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

ativ

e to

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%

Nin

e-C

oun

ty L

ocat

ion

Qu

otie

nt

Rel

ativ

e to

U.S

. (A

vg.=

1.0)

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%

Nin

e-C

oun

ty L

ocat

ion

Qu

otie

nt

Rel

ativ

e to

U.S

. (A

vg.=

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%

Nin

e-C

oun

ty L

ocat

ion

Qu

otie

nt

Rel

ativ

e to

U.S

. (A

vg.=

1.0)

One-Year Direct Employment Growth (2012-2013)

Metro Denver Industry Clusters