LA PAZ REGION FOCUSED FUTURE II

Transcription

1 LA PAZ REGION FOCUSED FUTURE II Strategic Plan for Economic Development DRAFT October 2012 Sponsored by: Technical support: Partners for Strategic Action, Inc. with assistance from ESI, Corporation Applied Economics, Inc.

2 LA PAZ FOCUSED FUTURE II TABLE OF CONTENTS STRATEGIC PLAN PROCESS... 2 OUR MISSION... 3 STRATEGIC LOCATION... 4 REGIONAL ECONOMY SNAPSHOT... 5 La Paz Population... 5 Labor Force and Unemployment... 6 Median Income... 8 Employment... 8 Retail Sales... 9 Construction Assessed Valuation Municipal Revenues Summary STRATEGIC ACTION PLAN Economic Development Definition Regional Assets and Opportunities Strategic Direction La Paz Vision Strategic Initiatives Growing Our Regional Economy through Business Development Hospitality and Tourism as an Economic Opportunity Healthcare Expansion Community Development Promoting Quality of Life and Livability STRATEGIC IMPLEMENTATION Objectives for Success Roles and Responsibilities Strategic Plan Evaluation and Update APPENDIX Strategic Plan Roles Matrix Glossary Acronyms Acknowledgements P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

3 STRATEGIC PLAN PROCESS In late 2011, leaders within the La Paz area embarked on a very challenging project to develop a comprehensive regional economic development plan called the Focused Future Strategic Plan for Economic Development. The La Paz Economic Development Corporation (EDC) and other key stakeholders are the local sponsors, along with APS, of the Focused Future II process. All of these entities had been actively working together to strengthen the local and regional economy. Both the towns of Parker and Quartzsite had completed Focused Future Strategic Plans in August 1995 and 2008, respectively. The La Paz EDC was established to create economic wealth for all through sustainable improvements in the region s standard of living. The need for La Paz to work even smarter toward its economic goals has never been more pronounced. Focused Future II offered a forum where the regional potential was analyzed, cutting edge economic development initiatives were explored, and community indicators were identified. These indicators will assist the EDC in monitoring success over time. The process goal was to bring citizens, landowners, agencies, policy makers, and other stakeholders together to develop the La Paz Focused Future Strategic Plan for Economic Development. A broad-based citizen and stakeholder committee called the Action Team was organized and met throughout the planning process. They were responsible for working closely with APS and their consultants to complete the project. The general public participated in several events that provided input to the process. A kick-off event held on November 8, 2011provided an overview of the process and presented a regional economic report card and a case study of Lake Havasu City s economic development program. Additional process events included a Mini-Summit and Economic Development Town Hall. The Mini-Summit was held on February 23, Tammy McLeod, Vice President and Chief Customer Officer with APS, discussed outstanding customer service techniques. A presentation and discussion of the City of Goodyear s economic development successes and challenges was led by Brian Dalke, Deputy City Manager. Randy Nelson, Director of the Arizona Small Business Development Center at Arizona Western College, discussed the programs and services available to small businesses throughout La Paz County. The La Paz Economic Development Town Hall brought together residents for a half-day on June 13, 2012 to discuss, debate, and reach consensus on the region s future direction. The Action Team was provided with invaluable input to the planning effort. 2 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

4 The Focused Future II process answered three basic questions: 1. What are the opportunities to successfully strengthen and expand the regional economy? 2. What are the appropriate strategic initiatives for economic development? 3. How should the area collaborate to be successful in implementing these initiatives? OUR MISSION The La Paz Focused Future II Mission is to Create, monitor and implement a realistic, action-oriented strategic plan for community and economic development. Work to achieve the La Paz area economic development definition of improving the quality of life and increasing prosperity in a balanced, sustainable manner. The planning process and ongoing implementation will communicate with and solicit input as well as engagement from citizens. The goal is to improve the La Paz County area s image and quality of life. 3 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

5 STRATEGIC LOCATION La Paz County is located in the middle of western Arizona, strategically positioned to serve the western United States. The county encompasses the towns of Parker and Quartzsite and the unincorporated areas of Salome, Wenden, Bouse, Ehrenberg, and Cibola as well as a major portion of the Colorado River Indian Tribes reservation. Interstate 10 and Highway 95 provide excellent transportation connections. Locally headquartered in Parker, the Arizona California Railroad enables delivery of raw materials and finished products virtually throughout the country. 4 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

6 Population Percent Growth La Paz Focused Future II REGIONAL ECONOMY SNAPSHOT The Regional Economy Snapshot includes eight topic areas population, labor force, income, economy, construction, assessed value, and municipal revenues. The index was made based on 2005 county data relative to statewide trends in order to simplify data. LA PAZ POPULATION La Paz County s population has remained relatively constant with less than a 1 percent annual change since Over the last five years the population of La Paz County has stayed relatively constant. There was a slight downward trend between 2008 and 2010, which resulted in a 200-person population decrease, but this was then reversed by an approximately 250-person population increase in La Paz County Population 21,000 20,900 20,800 20,700 20,600 20,500 20,400 20,300 20,200 20,100 20,000 Population % 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% La Paz County Population Population 20,704 20,604 20,561 20,495 20,730 Annual Growth 0.7% -0.5% -0.2% -0.3% 1.1% Source: Arizona Department of Administration, Office of Employment & Population Statistics 5 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

