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HomeMy WebLinkAboutRES 86-359 R E S O L U T I O N BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BEAUMONT:. THAT the Economic Development Goals, Objectives and Policies, a copy of which is attached hereto as Exhibit "A", be, and they are hereby, approved and adopted. PASSED BY THE CITY COUNCIL of the City of Beaumont this the day ofr ,t, , 1986. - Mayor - a � 6' I R, LN �= [ FAI rm ta PRELIMINARY mi V L PM N Ll Y LAN _ R o � -` PLANNING DIVISION COMMUNITY DEVELOPMENT DEPT. NOVEMBER 17, 1986 �Q UM o a 9 0 CONTENTS page Preface . . . . . . . . . . . . . . . 1 Definition of Economic Development . . . . . 2 Introduction . . . . . . . . . . . . . . . 3 Summary of Research Findings . . . . . . . . 5 Goal Statement . . . . . . . . . . . . . . . 12 Objectives and Policies . . . . . . . . . . 14 Long Range Strategies . . . . . . . . . . . 22 Development of an Action Plan . . . . . . 23 PREFACE On April 5, 1986, Beaumont's voters approved a major _ update of the City Charter. Most of the Charter revisions were intended to improve the way the City Government carries out its responsibilities to the public. One important change was a requirement for a new component to the City's Comprehensive Plan. The Comprehensive Plan provides, in written and graphic form, goals, objectives, policies and proposals for Beaumont's future physical growth and development. Elements of the Plan address land use, transportation, parks and open space, utilities and housing. In the Charter election, the citizens voted to add an Economic Development element to the Comprehensive Plan. - The new element was proposed by the City staff for two major reasons. First most of the physical development policies and proposals contained in the Comprehensive Plan are closely tied to the related trends of employment and population growth. The physical development goals of the Plan cannot be achieved without expansion of Beaumont's economy. Second, the state of the economy is the most important development issue in Beaumont in terms of its direct effects upon the present and future quality of life of the citizens. It is only appropriate that the Comprehensive Plan should address the most important local issue of the 1980 's and 1990 's. With its adoption, the Economic Development Policy Plan will serve two major purposes. First, it will provide general policy guidance to the Planning Commission, City staff, and City Council. Second, it will set the stage for development of an Action Plan of specific, immediate steps to be taken to improve Beaumont's economy. The ACL:ion Plan will include a number of actions to be taken by the City, but it will not be limited to the City. The City's elected and appointed officials will work with a wide array of citizens and organizations to implement a strategy which will create jobs. x DEFINITION[ OF ECONOMIC DEVELOPMENT Economic development a is widely discussed, but often poorly understood, concept. Economic development is often seen as the attraction of new industries. While attraction of new industry is certainly a worthwhile goal and should be an important part of any comprehensive economic - development program, an economic development program should also include activities designed to retain and expand existing businesses and industries and to create entirely new businesses. Research indicates that most industrial relocations involve moving to a new site within the same metropolitan area and that the number of organizations in the United States actively soliciting industrial prospects greatly exceeds the number of new industrial plants built each year. Most economic development practitioners agree that efforts at industrial retention/expansion and - development of new small local businesses and industries often offer the greatest potential for successful economic development. Economic development also involves strategic planning: setting goals, determining the competitive strengths and weaknesses of the area economy and devising a course of action to achieve the desired goals. ; For the purpose of this plan, economic development is defined as follows: CQ3 C i l l I 'i..: S " ' ' CU SS t S T3t3 $lRrATE CEy� SEA ` IEW J3S, FFS OtlRRt3 ..:;.%'::: tY3 '1` 1RLI331 2 INTRODUCTION The economic problems Beaumont faces are very real and very serious. Regardless of when or whether the oil industry revives, things will never be the same. We must also realize, however, that we have some very real strengths which we can use to rebuild our economy and put our community back on track. If our city is going to progress, we must make a truly heroic effort to develop a competitive edge in the worldwide econonmy of the 21st century. To provide City Council with a policy framework for addressing the number one local issue, economic growth, a preliminary Economic Development Policy Plan has been prepared. The Plan reflects the City's acceptance of a more significant role in economic development and the determination of the City Council to mobilize the City's resources for the crucial task of building a new Beaumont - area economy. 