The Quick Jab
by Bill Jabjiniak
Strong successes encourage future growth and activity in Mesa
The City of Mesa’s 2017/2018 Fiscal Year has closed as of June 30, 2018, and with it, another strong year of economic growth with significant wins for the Mesa Office of Economic Development (OED).
As a department, it is our mission to enhance Mesa’s economy, creating quality jobs to improve the overall quality of life for Mesa and its residents. We accomplish this mission by promoting Mesa as a premier location for business and targeting key industries that provide high wage jobs. We serve as the primary point of contact for companies, site selectors, and community stakeholders to obtain technical expertise and support services necessary to properly evaluate opportunities in Mesa.
There are four traditional standards on which most economic development organizations are measured:
- number of jobs created and retained by the companies OED assists
- the average annual wage of those jobs created or retained
- total capital investment created
- the total square footage of commercial space constructed or absorbed.
These metrics are direct outcomes of the OED’s efforts in business attraction, retention and expansion, entrepreneurship support, and redevelopment and revitalization programs. Through these lines of service we track the effectiveness of our department, and it is important to share and celebrate our performance in these areas.
EXCEEDING EXPECTATIONS
This fiscal year marks the last year of our current Economic Development Strategic Plan, which aids to guide OED’s efforts in attracting new companies to the City and assisting existing Mesa companies in their expansions. We are pleased to report that Mesa OED significantly exceeded these fiscal year goals set in our strategic plan. The table below illustrates our performance and targets across four of our key department metrics:
These achievements took diligent effort and work from our OED staff, as well as constant collaboration with numerous other city departments. We also could not have brought these jobs and investments to Mesa without close collaboration with our partners at the Arizona Commerce Authority, the Greater Phoenix Economic Council, the commercial brokerage and development communities, and many others. It takes a village to bring many of these major projects and developments to reality, and we are fortunate to have many great partners across the community, region, and state.
MAJOR SUCCESS STORIES
The aforementioned metrics were realized through some impactful business attraction efforts this year to help bring new investment and high-quality jobs into the community. Mesa OED successfully facilitated 38 projects in Mesa this fiscal year, ranging from multi-million dollar data center projects to assisting entrepreneurial ventures and startups in LaunchPoint, Mesa’s Business Accelerator.
Highlights include:
EdgeCore Break Grounds on $2 Billion Data Center Campus
In March 2018, EdgeCore Internet Real Estate broke ground on a $450 million, 200,000-square-foot Phase I Building of a major data center campus inside the Elliot Road Technology Corridor, which continues to garner national attention from the technology industry. EdgeCore’s full campus build-out at Eastmark will total 1.25 million square feet and reach an estimated $2 billion in investment.
Northrup Grumman Expansion
In March 2018, Northrup Grumman (formerly Orbital ATK) announced a 36,000-square-foot expansion of it's operation in Mesa’s Falcon District, creating 60 new, high-paying engineering and manufacturing jobs. This expansion will nearly double the company’s current production capacity in Mesa.
Urbix Resources Earns Accolades
Urbix Resources, a start-up company changing the way the world uses graphite, is one of LaunchPoint’s biggest tenants and success stories. It continues to grow rapidly, hire new employees, and garner national attention. Urbix CEO, Adam Small, was named to the prestigious Forbes magazine’s 2017 “30 Under 30” List, and the company raised $3.5 million in it's Series A round of funding. Growing entrepreneurship in Mesa remains a key focus for OED, and Urbix serves as a premier example of innovative ventures growing in our community.
AQST Space Systems Relocates HQ from Puerto Rico to Mesa
AQST Space Systems has moved it's headquarters from Puerto Rico to Mesa, creating 125 new jobs for the city. The aerospace company will be manufacturing and assembling rockets and small satellites, expecting to begin production by the end of 2018.
These successes and others have helped make this past year a remarkable one for Mesa.
In the last five years, Mesa OED has aided in the creation of over 11,100 new jobs and $4.6 billion in investment.