7 Population growth in Parker and Quartzsite has also been minimal. In terms of demographics, the county s share of population under 18 years of age is significantly lower than the state at 18 percent versus 25 percent. In contrast, the share of population over 64 is more than twice the state average at 33 percent versus 14 percent. These figures do not include seasonal residents who increase the local population in the winter months. It is estimated that 500,000 to 1.5 million visitors come to the region annually. The length of stay varies from a weekend to eight months. Given the aging of the overall population, it is not surprising that public school enrollment has decreased nearly 7 percent in the county since 2005, with declines of 14 to 15 percent over the past five years in the Quartzsite Elementary and Bicentennial Union High School Districts. Population Trends Town of Quartzsite 3,570 3,612 3,626 3,640 3,672 3,677 Town of Parker 3,164 3,131 3,234 3,195 3,175 3,083 La Paz County 20,608 20,554 20,704 20,604 20,561 20,489 State of Arizona 5,924,476 6,116,409 6,274,981 6,368,649 6,389,081 6,401,569 La Paz Index * Annual Growth Rate Town of Quartzsite 2.2% 1.2% 0.4% 0.4% 0.9% 0.1% Town of Parker 0.2% -1.0% 3.3% -1.2% -0.7% -2.9% La Paz County 0.7% -0.3% 0.7% -0.5% -0.2% -0.3% State of Arizona 3.5% 3.2% 2.6% 1.5% 0.3% 0.2% Source: Arizona Department of Administration. * La Paz County compared to Arizona in 2005 = 100. Labor Force and Unemployment The labor force in La Paz County has not changed significantly since 2005, increasing by only 137 people over this period, although it has been consistent with population growth. Employment over this same period is down 119 people. The pattern has been similar but on a smaller scale in Parker and Quartzsite. Labor force participation in the county has remained steady at about 37 percent, compared to just over 50 percent for the state. 6 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

8 Following some slight declines in 2007 and 2008, the total labor force in the county grew by 2.6 percent in 2009 and currently exceeds 2005 levels by about 1.7 percent. In contrast, the state realized 11 percent growth in its labor force from 2005 to 2010, although employment increased by only 5 percent. Similar to the state, La Paz County s 5,000 unemployment rate has increased significantly La Paz County Labor Force since The state went from a low of 3.8 percent unemployment in 2007 to a high of 10 percent in 2010, while La Paz County went from 5.0 to 9.9 percent during that period. Unemployment is generally lower in Quartzsite but much higher on the reservation, compared to the county overall. As of Sept. 2011, the county s unemployment rate was 10.7 percent overall or 7.8 percent without the reservation, compared to 8.9 percent statewide. Labor Force and Unemployment Labor Force and Unemployment Trends Labor Force Town of Quartzsite Town of Parker 1,654 1,662 1,650 1,639 1,679 1,679 La Paz County 7,637 7,670 7,612 7,576 7,773 7,774 State of Arizona (000) 2,859 2,958 3,018 3,117 3,157 3,176 La Paz Index * Annual Growth Rate Town of Quartzsite 0.4% 0.6% -0.6% -1.0% 2.0% 0.0% Town of Parker 0.5% 0.5% -0.7% -0.7% 2.4% 0.0% La Paz County 0.5% 0.4% -0.8% -0.5% 2.6% 0.0% State of Arizona 2.5% 3.5% 2.0% 3.3% 1.3% 0.6% Unemployment Rate Town of Quartzsite 5.4% 4.4% 4.0% 5.9% 7.6% 7.9% Town of Parker 6.3% 5.2% 4.7% 6.8% 8.9% 9.2% La Paz County 6.8% 5.6% 5.0% 7.4% 9.6% 9.9% State of Arizona 4.7% 4.1% 3.8% 5.9% 9.7% 10.0% La Paz Index * Source: Arizona Department of Administration. * La Paz County compared to Arizona in 2005 = ,000 7,500 7,000 6,500 6,000 5, La Paz County Unemployment 11.0% 10.0% 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 7 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

