City’s 2nd Annual Economic Forum outlines development challenges

Tuesday afternoon Senior Economic Consultant Ioanna Morfessis presented long-term strategies for sustainable economic development in Maricopa.

She reminded those who crowded the Global Water Center meeting room, “We are dealing with economic development, not economic miracles.” Noting that in past centuries the economy was driven first by agriculture then by mass production, now, in the 21st century, it is being driven by a search for intellectual capital or talented people.

In this global economy with a worldwide economic downturn, Maricopa is no longer competing locally, statewide or even nationally, but internationally, for businesses and industry. Business locations and expansions are now directly related to overall operating costs, whether domestic or international in scope. “Companies need to do more with less,” explained Morfessis.

“Here we are; we have a wonderful city. Correct. Everyone wants to be here. Incorrect,” offered Morfessis, explaining some of the top factors businesses use when making location decisions.

Some of those factors are: knowledgeable workers with amenities and housing provided for them, highway accessibility, energy availability and cost, operating costs, cost of the work force and, perhaps the most important concern for Maricopa, availability of buildings and land. Morfessis readily admitted that Maricopa was not competitive for 45 different companies in the past year because there were no ready sites for them.

Maricopa’s committed and qualified mayor, council and city staff as well as its strategic partners, the Arizona Department of Commerce, the Greater Phoenix Economic Council and the Maricopa Chamber of Commerce, are considered economic development assets.

However, several challenges to economic development must be overcome. The strategic report cites the downward spiral of the economy, unrealistic expectations from developers, citizens and local media, lack of a downtown city center, lack of shovel ready sites, lack of well-developed transportation access, the state’s real estate meltdown and a potential for prolonged global economic recession.

The strategic economic development plan outlined will capitalize on the history and values of a highly educated and family-oriented Maricopa and its proximity to the Greater Phoenix area. Recognition and coverage of Maricopa as “an important new city,” the planning and creation of a downtown core and catalysts for a business/industrial park, as well as a hotel are all part of the big picture.

Obviously, capturing the high value projects locating in the area is a priority. Those “buffalo” projects will optimally be based on the following economic development pillars: health and wellness, clean and green technologies and jobs (i.e. Pinal Energy, Global Water, the University of Arizona Agricultural Research Center), regional aviation, higher education (i.e. the new Maricopa Center to be funded by the recently passed CAC bond initiative), business and professional services, hospitality and visitor attractions and retail/entertainment.

City Economic Development Manager Danielle Casey reiterated, “Anything we can do to expose Maricopa to larger markets we’re working on.” She mentioned the city’s MaricopaProspector.com, “a central resource for commercial site listings.” Casey also noted that branding for the city and an economic tool kit have been major projects.

Additionally, a contract with the urban design and planning firm Morrison Maierle, Inc. should see the redevelopment district project plan completed by April or May.

“Small business relationships are critical as demonstrated largely through our partnership with the Maricopa Chamber of Commerce,” explained Casey, who added, “Maricopa has a high retail sales leakage. It is critical we provide convincing arguments for retailers to locate here.”

To that end, Buxton Co. was contracted by the city of Maricopa to do a special report, targeting retail opportunities. Buxton uses psychographic analysis to match specific retailers and restaurants to the buying habits and lifestyles of residents.

All households fall into one of 66 psychographic segments. For example, segment 32, New Homesteaders, makes up seven percent of this trade area. Young, middle class, dual income homeowners with child-centered lifestyles who own campers, boats or Playstations characterize this segment.

Buxton representative Chris Briggs explained that the company looks beyond rooftops or population density. Locally, Edison Road and State Route 347 were selected for complete analysis and retail matching. Buxton analyzes the trade area, consumers and their buying habits within a 15-mile drive time. “We match up retail needs with what’s out there in terms of retail,” said Briggs, “and we match to specific retailers by name.” He noted, “100 retailers overall had been identified as good fits.”

City Manager Kevin Evans told the audience during the question and answer period, “This city has invested in economic development. Everyone on the council running had it as a top priority. We’re not waiting; we will be ready with shovel ready sites.”

Morfessis added the caveat, “We can’t control the global economy, but I feel very optimistic that we’ll bring projects in three major sectors to completion.”

“Economic development projects are like hunting,” said Evans. “It used to be they’d just fly, and you’d hit what you could. Now you have to be a big game hunter. You have to target it, track it and then take it down.”

Following the forum, Maricopa resident Peggy Chapados said, “From the comments made and the information shared at the forum, it’s obvious people care and want to see Maricopa thrive. It’s also painfully clear that it’s going to take a long time for us to get there.”

Chapados was also concerned about the economic deals that didn’t happen. “While I understand and appreciate the need for confidentiality, it would be reassuring if more could be shared about some of the businesses interested in our city. To hear our consultant say that Maricopa couldn’t compete in at least 45 potential deals in the last year because we couldn’t meet infrastructure and building needs is disappointing. Let’s face it; we’re going to be a bedroom community for a while.”

Former Chamber vice-president Jake Romero, after the forum ended, inquired of city staff whether some type of exit report was being done for businesses that were closing their doors. It appeared the city thought the Chamber was talking to these retailers. Since no exit report or check list of problems currently exists, perhaps Romero’s idea is one small but important economic development step focused on keeping retailers rather than seeking new ones.

Photos by Joyce Hollis