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Winning!By STEVE BURKS

Economic development victories add up to big gains for Arizona

Winning is a team effort, and Team Arizona has had a very productive 2018 when it comes to luring new companies to locate here or to expand their current operations.

Arizona’s team is led by a growing workforce, as the state climbed past the 7 million mark for population, Of those people, more than half are located in Maricopa and Pinal counties and companies have been drawn to those two counties. Other role players for Arizona is the solid, modern infrastructure that is in place, as well as a climate of collaboration among officials on the local, county and state level.

“What companies are citing as reasons to move to Arizona are the labor makeup and workforce availability, as well as infrastructure readiness and speed to market,” said Mitchel Allen, director of business development for the Greater Phoenix Economic Council. “Obviously being in a pro-business region or state certainly helps. We’re certainly winning a lot of deals because of that.”

Allen is just one of the economic development leaders that have been working diligently to win those deals. Each of these wins are victories that the people of Arizona share in terms of quality jobs and economic growth that raises an already high quality of life in the state.

NIKOLA MOTORSWhile the Phoenix market garners

the most attention for economic development, something special is

brewing just south of the Valley in Pinal County.

Pinal County grabbed plenty of attention in 2016 when startup electric car manufacturer Lucid Motors announced it planned to build a factory at the Central Arizona Commerce Park in Casa Grande.

That project was an enormous victory for Arizona and Pinal County, and in 2018, the county came through once again with what could be called a save, to use baseball terminology. Nikola Motors, another startup hybrid vehicle manufacturer, had originally planned to build a factory in Buckeye to manufacture its groundbreaking hydrogen-powered semi trucks. However, the company received a large order from the Anheuser-Busch company for up to 800 semis and that order changed the timeline.

“They told us at the time that the big contract that they got for 800 semi trucks, that they were going to have to expedite the timeline,” said Tim Kanavel, economic development manager for Pinal County. “The site that they were looking at in Buckeye wasn’t going to be ready in time.”

In stepped Pinal County, the City of Coolidge and Jackob Andersen of Saint Holdings, the owner and developer of both the Central Arizona Commerce Park and the Inland Port Arizona in Coolidge, the site where Nikola will

I.D.E.A. TEMPE: a phased project of five, 5 to 8-story buildings totaling approximately 1 million square feet, along with two parking structures with about 2,500 spaces.

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build a 1 million square foot assembly plant. The Inland Port Arizona was ready to go with everything that Nikola Motors was looking for: Plenty of available land with access to freeways with Interstate 8 and Interstate 10, a rail line and a location situated within a 50-mile radius of 2.8 million people to provide ample workforce access.

“Everything follows infrastructure and the backbone for a lot of these companies is either rail or your interstate access for their transport,” said Rick Miller, city manager for Coolidge. “That was one of the real good things about this location with the I-8 and I-10, it’s not very far at all from where Nikola is looking.

“Arizona is a fantastic state to do this kind of business. The climate’s right.”

Saint Holdings is one of the largest owners of private land in Pinal County and has positioned itself as a leading economic driver for the county. Lucid Motors expects to employ 2,000 people at its plant, and Nikola Motors plans to have slightly less than 2,000 employees. Between the two projects, that’s nearly a $1 billion economic impact for the county.

Andersen envisions that when work begins on the Lucid and Nikola plants in early 2019, there will be a burst of activity as companies that support this new automotive technology move in.

“One of the requests of both

companies when they came to us, one of the reasons we were so high on the hit list, was do we have available land adjacent or in close proximity so that they are not on an island and not able to accommodate any supply chain support or auxiliary users that would be there to serve their needs,” said Andersen, who has been active in land acquisitions in Pinal County since 2006. “I think you’ll see a quick move for the region to become quite a hub for automotive manufacturing in the Southwest.

“These cars and trucks, from our understanding, they’re not just cars and trucks, they are collecting data all of the time, they are loaded with sensors and cameras. So, we’ll see a lot of businesses coming into the area that you wouldn’t think are automotive, but they really are related to that industry.”

Nikola has already begun hiring staff for its research & development facility that is located at 4141 E. Broadway Road in Phoenix. That facility will be the company’s Arizona headquarters until the manufacturing facility is completed.

AIROBOTICSIsraeli automated industrial drone

manufacturer Airobotics opened its new regional headquarters in Scottsdale. The company started with 15 employees locally, but plans to have 80 on its Arizona team by the

end of 2019. The company was ranked by the Wall Street Journal as one of the top tech companies to watch in 2018 and plans to move its global operations to the Scottsdale location in the Scottsdale Airpark area at 8340 E. Raintree Drive.