9 Median Income The most valid available measure of income at the local level is per capita income. Despite recent minor declines, per capita income levels in the county increased 7 percent from 2005 to 2010, which is considerably more than the 3 percent increase experienced statewide. However, per capita income in La Paz County is still only 75 percent of the state average. La Paz County median family income increased by 17 percent during the 2005 to 2010 period, compared to 15 percent statewide. Median family income in La Paz County was about 62 percent of the state average in Income data is not available at the city level for cities in La Paz County. Income Growth Per Capita Income La Paz County $22,793 $23,319 $24,721 State of Arizona $31,491 $33,423 $34,365 La Paz Index * Annual Growth Rate La Paz County 3.7% 2.3% 6.0% State of Arizona 6.7% 6.1% 2.8% Mean Household Income La Paz County $63,151 $64,471 $68,046 Annual Growth Rate 3.2% 2.1% 5.5% La Paz Index * Source: U.S. Census Bureau; Woods & Poole, * La Paz County compared to Arizona in 2005 = 100. $40,000 $30,000 $20,000 $10,000 La Paz County Income Growth 45% Employment 40% 35% During the last five years, the county has seen a 30% 25% decrease in overall employment and in the number 20% of establishments through 2010, and very limited 15% 10% growth in La Paz County has a somewhat 5% higher share of its employment base in retail trade, 0% services, and government than the state, and a much lower share of employment in manufacturing and construction. Services make up the largest share of total employment locally at 44 percent, followed La Paz County Arizona by retail at 21 percent. The share of people employed in basic industries, those that bring 8 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t $ % 8.0% 6.0% 4.0% 2.0% 0.0% -2.0% Median Family Income Per Capita Income Median Family Income Growth Agriculture Mining 2011 Distribution of Employment by Industry Construction Manufacturing TCPU Wholesale Trade Retail Trade FIRE Services Government

10 in wealth from outside the area, has declined from nearly 9 percent in 2005 to 5percent in 2011, excluding retail and services, compared to roughly 11 percent for the state. However, unlike in some communities, a sizeable portion of the retail and services base serves tourists and winter visitors and can actually be considered a basic industry. The Town of Quartzsite is dominated by retail which accounts for 40 percent of local employment, followed by services, which accounts for 35 percent. Parker has only 17 percent of its employment base in retail, close to the state average, and 47 percent of its employment in services. Parker also has a large share of employment (17 percent) in government. Both lack basic employment outside of tourism. Industry Employment Total Industry Employment La Paz County 5,840 5,398 5,761 5,966 5,796 5,483 5,492 Total Establishments La Paz County Basic Industry Employment La Paz County Basic Industry Share 8.8% 8.1% 7.4% 6.8% 6.2% 6.5% 5.0% La Paz Index * Source: Dun & Bradstreet, * La Paz County compared to Arizona in 2005 = 100. **Basic sectors include agriculture, mining and manufacturing. Retail Sales After rising sharply in 2006, taxable sales have generally declined since The only exception is a spike in retail sales in 2010 after a new Wal- Mart opened July 1, Although this increase in retail sales was sustained in 2011, drops in restaurants and bars, contracting, and other taxable activities offset the gain in retail sales from Wal- Mart, resulting in declining sales overall. Taxable sales in 2011 fell to their lowest level since Overall, taxable sales and sales per capita have dropped by roughly 12 percent since their peak in Statewide sales have dropped 23 percent since The level of taxable sales per capita in $240,000,000 $230,000,000 $220,000,000 $210,000,000 $200,000,000 $190,000,000 Retail Sales Trends Taxable Sales (000) Retail Sales per Capita 2011 is roughly 73 percent of the statewide figure, up from 65 percent in The drop in per capita sales locally since 2007 has been less given that population has not grown. Taxable sales from establishments other than retail represent about 40 percent of $12,500 $11,000 $9,500 $8,000 9 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

11 2011 sales in the county, which generally provide some stability. Contracting sales represent nearly 9 percent of total taxable sales, down from 15 percent in Economic Indicators Total Tax Collections (000) La Paz County $209,765 $236,383 $237,331 $230,752 $215,917 $234,422 $209,693 Non-Retail Share 42.1% 45.4% 46.1% 46.4% 46.3% 46.0% 40.6% Growth Index ** Taxable Sales per Capita La Paz County $10,179 $11,500 $11,463 $11,199 $10,501 $11,441 $10,234 State of Arizona $15,710 $17,774 $18,372 $17,633 $15,076 $13,657 $13,938 La Paz Index * Source: Arizona Dept of Revenue. * La Paz County compared to Arizona in 2005 = 100. ** County growth rate compared to AZ growth rate. Construction Total permitting activity is down $30,000 significantly from the peak in 2006 $25,000 and dropped to its lowest level for the $20,000 entire period in It is important to $15,000 note that permit valuations include $10,000 additions and alterations, as well as $5,000 new structures. The total value of $0 permits issued has fluctuated from a Total Permit Value (000) high of $28.3 million in 2006 to a current low of $2.2 million, which is a decline of roughly 92 percent; this compares to a 77 percent drop in total permit valuation for the state during the same period. La Paz County Construction Activity New Housing Units The decline in the county s total valuation figure has been driven by losses in both residential and commercial permits which dropped by 95 percent and 86 percent, respectively from the peak in The number of new housing units in the county peaked in 2005 at 654, and then declined sharply to 37 in 2009 and 46 new units in Permitting activity in Quartzsite remained fairly strong through 2009, but dropped off significantly in Parker experienced a drop-off in both residential and commercial activity between 2008 and 2009, but then saw a jump in residential activity with 25 new housing units in P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

