COVER STORY, MAY 2008

CITIES LOOKING TO DEVELOP
Western cities continue to find successful methods to bring new business and development to their communities.
Amy Bigley

Attracting new businesses to a city is always a challenge for an economic development organization. Cities have to continually develop innovative strategies and retention programs to ensure a high quality of life and successful developments. Western Real Estate Business spoke with a few communities in Arizona, California and Idaho to see how they rise to the challenge.

Gilbert, Arizona

The 60-acre Mercy Gilbert Medical Center is part of a burgeoning health-care sector in Gilbert, Arizona.

Ranked as one of the fastest growing cities in the United States, Gilbert currently holds a population of 209,000 people, with a projected 305,000 at build-out in approximately 2025.

Gilbert is targeting five industry clusters — life sciences, aerospace, high technology, advanced business services and entertainment/retail; however, more intense and specific research is currently underway within the life sciences sector.

“[Life sciences] is gaining tremendous momentum within the community through the addition of three new hospitals, the announcement of an Ironwood Cancer Treatment and Research facility, and the inclusion of more than 1 million square feet of medial office space,” says Kelly Patton, business development specialist for the town of Gilbert.

Other healthcare-related developments include the 60-acre Mercy Gilbert Medical Center, the 871,000-square-foot Banner Gateway Medical Center, Dmytro Development’s $50 million Glassrock Center and LGE Design Build’s 128,000-square-foot Higley Gateway Professional Center.

In addition to the recent medical office development, the town also has several economic growth corridors identified within its municipal planning area (MPA) that combine to offer more than 3 million square feet of space to both prospective and existing businesses such as General Dynamics, Lockheed Martin, Tomar Enterprises, EchoStar and GoDaddy.com.

To compete in the shifting economy and compensate for land costs and the sharp increase in population, the city is establishing a vertical development ordinance allowing height-by-right in five geographic locations throughout the 76-mile MPA. “This ordinance will focus on the promotion of higher-density projects by allowing up to six-story buildings by right within identified urban growth corridors, and the potential to increase to 11 stories after meeting certain criteria,” says Patton.

Additionally, the town maintains a proactive business climate with commitment to a 90-day permitting process on qualified projects and shovel-ready sites or sites that already have the required infrastructure and zoning in place. “Gilbert also hosts a program called PERT (Partners Experiencing Results Together) designed to support an efficient development and construction schedule for all large-scale commercial projects,” notes Patton.

Continued commitment to various pro-business programs will help to ensure Gilbert’s economic development. The town’s key messages include (1) realize opportunity – economic growth is driven by knowledge, skills, innovation and entrepreneurship; (2) quality of place attracts people and investment; (3) ensure fiscal stability – ensuring the ongoing fiscal sustainability of Gilbert is critical to competitiveness, economic growth and quality of life; and (4) collective resources by utilizing Gilbert’s economic assets and leveraging public-private partnerships.

“The principal goal of business development is to improve the livability and quality of life in Gilbert through economic growth that creates high-quality jobs, generates wealth and investment, and ensures long term fiscal health,” says Patton.

Ontario, California

Oliver McMillan is converting the Historic Guasti District in Ontario, California, into an upscale entertainment and business district, which will include 415,000 square feet of commercial space, 500,000 square feet of office space, 400 residential units and two hotels.

With a population of more than 172,000, Ontario is continuing to experience significant population and job growth, which is making the city a hot spot for economic development. Ontario’s population growth and its pro-business environment fuse to make the city a prime location for businesses and new developments. To ensure that companies and new businesses thrive in the city, the Ontario economic development department is handpicking new projects to create a localization of amenities and an inviting community to boost both civic pride and employee retention rates.

“Designed with a ‘live, work, play’ emphasis, Ontario’s new lifestyle hubs will be built with amenities such as Class A office space, luxury and neighborhood retail, fitness centers and recreation activities, upscale dining and modern housing,” explains Mary Jane Olhasso, economic development director of the city of Ontario.

As the city emerges as the region’s engineering capital, population growth and corporate migration of higher-end technology and professional service firms to the city are driving the construction of more than 1 million square feet of Class A office space.

While the outlying areas of Ontario continue to see an influx of office and industrial developments, downtown Ontario is receiving a facelift with the development of mixed-use lifestyle projects.

When it opens this fall, the 225,000-square-foot Citizens Business Bank Arena will be a substantial upgrade to Ontario, California's event/entertainment sector.

Current projects include Panattoni Development Co.’s 1 million-square-foot Piemonte at the Ontario Center located in the heart of Ontario’s business and retail area; Ontario Town Center in the city’s Civic Center District, which is being developed by the city of Ontario and J.H. Synder Company; and Oliver McMillan’s conversion of the Historic Guasti District into an upscale entertainment and business district, offering commercial, office, residential and hotel space.

