on SB 1041 – Invest Arizona

During a special session of the Arizona Legislature earlier this year, the House and Senate approved House Bill 2001 - Arizona commerce authority; business incentives - better known as the "Competitiveness Package."  The bill passed mostly along party lines, with all Democrats and a few Republicans opposed.  The Governor signed the bill on February 17th.

State leadership at all levels have indicated they are not done with economic competitiveness measures. State Senator Michele Reagan introduced a bill to complement the Competitiveness Package.  Senate Bill 1041 - Invest Arizona - recently passed out of the Arizona State Senate with the bipartisan support of 24 of the 30 senators.

SB 1041 now goes to the House where it will soon receive committee assignments.

We want to make sure and keep the momentum from the Senate going strong. Please contact your representatives in the House now. Let them know how important SB1041 is to economic development in Arizona.

·         SB1041 – Invest Arizona – passed the Senate by a 24-5 vote recently.

·         You will be discussing the program in committee or caucus soon.

·         This program is extremely important to creating quality jobs in Arizona.

Please find more talking points and information on SB1041 attached, as well as a list of the House of Representatives and contact information.  If you do not know your Senator, you can identify them via this link:

http://www.azleg.gov/alisStaticPages/HowToContactMember.asp.

Finally, there are a number of other bills we are tracking that pertain to corporate income tax rates, the sales factor option, income tax credits and business property tax that are already contained in either SB 1041 or HB 2001 from the Special Session.  Since many of these provisions have already been enacted or are under consideration in SB 1041, we expect these bills to be used as amendment vehicles for unrelated provisions.

Delivering the News

We do our best to cover the economic development scene in Arizona, but we can always use your help. If you or someone in your organization has presented a paper, given a speech, authored an article for a trade journal or otherwise advanced the body of knowledge for the economic development field that you would like to share with your peers, we welcome your input. We probably will not be able to print the entire work, but if it is available on line, we can give a link to it and give you and your organization appropriate credit.