3 The Economic Development Policy Plan consists of goals, objectives, policies, and proposals for guiding Beaumont' s future economic growth and development. The strategy was developed following an inventory and analysis of the characteristics of Beaumont's economy, obstacles to economic growth, opportunities for new employment, and Beaumont' s competitive position in terms of locational attributes and business climate. -The Policy Plan is the first major step in developing an action-oriented Economic Development Strategy. The economic development policies are based on one goal: to increase the total number of permanent jobs available to citizens of Beaumont and the Southeast Texas region. Five objectives have been identified to address this goal, and policies have been drafted to meet each objective. As the second major part of the process of activating an Economic Development Strategy, Action Strategies for implementation of each objective will be proposed. 4 ECONOMIC DEVELOPMENT STRATEGY PART : POLICY PLAN ISSUES CONCLUSIONS GOALS, OBJECTIVES., POLICIES IN LOCI GmRA GE STRATEGIES ACTION STRATEGIES ECONOMIC DEVELOPMENT STRATEGY _ PART S: ACTION PROGRAM ACTION STRATEGIES W v Z a PRIORITIZE w PRI � � ® STRATEGIES ug a IDENTIFY a II' PLE EDITOR 2 4 0 =IMPLEMENTATION � a The highest priority strategies will be identified and assigned to specific departments, agencies, or project teams. Those high-priority strategies will comprise an Action Plan. Progress of the Action Plan will be monitored closely, and adjustments in the plan will be made as necessary, as successful and unsuccessful strategies are evaluated. SUMMARY OF RESEARCH FINDINGS The policies and proposals contained in the preliminary Economic Development Strategy are based on a strategic planning process which involved an assessment of local and regional competitive strengths and weaknesses. The following conclusions emerged from the research/analysis phase of the planning process, and influenced the formulation of policies and proposals: o The decline in the Beaumont area' s economy over the past five years is a result of long-term trends in the 5 national and international manufacturing sectors. Since the mid 19501s, the proportion of blue collar jobs in the American economy has been declining. And, in recent years, industries such as shipbuilding, petroleum refining, and petrochemicals have been losing significant market shares to foreign producers. These two trends have had a larger impact on the Beaumont area economy than most other regional economics because of the area' s high level of specialization in shipbuilding, oil refining, and petrochemical, production. There is little, if - anything, that can be done locally to reverse these long-term, global trends. What can be done locally is to assist local firms and plants to be competitive in the world economy. Although the U.S. has lost dominance in many traditional heavy industries, there are still growth-markets to be tapped. Using the petrochemical industry as an example, foreign competitors with newly i 6 constructed plants may capture a large segment of the _ market for "commodity" industrial chemicals, however American producers will remain competitive in the production of more specialized products because of superior research and development capabilities. A similar trend toward developing more specialized products provides the opportunity to avoid head to head competition with foreign competitors, with their new facilities and cheap labor, in several other heavy industries, including refining and production of valves a,nd fittings. o There are sectors of the local economy which have good growth prospects. Examples include health care and medical services, soft drinks, newspapers, commercial printing, industrial organic chemcials, high-performance valves and pipe fittings, radio and TV communications equipment, and optical instruments. These industries currently account for about 17, 000 jobs in the 3-county metropolitan area. 7 Growth in many of these industries at the national level is expected to generally exceed growth in the Gross National Product over the next several years. o One of the most effective economic development functions for a local government is to identify barriers to economic growth and, where possible, remove or reduce these barriers. Specific opportunities include: working with banks and Federal agencies to increase the availability of debt financing and venture capital for business expansions and start-ups. simplifying and streamlining City regulations and permitting procedures affecting business expansion. - providing leadership in developing a community attitude of unity and determination in the effort to rebuild the area economy. 