12 Construction Activity Total Permit Value (000) $28,207 $28,340 $23,462 $18,839 $5,708 $2,235 Residential $22,671 $20,616 $18,239 $13,146 $1,780 $1,114 Commercial $5,536 $7,724 $5,223 $5,693 $3,928 $1,121 La Paz Index * New Housing Units Source: Arizona State University,College of Business, Construction Activity Reports. * La Paz County compared to Arizona in 2005 = 100. Assessed Valuation Total assessed value in La Paz County has risen steadily, increasing by 66 percent from 2005 to 2010, although the majority of that growth occurred prior to Statewide assessed value increased 55 percent during the same period. Despite a decrease in 2010, residential properties in the county have seen substantial valuation increases since 2005, growing by more than 92 percent during the period. This compares to an increase of 54 percent for the state during the same period. Commercial and industrial assessed values Thousands $26,000 $24,000 $22,000 $20,000 $18,000 $16,000 $14,000 $12,000 $10,000 La Paz County Assessed Value Net Assessed Value (000) Res. Value per Capita also grew during this period but at a slower rate, increasing nearly 45 percent in the county and 54 percent statewide. Nonres. Value per Employee Residential values in the county currently represent about 44 percent of the total assessed value, up from 38 percent in Despite a small decrease in 2010, the average value of residential property has increased with per capita residential valuation increasing 94 percent since 2005, compared to only 43 percent statewide. Commercial/industrial assessed value per employee has also risen steadily since 2005 and is up 47 percent for both the state and the county. $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 11 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

13 Assessed value in both Parker and Quartzsite has grown more slowly than in the county overall, with overall growth rates ranging from 34 to 43 percent. Per capita residential values are also significantly lower than the county average. Assessed Value Total Net Value (000) $147,448 $172,148 $200,054 $235,122 $244,806 $245,133 Growth Rate -0.6% 16.8% 16.2% 17.5% 4.1% 0.1% La Paz Index * Residential Net Value (000) $55,428 $73,047 $83,043 $106,851 $112,755 $106,926 Per Capita Value $2,690 $3,554 $4,011 $5,186 $5,484 $5,219 La Paz Index * Comm/Ind Net Value (000) $29,105 $35,689 $36,754 $41,006 $40,227 $42,047 Per Employee Value $4,088 $4,929 $5,084 $5,845 $5,727 $6,006 La Paz Index * Source: Arizona Department of Revenue, Abstract of the Assessment Role, * La Paz County compared to Arizona in 2005 = 100. Municipal Revenues Total county general fund revenues increased modestly from 2006 to 2009, dropping significantly in 2010 but increasing again in In total, general fund revenues grew by 10 percent from 2006 through Total and Per Capita General Fund Revenues $12,000,000 $11,000,000 $10,000,000 $9,000,000 $8,000,000 $7,000,000 In terms of local tax collections in the general fund, $6,000,000 property taxes make up about 75 percent and sales $5,000,000 taxes make up most of the remainder. County tax $4,000,000 collections increased modestly throughout the sixyear period, despite declines in sales tax revenues. Total GF Revenues Sales taxes represent about 11 percent of general fund revenues in 2011, compared to about 14 percent in Given that population in the county has not grown, per capita general fund revenues have remained fairly steady, increasing about 11 percent over the past six years, despite significant declines in Per Capita Revenues $600 $500 $400 $300 $200 $100 $0 For the Town of Quartzsite, which is largely reliant on sales taxes, general fund revenues grew by only 2.5 percent since 2006, peaking in Per capita revenues increased significantly from 2006 to 2008, but are now back at 2006 levels. 12 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

14 La Paz County Municipal Revenues Local Tax Collections (000) $4,397 $4,593 $4,752 $4,866 $4,949 $5,257 Annual Change na 4.5% 3.5% 2.4% 1.7% 6.2% Growth Index* General Fund Revenues (000) $8,194 $9,244 $9,366 $10,726 $7,764 $9,040 Annual Change na 12.8% 1.3% 14.5% -27.6% 16.4% Growth Index* Per Capita GF Revenues $399 $446 $455 $522 $379 $441 Annual Change na 12.0% 1.8% 14.8% -27.4% 16.4% Growth Index* Source: La Paz County Annual Budget * La Paz County compared to Arizona in 2006 = 100. Summary Generally, the La Paz economic snapshot shows some challenges, although the current recession impacted every area of the country and most everyone. La Paz experienced basically no population growth and continues to have a large and growing population over 65 years of age. The region has had no substantial labor force growth, although unemployment, excluding the reservations, is now below state average. There has been some growth in per capita and household income (above state growth) but average incomes are still below state average. The regional economy is dominated by retail and services, has limited nontourism basic industry, and is vulnerable to economic cycles. Like other regions statewide, there has been a drop-off in construction activity with an uptick in Parker in La Paz experienced a drop-off in housing prices and residential assessed value (5 percent since 2009), but less extreme than in metropolitan areas in Arizona; Arizona s average drop was 20 percent (less extreme than the drop in housing prices). Residential assessed value in La Paz peaked in 2009, while the state peaked in Municipal operating revenues stabilized and per capita general fund revenues are now back to 2007 levels, down 15 percent from the peak in As the region focuses on initiating strategic action steps, this current economic snapshot provides a foundation to build upon. 13 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