Despite our successes, we are always looking towards the future, and with major transformational projects underway like ASU’s Downtown Mesa Campus and the 1.3 million-square-foot UNION at Riverview office development, we are excited for what this next year will have in store for Mesa.
Thank you for your support. Please contact me with questions or comments.
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Mesa Economic Development Advisory Board members recognized for service
At the June 2018 City of Mesa Economic Development Advisory Board (EDAB) meeting, Jeff Pitcher, Laura Snow, and Jeff Crocket were recognized for their years of distinguished service on the EDAB board.
Pitcher, Partner at Ballard Spahr, LLP, served on the board for nearly nine years, two as board chair. Snow, Senior Director of Strategy and Planning for Banner Health, served six years, one as chair, two as vice-chair. Crockett of Crockett Law Group, PLLC, served for 10 years, three as chair.
“We greatly appreciate the service Jeff Pitcher, Laura Snow, and Jeff Crockett have provided the EDAB board over the many years,” Mesa Economic Development Director Bill Jabjiniak said. “Their insights and experience have been tremendous assets to the Board and to the City of Mesa.”
The Economic Development Advisory Board acts as the advisory board to the Mesa City Council on matters pertaining to economic development, including goal setting, strategic planning, marketing and business recruitment, retention and expansion. www.mesaaz.gov/economic
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Mesa Assistant Economic Development Director awarded AAED Member of the Year
The Arizona Association of Economic Developers (AAED) selected City of Mesa Assistant Economic Development Director, Jaye O’Donnell, the Member of the Year at the Annual Economic Development Distinguished by Excellence (EDDE) Awards dinner held May 2018 in Tucson, Arizona.
The prestigious EDDE Awards honor individuals and companies that have made significant contributions to the advancement of the organization and to economic growth within the state of Arizona. Recipients are selected from a pool of nominations made by members of AAED. Overall, 10 EDDEs were presented during an evening awards dinner at the AAED Spring Conference in Oro Valley.
“The winners of the EDDE Awards truly represent the best and brightest economic development practitioners and organizations in Arizona,” Joyce Grossman, AZED Pro, AAED’s executive director, said. “Their contributions throughout the state demonstrate not only a commitment to the communities they serve, but to the economic vitality across Arizona.”
AAED, founded in 1974, has a mission to serve as Arizona’s unified voice advocating for responsible economic development through an effective program of professional education, public policy and collaboration. www.aaed.com
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City of Mesa announces approved Opportunity Zones
The City of Mesa has 11 census tracts now approved as Opportunity Zones by the U.S. Department of Treasury. This federal program is meant to spur investment in low-income areas by providing tax benefits to investors who reinvest capital gains into Opportunity Zones.
The Opportunity Zones program allows state governors to nominate 25% of their qualifying low-income census tracts as opportunity zones. Arizona was one of the first states in the nation to submit a package for designation, with nominations being sent to the Treasury Department on March 21.
"Mesa has so many great locations for investment in Opportunity Zones," City of Mesa Economic Development Director Bill Jabjiniak said. "We now anticipate this new program to move investors off the sidelines and into development deals that will offer strong returns."
There are two requirements to take advantage of the tax benefits central to Opportunity Zones. First, the investment must be made via an Opportunity Fund. Second, the investments must be derived from a gain in another investment and transferred into an Opportunity Fund within 180 days of realizing that gain.
The tax benefits associated with this investment are that the tax on the realized gain is deferred and reduced if the investment is held in an Opportunity Fund for five to seven years. Second, gains on the Opportunity Fund investment will not be taxed if the investment is held for ten years. Opportunity Funds in turn must have at least 90% of their assets in qualified Opportunity Zone property.
The Governor's Office and the Arizona Commerce Authority worked with local governments, tribal communities, and counties to decide which census tracts would be submitted. As of April 9, Arizona's 168 submitted tracts became officially designated as Opportunity Zones.
For more information about Mesa's Opportunity Zones, visit: www.mesaaz.gov/business/economic-development/incentives-programs/opportunity-zones