8 o There are several very significant resources Beaumont can build on in creating a new economy: Access to population of 385, 000 in the 3-county, Beaumont/Port Arthur Metropolitan Statistical Area (MSA) . This provides a good market (the 81th largest MSA in the U.S. ) for retail consumer goods and services. Access to an "expanded market area" with a population of 778 , 500 (consisting of the Beaumont/Port Arthur MSA and the counties and parishes within 50 miles of Beaumont) provides a good market base for specialized or high-quality retailing, health and and other professional services, and "day-trip" tourism. The population of the "expanded market area" is also an asset in providing a large labor market for potential new industry and for providing a sizable market for wholesaling and distribution activities. The labor force in the Beaumont area includes a diversified mix of skilled, unskilled, and 9 trainable workers. Labor relations have improved tremendously in the last 5 years. Outside of the "big three", local industries (refining, petro-chemicals, and shipbuilding) the cost of labor is very competive with the rest of Texas. - According to local industrial real estate specialists, there is a more than adequate supply in Beaumont of industrial and commercial development sites with adequate utilities and good transportation access. - A widely diversified transportation system serves the area with freeway, rail, international port, and jet aircraft transportation. - Unlike other regions in the Southwest, the Beaumont area has a large, reliable supply of fresh surface water. 10 Lamar University provides the nucleus of new research and technology oriented businesses. Based on these and other findings, a preliminary Economic Development Strategy was prepared for public review and discussion, refinement, and adoption by City Council as an element of the Comprehensive Plan. The basic message of the Economic Development Strategy is that, although this area ' s economy has sustained some very severe setbacks, the situation is not hopeless and the commuinity is not powerless to improve the economy. The Economic Development Strategy advocates concentrating on the problems that the community can do something about and using the area's resources to the best advantage. The objectives, policies, and strategies contained in the plan were formulated to address one simple goal: to increase the number of permanent jobs available to citizens of Beaumont and Southeast Texas. In order to meet this goal, it will be necessary for the entire community to unite to make our businesses and industries competitive in the national and inter-national economic arenas. it GOAL: INCREASE THE NUMBER OF PERMANENT JOBS AVAILABLE TO CITIZENS OF BEAUMONT AND SOUTHEAST TEXAS The decline in manufacturing in the Beaumont-Port Arthur Metropolitan area, which began in late 1981, has resulted in the loss of 15, 000 jobs in refineries, petrochemical plants, and shipyards. The resulting loss in buying power has led to declining employment in retail and wholesale sales, services, and residential and commercial construction. Sales tax revenues and property taxes, the city's largest revenue sources, have been adversely affected, resulting in budget constraints which limit the city' s ability to provide services and capital improvements. In order to alleviate human suffering, prevent a major out-migrati-on of working-age families, and put Beaumont in a position to enter the 21st century as a city with a future, the community must make a prolonged, unified effort to attract and create new jobs (and to retain existing ones) . WHAT KIND OF JOBS? While virtually any new jobs would help the community's economic situation, emphasis should be placed on the jobs which are most likely to lead to further job creation. Jobs in "basic" or ' "export" industries bring money into the region through production of goods or services that are exported outside of Beaumont. These jobs, which are generally relatively highly paid, create spendable household income, generating new jobs in sales and services. There, are also some specific types of jobs needed to address Beaumont' s unique population characteristics. Beaumont's female labor force is an asset which is under- utilized because the area economy has been dominated - by 12 heavy-industries which have had a traditionally male work force. Beaumont also needs jobs which can be filled by workers who were previously employed in shipyards, refineries, and chemical plants. These skilled workers are among Beaumont 's most valuable economic resources and will leave the area if new job opporytunities are not developed. Because of an especially high unemployment rate among Beaumont's sizable minority population, entry-level jobs with on-the-job training are needed to bring unskilled workers from low-income backgrounds into the work force. WHERE WILL THESE JOBS COME FROM? New jobs come from three sources: 1) expansion of existing businesses 2) creation of new, entrepreneurial enterprises 3) attraction of plants or businesses from outside the community. Research indicates that expansion of existing businesses and creation of new entrepreneurial enterprises account for 80 to 90% of all new jobs. Many experts in the field of economic development recommend that communities should concentrate their efforts in business expansion and start-ups, rather than competing for major new plants. Because of the severity of Beaumont's economic situation, however, the community must make a concentrated effort to create jobs by all three techniques, including the most difficult, industrial attraction. 13 OBJECTIVE #1: ESTABLISH AN EFFECTIVE ROLE FOR THE CITY OF BEAUMONT IN THE ECONOMIC DEVELOPMENT i PROCESS. _ Policy 1. 