15 STRATEGIC ACTION PLAN The La Paz Strategic Action Plan presents the steps that will be taken to address the current and future opportunities facing the region. It provides the strategic direction for La Paz to optimize competitiveness and achieve success. This section presents the following information: Economic Development Definition Regional Assets and Opportunities Strategic Direction The Strategic Action Plan is intended to be an action-oriented strategy to strengthen the regional economy. However, it is strategic in nature; focusing on actions that can be initiated or accomplished over the next five years. It is not intended to address every issue or tackle every problem facing the region. The objective is to identify those actions that are realistic and build upon the region s assets and opportunities. The Action Plan also recognizes the need for a strong public/private partnership between government, citizens, service organizations, and the business community. The plan respects the existing roles and responsibilities of the various organizations but encourages collaboration in achieving many of the strategic initiatives. Effective implementation will require cooperation and dedication over time to ensure a sustained effort. Economic Development Definition Economic development is defined differently community by community. The La Paz region s economic development definition follows. Economic development is the process that improves the area s quality of life while increasing prosperity in a balanced, sustainable manner. The regional economy is complex and there is an inherent interconnectedness of activities. For example, if residents are able to purchase goods and services locally or regionally those tax dollars remain within the region creating wealth. However, if a local business owner must purchase goods to run the business from outside the region, those tax dollars go somewhere else, creating wealth outside of the region. In order for the local and regional economy to grow and expand, there must be new dollars coming into the area and enough businesses in the community so that income earned can be spent (circulating the dollars within the local economy). These two types of activities are called basic and non-basic activities. Both are critical to have in the local or regional economy. Basic activities such as tourism bring new dollars into the region. The longer those dollars can circulate within the local economy through non-basic activities, such as local retail, the more wealth is created. The term economic leakage refers to a situation when capital or income exits the economy rather than remaining within and having a multiplying effect. For example, retail leakage refers to 14 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

16 activity where consumers spend money outside of the local market and therefore, are paying sales taxes elsewhere. The sales tax revenues collected by the governmental entity are used to fund services desired by residents. Leakage can also refer to healthcare or other types of business activities. The exit of money from the economy through leakage results in a gap between what is supplied and what is demanded. The goal is to keep as much of the revenues generated through business activity within the region as possible, creating jobs and wealth. Following is a graphic illustrating the concept of basic and non-basic activities within a regional economy. 15 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

17 Regional Assets and Opportunities La Paz has many assets that make the region ready for economic growth and development. Understanding these opportunities allows the region to position itself most effectively for economic development. Strategic Location Pro-Business Support La Paz is strategically located to service the Phoenix Metropolitan Area and the California marketplace by Interstate 10 or the Arizona & California Railroad. The region is also strategically positioned along the major northsouth commerce corridor connecting Mexico and Canada. A corridor study (initiating August 2012) is being jointly funded by the Nevada and Arizona Departments of Transportation. The study s purpose is to establish a business case for developing this new corridor. It has long been discussed to be located along Arizona State Route 95 through La Paz County. The services of the Arizona Western College Small Business Development Center (SBDC) have been available in the La Paz area for many years, but were provided from Yuma. The recent addition of a local SBDC Business Analyst has made these services available in a timely and convenient process to local small businesses. The La Paz Career Center is the One Stop Center for employers and job seekers to receive the employment and training services they need. They work closely with the employees to provide recruitment, screening, testing, and training services, and provide services to job seekers that include job listings, employability skills training, and assistance with resumes, letters, and applications. The Industrial Development Authority (IDA) was established in 1985 by La Paz County under the Industrial Development Financing Act. The IDA is an Arizona nonprofit corporation and political subdivision that can issue bonds for specific projects as described in state law. Such projects may include (but are not limited to): educational facilities, manufacturing facilities, office buildings, healthcare institutions, housing, and any facilities owned or operated by a 501(c) organization. The La Paz EDC was organized to assist existing businesses in expansion plans as well as target support to new business 16 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