“Gov. Ducey recently implemented that AZ Sky Tech program which is for the advancement of unmanned, autonomous type of systems, or drones,” said Mark Paratore, Scottsdale economic development program manager. “They can test and deploy here in the state, so I think that the alignment that Scottsdale has with the forward-thinking innovation along with the state, the operating environment or the business-friendly climate, Scottsdale became a location of choice for them.”

Airobotics develops fully automated unmanned aerial vehicles (or UAV’s) to be used in industrial settings. One of its first customers in the U.S. was mining company BHP Billiton Plc.

The move to Scottsdale was the company’s first venture in the United States, which created challenges for Airobotics and the City of Scottsdale as they worked together toward opening.

“We had to ensure that they know

NIKOLA MOTORS: Groundbreaking hydrogen-powered semi trucks.

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what types of licensing or permits that are going to be required in order to set up their operation,” said Paratore. “So we really relied upon our key stakeholders or key influencers within the community that we know that can really help them in that process. So, anyone from the Commerce Authority to the GPEC and anyone in between, we made sure that we were checking all of the boxes so that we don’t land on the 23rd hour and realize that we didn’t take care of all of these things.”

ANDERSEN CORPORATIONThe West Valley was a hot spot

of economic development in 2018, with a significant victory coming in September when Andersen Corporation, one of the largest window and door manufacturers in North America, announced plans to invest more than $105 million and build a new regional manufacturing and distribution facility to serve the western United States.

Work on the facility, located at Cotton Lane and Commerce Drive in Goodyear, will begin in early 2019 and will take a year to complete. In 2020, the company expects to hire 415 full-time employees.

“Andersen Corporation’s expansion to Greater Phoenix showcases the region’s ability to meet the demands of

a major manufacturing and distribution operation,” said Chris Camacho, president and CEO of the Greater Phoenix Economic Council during the initial announcement for the project. “The site in Goodyear allows them to scale by tapping into local resources and a dynamic talent pool that is ready and willing to support their current and future growth.”

The company already has initial plans in place to make a total investment of at least $200 million through additional future expansion of the campus, which will be owned and operated by Andersen Regional Manufacturing, Inc, a subsidiary of Andersen Corporation.

CONSUMER CELLULARConsumer Cellular expanded its

Arizona footprint when it moved into a new, 164,000 square foot facility at 7500 N. Black Canyon Highway, Phoenix. The company has assumed the entire space, developed by Everest Holdings, which has been completely renovated to include a “floating” second level. The building contains 24 private offices, 8 conference rooms and 5 training rooms.

The mobile service provider, which boasts nearly three million customers, currently employs 1,025 staff in two Phoenix-area locations. The new

facility, a former Sam’s Club, will allow for the addition of 1,600 employees over the next three years. The company hired 500 additional employees this year alone.

AXISCADESIn 2017, Tucson enjoyed a major

victory with Caterpillar picking downtown Tucson as its new location for surface mining and technology offices. As is often the case, that move created a domino effect and the first one to fall into place was Axiscades, a global provider of innovated engineering solutions for the mining, construction, aerospace, defense and other key industries.

Axiscades, which is based in Bangalore, India, is moving into new offices in downtown Tucson, drawn there by Caterpillar.

“We chose Tucson to be closer to Caterpillar, one of our key customers, as well as other clients in the mining industry,” said Mritunjay Singh, CEO of Axiscades, in a press release announcing the move. “The entire region is strong, not only in mining, but also other key Axiscades strategic growth areas.”

CONSUMER CELLULAR: The new call center is expected to create an estimated 850 new jobs.

SUPPORTING ECONOMIC GROWTHFostering job creation helps drive a healthy economy. That’s why SRP joins forces with

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Axiscades plans on hiring 320 new employees for its Tucson operation, mostly high-level positions like mechanical and electrical engineers and research and development.

TUSIMPLELike Lucid Motors and Nikola

Motors, TuSimple is attempting to be a major disrupter in the automotive industry. TuSimple is a global developer of self-driving trucks and expanded its presence in Arizona this year.

TuSimple had been operating out of a 6,800 square foot testing facility in Tucson, but recently expanded to 50,000 square feet with plans for even more growth in 2019. All told, the company has designs on creating 500 new jobs in Arizona as it refines its autonomous trucks that have been testing in Arizona.

