Tucson Mayor Jonathan Rothschild and Sun Corridor Inc. Chairman Dennis Minano share their insights into economic development and jobs growth:
What are your thoughts on the local economy’s health?
Rothschild: I’m a member of a very exclusive club, ‘Western mayors without oceans.’ We know ports bring prosperity. I’m also mayor of a city without rivers and the mayor of a ‘second city’ which is not a state capital.
We are what we’ve always been, a prime location for a logistics hub, and that’s become more apparent as Mexico has begun to thrive.
Which jobs will grow in 2016?
Minano: Since the beginning of our fiscal year last July, Sun Corridor Inc. has worked with over 200 companies considering relocation or expansion. Our short-listed projects include a wide range of industries including aerospace and defense, biotech and health and manufacturing. Economic development is a team sport, and we work in partnership with the Arizona Commerce Authority, Pima County and municipalities throughout Southern Arizona.
Logistics, aerospace and biotech have been targeted by economic development efforts. How is the city helping?
Rothschild: One of the things that encourages me is that for the first time in many years the community has come together behind a common development issue. Our primary jobs incentive for employers who bring 25-plus jobs to the city at 125 percent of the median income and make a capital investment of at least $3 million have a number of development and impact fees waived so they can put it into their project’s infrastructure or job training.
We used annexation to create a fund for Raytheon so they can purchase additional land near its location and annexed the airport and surrounding lands to use for new and existing business in that industry.
There is much talk about the need to have shovel-ready sites to help recruit companies. How are we doing on that front?
Minano: Pima County and Sun Corridor Inc. are working to upgrade sites with various utility services to make those parcels more attractive to local and new business. The Port of Tucson is shovel-ready and there are other smaller sites which are at various stages of development.
The good news is, most if not all of our local governments have speeded their development services processes, and we now see our clients receiving approvals in hours or days, not weeks or months as before.
Rothschild: Shovel-ready sites include those who want land and to build themselves, and those who want turnkey property. Regarding land wants, the city and county are working together on initiatives to prepare state land and land near the freeways and airport. The county is prepared to bring in wastewater and the city to bring in water and partner with the utilities so we can be ready at a moment’s notice.
As for turnkey, our industrial inventory is the lowest since 2006, which is good news but also bad. When these companies come to town, we don’t have enough inventory ready. We are working with site selectors to market to builders and get them to invest in some spec construction because there is much interest in our community.
Is there a particular challenge here in recruiting firms?
Minano: The top site selection criteria is always talent and related individual skills — do we have enough talent at the necessary skill level to fill a company’s needs and growth plans? Education is always fundamental — if employees are relocating, will they find schools that maximize a positive future for their children? Will the K-12/higher education system provide a quality, long-term pool of employees for the company?
In addition, companies continue to prefer communities that offer them the ability to do business in the most efficient ways, so direct air service is always a factor.
Finally, positive perceptions of our region as a place to live and work … are critical. Online information is always at a potential employee’s fingertips and we, as a community, have to continually highlight and emphasize the positive about our schools, downtown, infrastructure improvements, etc., to attract and retain our region’s talent.
Is there a “next big thing” on the horizon for Tucson?
Rothschild: We are always working on prospects, constantly talking to new capital about coming to Tucson. It’s something that as a community we didn’t do for a long time.
Where we really have seen the most growth is in young entrepreneurs. We’ve seen incredible increase in small startup companies that have the potential to develop into wealth-producing corporations. In the past few years, Tech Launch has filed 200 patents, 88 licenses and created 12 startups.
Any news you would like to share?
Minano: Last November, Sun Corridor Inc. was chosen to be the administrator for the March 2017 Site Selectors Guild annual conference, to be held for the first time in Tucson. This prestigious conference, attended by the top site selectors in the world, will showcase our assets to this important audience of key decision makers for companies looking to relocate and expand their business operations. Our team has been busy planning strategies for … showing that Southern Arizona is the place where they and their clients can create a successful future.