18 developing in the region. Having a one-stop shop for business development assists in streamlining the start-up or expansion process and addresses business needs. Land/Buildings There is available and affordable land in the La Paz area for a multitude of development projects. La Paz land and building inventory is included on Arizona Prospector, which is an interactive Internet mapping program that provides enhanced economic development and site selection services to the business community. It allows users to search for available commercial buildings and sites as well as generate site-specific demographic and business analysis reports. This approach speeds up and simplifies the process of finding the optimal location for a business by providing public access to a range of valuable information. Industrially zoned properties are available in many locations in the La Paz area. The Arizona & California Railroad Company, Ltd. has parcels available for industrial development in the Town of Parker and Parker Annex. The railroad has 240 miles of track that provide for easy movement of goods to Los Angeles and Phoenix, and are adjacent to developable private land in many areas. The Colorado River Indian Tribes Industrial Park is fully improved with paved streets and all utilities, with rail, air, and highway access. Other privately owned industrial properties are available in the Parker, Bouse, Quartzsite, Vicksburg, Ehrenberg, and Salome areas. For long-term growth all of the General Plans in the area incorporate significant tracts for future industrial development, notably in the Parker Annex area, the Quartzsite Highway 95 corridor, the Vicksburg Road Employment Corridor, the Interstate 10/Avenue 75E interchange area, and in the vicinity of the La Paz Regional landfill. Quality of Life The La Paz region enjoys an extraordinary quality of life defined by access to outdoor recreational amenities and river activities. Quality education and opportunities that Arizona Western College offers make the region very desirable. 17 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

19 Strategic Direction This section outlines what the region hopes to achieve, how it will achieve it, and the indicators to measure success over time. It is intended to be an actionoriented plan that builds upon assets and opportunities. The ultimate objective is to diversify and strengthen the regional economy while enhancing La Paz s quality of life. This section outlines: La Paz Vision Strategic Initiatives La Paz Vision Values are those things that are most important to the community that they would not want to compromise for growth and development. When moving forward with implementing the strategic action plan these identified values should be considered. A Vision describes an ideal picture of a future state that can be achieved for La Paz. The vision is what the region is hoping to achieve through the implementation of the action plan. It is a description of the future that will be achieved or maintained as growth, business expansion, or revitalization occurs within the region. La Paz Values Integrity and character Community pride Caring and compassionate Volunteerism Teamwork Honesty and trust Area history Stewardship Cultural diversity and sensitivity Collectively, the Values and Vision are the standards against which the community and economic development effort will evaluate and measure impacts or changes. La Paz Vision Statement La Paz is the Western Gateway to Arizona, California, and Nevada and is home to thriving communities. Each community has preserved its individuality and maintains strong community values. These rural areas are surrounded by public lands offering recreational opportunities and expansive open space and vistas that residents and visitors value. La Paz is a flourishing county with healthy growth, attracting and retaining diverse businesses, tourism, agriculture, manufacturing, and mining that are attracting a motivated, highly skilled, and educated workforce. Apart from being an important water resource, the Colorado River plays a significant role as a quality of life amenity for residents and playground for visitors year-round. La Paz is home to residents of all ages who have access to exceptional educational opportunities, enjoy outstanding community services, and can take advantage of the full range of quality housing. 18 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

20 Strategic Initiatives Building upon the La Paz region s assets and opportunities, strategic initiatives were identified. Though the region has challenges as mentioned earlier in this plan, the focus of future action is to build upon the regional assets, which over time will also address challenges. Strategic initiatives are defined as areas where the region must focus or direct its attention over the next five years. The purpose is to address each initiative in an attempt to move La Paz toward economic diversification and an improved quality of life. Based on the analysis of the regional economy and economic opportunities, four priority strategic initiatives have been identified. Growing Our Regional Economy through Business Development Hospitality and Tourism as Economic Opportunities Healthcare Expansion Community Development Promoting Quality of Life and Livability These strategic initiatives are not presented in any priority order. They are intended to be addressed collectively over the next five years. Within each of the four Strategic Initiatives, the following format is presented. Description presents an overview of the strategic initiative. Goal desired end or condition, which if pursued over time will ultimately result in the attainment of the regional vision. Strategy specific activities that will need to be accomplished to achieve the goal it refers to. Community Indicator quantitative measures of activities that are important to the community. These indicators are used to track a community s well-being and the community s progress toward established goals. They reveal whether the key community attributes are going up or down; forward or backward; or getting better, worse, or staying the same. 19 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

21 Strategic Initiative: Growing Our Regional Economy through Business Development Description: La Paz has the opportunity to diversify and strengthen the regional economy by attracting new and expanding existing business. The region has quality locations. The airport owned by the Colorado River Indian Tribes is a tremendous asset that could be attractive for industrial development. Land and building is available within the region that is ready for new business development. The Town of Parker annexed land at the intersection of State Highways 95 and 72 called Parker Annex that is available for commercial, industrial, and manufacturing. It also has availability for recreational and residential development. Continuing to cultivate an entrepreneurial spirit within the region will complement the growing small business sector. Ensuring training and development across workforce needs and promoting the affordable living in the region will position La Paz as an economic development hub. Working with existing businesses, building on assets to create new enterprises, and attracting new light industrial development to the region is what this initiative is about. La Paz County was recently selected as the location for two major solar projects: the 100mW Quartzsite Solar Energy Project, which is a 653-foot-high solar power tower using concentrated solar energy from a field of mirrors; and the 200mW EnviroMission project. This solar project plans to use a three-mile diameter greenhouse to produce hot air, which will then flow naturally into and up a 2,600-foot solar thermal updraft tower turning 32 turbines at the base. This innovative project will ultimately become the secondtallest structure in the world. Infrastructure is a key element to business development. While expansion of private utility infrastructure is normally beyond the scope of government planning efforts, it is important that they key elements of each General Plan be communicated to the private utilities for inclusion in their planning. Transportation, water, and wastewater issues are multijurisdictional issues involving the county, towns, private developers, and providers as well as state and federal agencies. Communication, planning, and plan execution are vital to ensuring services are available in developing areas. Increasing the telecommunication infrastructure and broadband connectivity is critical for La Paz to take advantage of developing businesses that rely on the ability to transfer data quickly and economically. The Arizona Strategic Enterprise Technology (ASET), formally known as GITA, was awarded $6.7 million from the National Information and Technology Administration (NTIA), of which $2.3 million is reserved for rural planning (Arizona Rural Broadband). The four rural councils of governments have the ability to apply for grant funds to perform a gap analysis to determine the full cost of broadband 20 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