1: Role of the City The City will serve in a leadership role in the following areas of economic development: a) strategic .planning - analyzing Beaumont ' s competitive strengths and weaknesses in the world economy and then taking aggressive action to capitalize on the strengths and overcome the weaknesses. - b) legislative advocacy -- working closely and diligently with State and Federal elected officials to secure major funding assistance, obtain major Federal defense-related contracts, and to enact or change laws to increase the strategic competitiveness of the local/regional economy. c) capital formation and financial packaging -- development of programs, or, when appropriate, custom-tailored financing packages to assist in fixed asset financing and start-up capital. d) leveraging and public/private partnerships -- using the limited resources available to the City government, such as grants, development - incentives, infrastructure, land, and staff to attract private sector investments which will create or retain jobs and/or increase the tax base. ie) develop and communicate a vision of the future -- the City's elected officials and staff must motivate the community to set its sites on the goal of becoming a first-class medium-sized city with a quality of life capable of attracting new private investment and population. 14 _ f) broadening the base of public involvement in economic development -- mobilizing the entire community, especially including labor unions and minorities, for economic development. All citizens must feel that they have a personal stake in economic development and that their efforts will produce positive results. g) coordination -- The very loosely knit "economic development network" of over 20 groups as described earlier is a tremendous potential resource. The Mayor and City Council must provide a coordinating mechanism for working together with this network to meet the City's long-range and immediate economic development goals. The City will serve in a support role in the following areas, participating actively and lending whatever support is needed to other members of the economic development network: a) promotion: assisting the Chamber of Commerce, SET Inc. , the Convention and Visitors Bureau, and the other promotional groups in promoting Beaumont as a business location, tourist destination, etc. b) industrial attraction: assisting the Chamber/Economic Development Council in competing for new industry. c) job training The City will not engage in activities which would duplicate or detract from activities being successfully conducted by other organizations. Policy 1. 2 : The City' s Committment - The City will commit the assets it has available -- staff, land, taxing authority, infrastructure, 'tax- exempt bonding authority, and access to State and Federal grants -- to the local and regional economic development efforts. 15 Oe _ The City will also strive for excellence in conducting its basic responsibilities of providing public services and infrastructure, recognizing that an efficient, competent and responsive City government is one of the prerequisites for economic growth of a community. Policy 1. 3 : Public Return on Investment In determining where and how it's limited resource will be committed, the City will examine the potential return on the public's investment. Return on public investment will be measured in terms of jobs created, jobs retained, and broadening of the tax base. 16 OBJECTIVE #2: CREATE A BETTER CLIMATE FOR BUSINESS GROWTH. Policy 2 . 1: The, City of Beaumont recognizes that the degree of cooperation and support of local government plays a major role in business location and expansion decisions. The City resolves to improve its efficiency in providing assistance and services to to business. Policy 2 .2 : The City will examine and update its regulatory ordinances and procedures to eliminate "nuisance" regulations, reduce regulatory complexity, and increase permitting efficiency. Policy 2 . 3 : The City of Beaumont will be committed to improving the quality of life for current and future residents. Policy 2 . 4 : The City will be committed to improving the equitability of property taxes and to reducing the . property tax rate as quickly as financially feasible. Policy 2 . 5: The City will actively participatee in the regional effort to improve labor-management relations. 17 OBJECTIVE #3 : ATTRACT NEW BUSINESSES AND INDUSTRIES TO THE BEAUMONT AREA. - Policy 3 . 1: The City will work with the Chamber of Commerce, the John Gray Institute, and other economic development groups in a team effort to bring new businesses and industries to the Beaumont area. Policy 3 .2 : Efforts to attract new business and industry will be targetted on industries whose locational needs are consistent with the Beaumont area 's locational attributes. Policy 3 . 3 : The City' s support of efforts to attract industry will extend to the entire three-county region and will not be limited to Beaumont. Policy 3 . 4 : The City will encourage broad-based community support and participation in the industrial attraction effort. 18 OBJECTIVE ##4 : RETAIN AND EXPAND EXISTING BUSINESSES AND INDUSTIRIES. Policy 4. 