Metro Denver Economic Development Corporate - Collaborate to Compete
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Transcript of Metro Denver Economic Development Corporate - Collaborate to Compete
Metro Denver Economic Development Corporation
Regional Economic Development and How We Do It
Metro Denver population
3.5 million residents
Who?• Privately funded – no elected officials permitted
to sit on Executive Board• 268 investors - $10,000 - $25,000• $3.0 million budget• 70+ partners throughout region• Four cluster advocacy groups: Space Coalition,
Aviation Coalition, Energy Coalition and Financial Services Investment Advisory Coalition
What We Do
• National and international marketing for 70+ economic development partners, cities and counties.
• Operate a 65+ gigabyte website on behalf of all partners. No fees for service metrodenver.org
• Handle all regional prospects in partnership with State Office of Economic Development
• “First money in” on major economic opportunities/ threats to region’s economy
Regionalism…How it began
• Oil Shale Crisis of 1983• A “boom and bust” economy• Proliferation of economic development groups• Chasing away companies• Stealing companies from one city to another• “I located my mall on the border of Denver, so
I could steal all of Denver’s sales tax.” -Dennis Champine, former Mayor of Aurora, Colorado
The Crazy 8’s Simple Goal: More Deals Little Did They Know…
• “Could we sell the region in the same way our customers see us? “A place”, not Aurora, Westminster or Greenwood Village.”
• “Could we act jointly to “win” the competition against other metro regions, and then compete with ourselves after we beat out Dallas or Phoenix?”
• “Could we hold each other in trust, have full transparency with our prospects, maintain confidentiality among one another, and behave at the highest levels of ethics?”
Regional Economic Impulse Sets Off…
• Metro Mayors Caucus• Metropolitan Stadium District• Regional efforts for transit• Regional Air Quality Commission• World Trade Center• Scientific and Cultural Facilities District
Governance
• Principles of Agreement• Code of Ethics• Sanctions and Appeals
The Rules• Sell “Metro Denver – First” and our communities
“Second”• Honor confidentiality of prospects, with
transactions driven by the client. Violating this portion of the Code is “viewed as the single most serious breach…”
• No solicitation of fellow members’ prospects, or their companies. The “going around deals” prohibition. Once “cut” is made other communities must “stand down”.
• Work with commercial real estate community
Confidentiality
• All members entitled to information on “regional” and “state” prospects.
• Individual community confidentiality – client may ask to work with only one community. Information remains confidential with community only.
• Legally binding “NDAs” also apply
More• Share as much information as possible. Requires
that each of us hold that information in confidence. “More information is better than less.”
• No “advertising or selling against” another community.
• If we can’t locate them in our community, we pledge to share the opportunity with other members – same goes for retention. Regional account executives really do exist.
• Inter-regional moves – “Call the other community.”
Elements of the Code of Ethics
• Creating a “culture of cooperation”, with “customs” not “regulations”.
• “Laws are sand. Customs are rock. Laws can be evaded and punishment escaped, but an openly transgressed custom brings sure punishment.” - Mark Twain
• We have “sanctions”.• If we are governed by “custom” the line that
defines a violation of the Code is blurry.
Leadership on Prospects
• “Sometimes you do the solo. Sometimes you “sing in the chorus.”
• Lead role is dictated by the prospect or the organization that has developed the prospect.
• Leadership by “acclamation” not “proclamation”
How the Metro Denver EDC Handles Clients
Metro Denver EDC
North Colorado EDC
Adams County EDC
Upstate Colorado
Aurora EDCDenver South EDPCity of DenverSouth Metro EDGDowntown Denver
PartnershipJefferson Economic CouncilBroomfield EDC
Boulder Economic Council
Role of the Central Staff
• National marketing– Advertising and public relations
• Regional prospect visit coordination• Site Selection Conferences/Events• Central data base• Regional web site• Special projects and elections
Role of Partners
• Individual prospect development• Business retention• Participation in prospect handling• Preparation of proposals for regional
prospect• Local government interactions• Permitting and relocation assistance to
clients• Governance and development of national
marketing plan for Metro Denver EDC
Cost to Participate
• No cost to partners • Some exceptions such as fees for
trips/conferences where we market the region
• Some partners elect to provide funding but no funds are ever solicited from partners.
What Partners Get from Central Staff
Uniform data and systems for all info needed to make site selection decisions – including GIS
More dealsNational/international exposurePolitical helpLeadership in campaigns that are
anti-economic developmentTreated like a “beloved family
member”
Average client decision making cycle
Economic Strategy
• Full implementation of Porter’s “cluster” strategy• Build world class infrastructure during economic
downturns: DIA, convention centers, stadiums, transit, Anschutz Life Science Campus
• Parallel “place making” strategy • Create and nurture tax/regulatory, social and
physical infrastructure for cluster companies• Create global access, via non-stop air service to
Europe, Asia and Central/South America
Cluster-driven Job Growth Strategy
• Focus on “innovation clusters” and the support structure to make them prosper. Clusters create their own gravitational pull.
• Became a “data driven” policy group – letting the data drive choices and strategy
• Measure, measure, measure• From 30% to 52% in “closure rate”• From 4th to 2nd in aerospace• Becoming a ‘bio’ state
Outcomes• Regional collaboration and cluster focus
triggers major regional infrastructure projects: – convention center, – indoor NBA, NHL arena– baseball and football stadiums, – $8. billion,119 mile transit system, – $5.0 billion Life Sciences campus– Non-stop flights to Europe, Asia, Central
America
• 4th fastest growing state, innovation hub• 3rd most diverse economy of 50 states• Center of migrating 25-34 yr olds
Nine Counties’ Industry Clusters2005 -2010
Aerospace
Aviation
Medical Devices
Pharma
Telecom
Cleantech
Fossil Fuels
Banking/Finance
Insurance
InvestmentIT/Software
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
-25.0% -20.0% -15.0% -10.0% -5.0% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0%
Nin
e-C
ount
y L
ocat
ion
Quo
tient
Rel
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U.S
. (A
vg.=
1.0)
Total Employment Growth (2005-2010)
Metro Denver Innovation Clusters 2006-2011
Aerospace
Aviation
Medical Devices
Telecom
Cleantech
Banking/Finance
Insurance
Pharma
IT/Software
Investments
Healthcare & Wellness
Fossil Fuels
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
-5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%
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. (A
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Avg. Annual Employment Growth (2007-2012)
Metro Denver Industry Clusters2007 - 2012
Metro Denver Industry Clusters2008-2013
Aerospace
Aviation
Medical Devices
Telecom
Cleantech
Banking/Finance
Insurance
Pharma
IT/Software
Investments
Healthcare & Wellness
Fossil Fuels
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
-3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0%
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ocat
ion
Qu
otie
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Rel
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e to
U.S
. (A
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1.0)
Avg. Annual Employment Growth (2008-2013)
Aerospace
Aviation
Medical Devices
Telecom
Cleantech Banking/Finance
Insurance
Pharma
IT/Software
Investments
Healthcare & Wellness
Fossil Fuels
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
-0.5% 0.5% 1.5% 2.5% 3.5% 4.5% 5.5% 6.5%
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Rel
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U.S
. (A
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One-Year Direct Employment Growth (2012-2013)
Metro Denver Industry Clusters