22 implementation to meet the region s needs. It is critical that La Paz telecommunication needs are included in this effort. Additionally, SB1402 was passed by the Arizona Legislature in This legislation is described as the two highways for nearly the price of one because it allows the Arizona Department of Transportation to lay fiber along state highways to increase the availability of broadband. This reduces the cost for infrastructure. As the north-south corridor between Mexico and Canada along State Route 95 is discussed, ensuring broadband is included will be critical to La Paz. La Paz has a rich agricultural and farming history. Quality soils and exposure to yearround sunshine makes La Paz attractive to agricultural growth. Cotton, alfalfa, and melons as well as other crops are produced in several areas of the county. Additionally, in recent years La Paz has been a destination for dairy farming expansion. Continuing to develop local agriculture generates a positive return to La Paz at many levels, including financial, economic, community, and health. La Paz has the opportunity for value-added agriculture by taking a farm-to-fork approach related to regional agriculture. Thinking comprehensively about existing and potential agriculture, La Paz could develop a Value-Added Agriculture Cluster comprising all entities, including farms, transportation, food processors, packaging and equipment manufacturers, waste-to-energy providers, distributors, and retail outlets. The region has the geographic factors and agribusiness history that provide the foundation for cluster development. The available labor force in the La Paz area is often discussed, both in terms of quantity and quality. With a significant portion of the economy based on retail and tourism, many jobs are part-time or seasonal with limited or no benefits. While this enables some retirees to remain in the workforce, it also promotes a lower average income when compared to full-time jobs in other sectors such as manufacturing. For some area residents the choice to live in the La Paz area is a lifestyle choice rather than a quality of employment choice. For some visitors to the area the quality of employment desired is a barrier to relocating to the area on a permanent basis. For these reasons the currently available employment is not a good indicator of the skills and quantity of potentially available workers. Therefore, additional data on the available workforce would be a useful tool for employers looking at the area. Potential industry sectors that offer promise for La Paz include: General Business and Manufacturing Renewable Energy Waste and Recycling Value-Added Agriculture 21 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

23 Goal: Attract new businesses and retain existing businesses. Strategies: General Business and Manufacturing 1. Implement a targeted recruitment campaign aimed at leveraging the visitor knowledge to attract small manufacturing companies that have 20 or fewer employees. 2. Establish an incubator to facilitate start-up businesses. 3. Develop a fly-in facility plan for Colorado River Indian Tribes Industrial Park. 4. Develop and implement an existing retention and expansion business survey and conduct follow-up interviews. 5. Strengthen relationships with strategic partners such as APS and the Small Business Development Center to assist in business development efforts. 6. Improve communications about La Paz County economic opportunities and expand social media presence. 7. La Paz EDC, La Paz County, and the Towns of Parker and Quartzsite work with the Western Arizona Council of Governments to include the La Paz area in the Arizona Rural Broadband planning effort. Waste and Recycling 1. Develop and implement a strategic plan for development of the La Paz Regional Landfill to provide revenue to La Paz County while minimizing adverse impact on the surrounding area. Renewable Energy 1. Promote the region s solar development potential. 2. Explore the potential for bio-fuel plant development. Value-Added Agriculture 1. Develop and support the growth of agriculture in La Paz County. 2. Develop agro-tourism development with farms, dairies, and production farms. 3. Install signs identifying the crops along the roads. 4. Attract businesses that can process dairy products (e.g. raw milk into cheese). 5. Increase the education regarding value-added agriculture potential for rotation crops. Labor Force 1. Develop a regional labor force study and implement strategies to improve the labor force. 22 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

24 Employment Percent Growth La Paz Focused Future II Community Indicators: 7,300 7,200 7,100 7,000 6,900 6,800 6,700 6,600 6,500 6,400 6,300 La Paz County Employment Employment Annual Growth % 4% 3% 2% 1% 0% -1% -2% -3% -4% -5% The last five years have seen declining employment in La Paz County. During these years, the number of employed people has dropped from 7,215 to 6,630, with the greatest decreases occurring during 2008 and La Paz County Employment Employment 7,215 6,966 6,943 6,844 6,630 Annual Growth -0.3% -3.5% -0.3% -1.4% -3.1% Source: Arizona Department of Administration, Local Area Unemployment Statistics 23 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