The expansion plans are expected to have a total economic impact of $1.1 billion over the next five years.

BECTON DICKINSONBecton, Dickinson and Company

(BD), a global medical technology

company, acquired C.R. Bard, Inc., in 2017. Bard, a medical technology company in the fields of vascular, urology, oncology and surgical specialty products, had an office in Tempe, but moving was a strong possibility under new ownership.

Tempe, however, proved to be a worthy location for BD, and the company recently broke ground on a new headquarters in the IDEA Tempe development, at 700 W. Rio Salado Parkway.

“There was a chance that they would move, but fortunately, they decided to stay in Tempe,” said Maria Laughner, economic development program manager for Tempe. “It was a lengthy process to retain them. They were looking at several other locations around the country and we met with their leadership several times. At the end, they decided to stay in Tempe because of the success of the current BD team in tempe, the relationship they have with the city and the great opportunity to be the anchor tenant at our new IDEA campus.”

BD currently has 500 employees in Tempe and that number will grow when they move to a new facility in 2020.

The IDEA Tempe development is located next to the Tempe Center for the Arts and stands for Innovation, Discovery, Education and Arts. At full build-out, the development will have five commercial buildings totaling 1

million square feet as well as 40,000 square feet of arts rehearsal and classroom space.

MORE WINSIn January, it was announced that

the Phoenix-Mesa Gateway Airport would be home to the nation’s first international air cargo hub to house both Mexican and United States customs officials. SkyBridge Arizona is a first-of-its kind project that will speed up the process for goods traveling to and from Mexico and South America. At full buildout, the 360-acre project will create an estimated 17,000 direct and indirect jobs and more than 5 million square feet of commercial space.

In June, financial firm Deloitte announced a lease of 102,000 square feet in Gilbert, where it plans to eventually hire 2,500 employees as part of its expansion.

In September, India-based tech company Infosys announced plans to open a technology and innovation hub and create 1,000 jobs in Phoenix over the next five years. Infosys is still in the process of selecting a location for the new office.

In October, Wag!, the on-demand dog walking company, announced plans to open a customer care center in Phoenix that will bring 100 jobs by the end of the year.

And the year isn't over yet.

BECTON DICKINSON: The Peripheral Intervention business of BD (Becton, Dickinson and Company) will be the first tenant in the IDEA Tempe development.

The Ak-Chin Industrial Park Board oversees the marketing, development and management of Ak-Chin’s

industrial properties which include the Santa Cruz Commerce Center, Adobe Office Suites and the property surrounding the Ak-Chin Regional Airport. The Board acts as a location advocate both within and outside the Community to identify opportunities, streamline processes, and accelerate solutions to any issues that might arise.

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4. Board advises applicant of approval process andfacilitates progression

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6. Board representative prepares a Preliminary Site PlanApplication (PSPA) and submits to Planning

7. Planning holds Technical Assistance Committee (TAC)meeting for Board representative and applicant topresent project and respond to questions

8. PSPA comments submitted to Planning; Planningforwards to Board representative

9. Planning submits Application to Ak-Chin Planning &Zoning Commission (P&Z)

10. P&Z meets to review and vote on PSPA

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12. If approved, it is forwarded to Ak-Chin Council whoauthorizes project to proceed or does not approve it toproceed as proposed

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From its agricultural heritage, the Ak-Chin Indian Community became uniquely adaptable to changing climates and conditions. This resilience laid the groundwork for a 21st century business philosophy and entrepreneurial spirit that capitalizes on changing markets and commerce opportunities that encourage economic diversification and self-sufficiency.

Brokers WelcomePinal County, Greater Phoenix, Arizona

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W hen duty calls, Richard Wilkie has been there to answer. Just this summer, Wilkie, an officer in the U.S. Navy Reserve, was summoned by his country to be deployed to Afghanistan for the second time in his career. Before he left, Wilkie, the 2018-19 AAED Arizona chapter president, was able to share his thoughts on economic development in Arizona.

WHAT ARE ECONOMIC DEVELOPERS SAYING ABOUTTHE AZ ECONOMY?

There is still a lot of interest in Arizona, and the potential economic impact of companies that are currently taking a hard look at our state represent tens of thousands of high paying jobs and billions of dollars in capital investment, so the outlook continues to be very good. Economists in our association continue to be bullish on our state.

HOW CAN THE COMMERCIAL REAL ESTATE (CRE) COMMUNITY COLLABORATE WITH ECONOMIC DEVELOPERS?