One of the most anticipated projects is Citizens Business Bank Arena, a 225,000-square-foot, world-class sports and entertainment venue. With a grand opening slated for fall, the arena will provide entertainment options to a region of nearly 4 million residents, which have long been underserved. Owned by the city and operated by AEG, the arena will be home to Ontario Reign, an affiliate of the Los Angeles Kings and the Inland Empire’s first professional hockey team. “We anticipate the arena to attract new visitors and businesses to the area, making Ontario a regional destination for commerce, lifestyle and entertainment,” says Olhasso.

Ontario’s recent development boom can be attributed to the city’s concept of offering corporate end users a ‘complete community.’ “Ontario not only offers competitive lease rates, flexible workspace and an educated workforce, but it has the lifestyle amenities and housing opportunities to attract everyone from the computer technician to the CEO,” explains Olhasso.

The city’s leadership team is currently developing key growth strategies to attract more companies and businesses. The targeted strategies are three-fold to (1) remain competitive in the global marketplace, (2) provide a stable and secure investment, and mostly importantly, (3) continually improve the quality of life in Ontario.

Olhasso notes that the city of Ontario runs much like a successful corporation through sound investments and planning development for the city’s future growth and needs. The city’s collaborative effort with the private sector has contributed to the overall strength and stability of the Ontario market. Additionally, by maintaining a proactive role of improving infrastructure and assisting developers, the city has stayed ahead of market conditions to create a desirable marketplace.

“It is important that [the city] continues to create urban centers, in order to maintain the office, retail and housing balance, therefore creating an ideal live/work environment,” says Olhasso.

Northern Idaho

Leading Coeur d’Alene, Idaho's targeted downtown revitalization efforts is SRM Development’s more than 160-acre, mixed-use Riverstone development.

With a population of 22,352 people, Moscow, Idaho, is looking to attract five business clusters: electronics, bio-science, environmental services and sustainability, advanced materials, and nano-technology.

“These clusters reflect the strategic research focus of the University of Idaho and Washington State University research departments for the next 5 years,” notes Margaret Howlett, executive director of Latah Economic Development Council in Latah County, Idaho.

The city’s proximity to two major universities and its high quality of life create an ideal environment for university-related research businesses and companies. Additionally, the influx of research businesses and employees fuel the need for more retail, entertainment and commercial space. The city has created a 163-acre Urban Renewal District called Legacy Crossing, which is located between the city’s historic downtown and the University of Idaho. Mixed-use projects are being targeted to fill Legacy Crossing, while the city’s Alturas Urban Renewal District is being developed into a state-of-the-art business park.

Due north in Kootenai County (population 140,000), economic development strategies and programs differ throughout the varying cities but the overall area is greatly benefiting from the various Urban Renewable Districts.

“[The districts] have been set up to partner with development for infrastructure,” says Steve Griffits, president of Jobs Plus. “The Urban Renewable Districts are a great partnership as we go forward.”

Post Falls is focusing on downtown revitalization and job growth, as evident in the development of Riverbend Commerce Park, a 300-acre light-industrial/office campus that recently hosted the groundbreaking of the $50 million Biopol Laboratory plant. Coeur d’Alene is also targeting downtown revitalization with SRM Development’s more than 160-acre, mixed-use Riverstone development. Additionally, Hayden is focused on downtown and industrial growth, with the 71-acre Warren K. Industrial Park leading the way.

Continuing east on Interstate 90, Silver Valley is seeking businesses that support the mining industry whether in materials, contracting, consulting or education and training. Chuck Wardwell, economic development specialist, explains that the economic development organization is working with local educational facilities, including the University of Idaho, to develop an Industrial Training Facility in the Silver Valley that would prepare workers for the mining industry.

“Efforts will be concentrated on workforce development and education over the next few years as well as encouraging an entrepreneurial spirit in the youth of the community,” says Wardwell. “Previous efforts of building an area conducive to the resort industry have been successful, now energy must be directed at providing qualified workers to our area businesses.”

About 115 miles north, Bonners Ferry is seeking small independent manufacturing firms to fill the community’s two industrial development areas. Although the city does not have any special programs currently in place for developers or new businesses, the community does offer low electrical rates, reasonable land prices, a proactive and pro-business county and city government, and a North Idaho College campus that offers distant learning opportunities.

With the recent closure of Riley Creek Mill, the community of 2,755 people lost 125 living-wage jobs. “The new focus is to find a way to replace those jobs, by working with existing local businesses to businesses and markets, as well as recruiting new manufacturing businesses to relocate to the area,” says Michael Sloan, economic development director of the city of Bonners Ferry.

©2008 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.