25 Employment Per Capita Percent Change La Paz Focused Future II La Paz County Employment per Capita Employment Per Capita Percent Change 5% 4% 3% % % % % % % % % Along with the decline in La Paz County jobs has come a decline in per capita employment. Since 2007, employment per capita has decreased from approximately 0.35 to 0.32 jobs for every person in La Paz County. The largest change year-over-year in this indicator occurred in 2008, when it decreased by 3 percent, and in 2011, when it decreased 4.2 percent. La Paz County Employment per Capita Employment 7,215 6,966 6,943 6,844 6,630 Employment Per Capita Percent Change -1.1% -3.0% -0.1% -1.1% -4.2% Source: Arizona Department of Administration, Local Area Unemployment Statistics; Office of Employment & Population Statistics 24 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

26 Strategic Initiative: Hospitality and Tourism as an Economic Opportunity Description: La Paz County should position itself to maximize the potential of people coming to enjoy the Colorado River and the region s natural environment. People who visit the region often make it their home, bringing their business to the area. To accomplish this initiative, La Paz should maximize and expand recreational opportunities associated with the river and natural environment. The EDC should consider business recruitment strategies associated with tourism events (e.g. hosting receptions, tours, or targeted marketing efforts). La Paz County experiences a tremendous influx of seasonal visitors and offers visitors and residents a full range of recreational activities in the desert and on the Colorado River. The Town of Quartzsite is known for its winter season gem, mineral, and art shows. More than a million folks visit this community each year to take part in these shows. La Paz County offers a quiet, pollution-free haven to winter visitors escaping the snow and ice of the northern and midwestern states. Bordered on the north by Lake Havasu and the Bill Williams River and on the west by the Colorado River, recreational opportunities include boating, fishing, water skiing and sometimes just floating down the river on an inner tube. The 17-mile Parker Strip offers some of the best water skiing, boating, jet skiing, wave-running, and swimming, as well as fishing, in the West. The variety of riparian habitats and desert environments has come to the attention of birders with as many as 100 species being observed during a day trip. The Blue Water Resort and Casino on the river and Emerald Canyon Golf Course add to the area s destination amenities of unparalleled diversity. La Paz offers access to public lands and a multitude of mineral resources that attract offroad enthusiasts and winter visitors. The entire region has become a year-round destination for off-road recreational activities. Additionally, the Town of Parker is home base for major off-road races such as the Best in the Desert Parker 425 for the past 40 years, featuring everything from trophy trucks to quads and motorcycles. Targets: Hospitality Destination Tourism and Recreation Goal: Capture and expand the revenues that can be generated by visitors to the region. Strategies: 1. Secure a sustainable funding mechanism for tourism destination marketing. 2. Develop a broader spectrum of destination tourism, new signature events, and recreational activities that attract visitors year-round. 3. Define La Paz s destination tourism and recreation niche. 25 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

27 Tax Collections Percent Change La Paz Focused Future II 4. Promote Alamo Lake as a recreational amenity for fishing and amazing stargazing. 5. Work to protect public lands and minimize the impact from recreational activities through increased public awareness. 6. Link all chambers of commerce and CRIT more effectively for joint promotion, networking, and regional tourism marketing. 7. Develop a hospitality and tourism program at Arizona Western College. Community Indicators: La Paz County Sales Tax Collections by Fiscal Year $2,500,000 10% 8% $2,000,000 $1,500,000 Retail Restauranst/Bars 6% 4% 2% $1,000,000 0% -2% $500,000-4% -6% $ % Sales tax collections, specifically restaurant/bar and retail transaction privilege tax, and their annual growth rate. A total of approximately $2.1 million was collected in La Paz County during the 2011 fiscal year. Between the 2007 and 2009 fiscal years, a total decline of over 8 percent was experienced, followed by a 9.2 percent increase in 2010, and a 5.9 percent decrease in In December 2011, a 0.5 percent La Paz County tax increase was enacted, and will be reflected in the fiscal year data when it becomes available. 26 P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t

28 La Paz County Sales Tax Collections Restaurants/Bars $403,477 $407,815 $395,123 $433,183 $324,351 Retail $1,919,934 $1,854,030 $1,738,833 $1,897,946 $1,869,128 Total Tax Collections $2,323,410 $2,261,846 $2,133,956 $2,331,128 $2,193,479 Total Percent Change 0.0% -2.6% -5.7% 9.2% -5.9% Per Capita Sales Tax Collections $92.73 $89.98 $84.57 $92.61 $90.17 Source: Arizona Department of Revenue Fiscal Year Annual Reports , Office of Employment & Population Statistics Note: Fiscal years begin in July and end in June; La Paz County tax increase of 0.5% occurred in December P a g e S t r a t e g i c P l a n f o r E c o n o m i c D e v e l o p m e n t