Collaboration between the commercial real estate industry and economic developers is vital to our

ability to be able to quickly identify properties that can meet prospects’ requirements/needs, and better promote all the opportunities that Arizona has to offer to national and international businesses.

One way that Commercial Real Estate professionals can collaborate with economic developers is to work directly with the economic developer that represents the communities their properties are in to build out a very detailed property information document/description. Commercial properties usually have a basic informational brochure, but I recommend going beyond the basics to include the following:

• Personal Property Tax information • Proximity to any utilities that might not currently be available. Helpful would be time and cost for extending it. • Proximity to and type of public transit• Proximity to restaurants if not immediately available• Shop Local program details/ information• Labor force analysis for commercial workforce positions• Training opportunities provided by the local community college• Recruitment and employer services provided by the AZ@Work office that supports the area• Keep information on available commercial sites up-to-date with any change in availability, terms, etc.

WHAT’S AN IMPORTANT ECONOMIC DEVELOPMENT DIALOGUE THAT YOU WANT TOSEE HAPPEN IN 2019?

Over the past few years we have seen an increased dialogue between workforce organizations/entities and economic developers. This dialogue needs to not only continue but needs to be expanded to more aggressively engage other community partners such as our primary and secondary educational systems and our vocation training schools/entities. Being able to provide the high skilled/well educated workforce is obviously one of the top requirements for employers, but we are also facing a shortage of labor that is necessary to build all of the infrastructure and the actual facilities/structures for the companies, and the additional homes, schools, and other buildings that will be necessary for the additional commercial and professional services that will be needed to support new industries.

Richard Wilkie, CEcD, AZED Pro, is AAED’s 2018-19 President. He was recently activated with the Naval reserves and was deployed to Afghanistan. He will continue to stay active in his role as president through video/telephonic capabilities.

with AAED president Richard Wilkie

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Lori CollinsWendy Bridges

“WHAT IS CHANGING IN ECONOMIC DEVELOPMENT IN ARIZONA AND WHAT ARE ECONOMIC DEVELOPERS DOING DIFFERENTLY?”

In Prescott, we have expanded our area of focus for economic development efforts. At one time, retail was the primary focus of economic development efforts. However, we have learned that a diverse mix of

employers makes a community healthy and vibrant. Our primary focus is now on job creation, particularly in high tech industries. As retailers are scaling down physical locations and high tech opportunities are ramping up, that shift in focus has laid the foundation for Prescott’s future.— Wendy Bridges, AZED ProEconomic Development Coordinator and Film Commissioner, City of Prescott

Policymakers and economic developers are working on not just the volume of jobs that are created, but also on quality. This will lift the economy and make it more stable. But, now we need the right tools including proper education investment and by focusing on ROI.— Jim RoundsPresident, Rounds Consulting Group, Inc., Tempe

Education and Economic Development are inextricably linked. Now more than ever, this important relationship is taking center stage. Not only is talent a key location decision factor for companies, but many forecasts suggest that seven out of 10 jobs will require some type of higher education. We continue to meet regularly with businesses in our communities and have industry-led discussions about their needs for their future workforce. We can better ensure resilient growth if we develop talent to practice at the forefront of a wide variety of dynamic industries.— Lori CollinsDeputy Economic Development Director, City of Phoenix

Talent, talent, talent! In the “old days” of economic development (5 years ago), companies would make relocation or expansion decisions based on a decision maker’s desire on where to live, cost of commercial real estate, tax rates, and K-12 education, just to name a few. While access to talent was certainly evaluated, in this new era of explosive growth in technology, it can be argued almost all companies are racing to grow their technology components. This shift has created a tremendous demand for tech talent. No longer is it “if you will build it, they will come”. In order for Arizona to remain competitive, we must seek to be the state of choice for top talent.— Rob Millar, CEcDActing Director, Economic Developmentfor City of Scottsdale

Arizona’s economic development community is working more cohesively than ever before to champion our cutting edge, high tech assets. Arizona is now emerging as a global innovation hub as well as a top place for Internet of Things technologies and FinTech industries. The economic development conversations that the City of Surprise has today with corporations are more about our high quality workforce, infrastructure, and ingenuity — rather than a primary focus on our low-cost proposition.— Jeanine JerkovicCity of Surprise Economic Development Director

Economic development leaders share their insight on how to keep the state moving in a positive direction

Jeanine Jerkovic Rob Millar Jim Rounds

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