1: The City of Beaumont recognizes that existing businesses and industries are the community' s most important economic resource and will support the efforts of existing businesses to expand and modernize. Policy 4 . 2 : An "outreach" program to foster continuing open lines of communication between the City government and existing businesses and industries will be initiated. ` Policy 4 .3 : Lamar University will be utilized as a center of technological and management innovation with major emphasis on application of new technology to local industry and technical assistance for businesses. 19 OBJ€CTIVE #5: STIMULATE THE CREATION OF NEW BUSINESSES. Policy 5. 1: Programs will be developed to provide supplemental financing assistance for new businesses. Policy 5. 2 : A small business incubator will be established to stimulate growth of new entrepreneurial business enterprises. (More than one incubator may be desirable. ) Policy 5. 3 : Support services and technical assistance programs for new business start-ups will be expanded. Policy 5.4 : Personal attention will be provided to address the needs and problems of emerging new businesses. 20 or OBJECTIVE #6: IMPROVE THE COMPETITIVE ADVANTAGES OF THE BEAUMONT AREA ECONOMY. Policy 6. 1: The City of Beaumont will assume a role of partnership with local business and industry in competing with producers in other regions, states and countries. This means City actions involving taxes, infrastructure, regulations and development incentives will be geared to making it easier, more efficient, and more advantageous to do business in Beaumont. Policy 6. 2 : The City of Beaumont will work with Lamar University and major local corporations to develop a research and technology-based business sector of the local economy. Policy 6. 3 : Expand the scope of Beaumont' s market area by capitalizing on the City' s role as a regional center of trade, professional services, entertainment, distribution, and medical services. Policy 6.4 : Expand the scope of markets available to local firms by promoting international trade. 21 LONG RANGE STRATEGIES Building a new economic base for the Beaumont area will take many years. Although there are actions that can be taken immediately to create new jobs, there are also some large-scale, long-range improvements that must be made to remove barriers to economic development and make Beaumont competitive. The following long-range strategies are recommended: • Improve academic and vocational educational opportunities at all levels (pre-school through graduate school) . Educational attainment of the population and the quality of education available in a community will be the most important economic development considerations in the future. ' • Achieve an equitable and moderate tax rate. This can be achieved by broadening the tax base, increased reliance on user fees, and adopting a more efficient alternative to costly long-term bond financing for capital improvements. A moderate and equitable tax structure and a favorable business climate are better overall economic development incentives than discretionary tax abatement decisions made on a case-by-case basis. Improving quality of life will also require improvements in the environment and the physical appearance of the city. • Improve Beaumont's quality of life by developing and improving recreation, health, education, and employment opportunities. o Continue to make progress in improving racial relations. A community divided along racial lines cannot make a unified effort to improve its economy. Successfully pursuing these long-range strategies will make Beaumont more attractive as a place to relocate, expand, or start a business venture. These strategies are also aimed at retaining and enlarging the middle-income population which provides a market for consumer goods and services. 22 DEVELOPING AN ACTION PLAN Adoption of the Economic Development Policy Plan is the first stage in developing a strategy for rebuilding Beaumont' s economy. The second phase of the process involves developing and implementing an Action Plan. The City staff is preparing an Action Plan comprised of a group of Action Strategies -- specific actions with finite time frames, cost estimates, and designated groups, agencies or individuals responsible for their implementation. Since there is a limit to the time and money available to devote to implementing the Action Plan, the City will work with participants in the economic development process -- other economic development organizations, civic groups, businesses, and citizens -- to prioritize the Strategies. Some Action Strategies, for which staff time and/or funding is currently available, are already being implemented. Table 1 is a list of Action Strategies currently being developed. An example of an Action Strategy is also attached. For the economic development effort to succeed, it will be necessary to create a much broader base of support than the City, Chamber of Commerce, and other organized economic development agencies. At an "Economic Summit" planned for early 1987, the entire community will be enlisted in the effort to rebuild Beaumont's economy. The purpose of the "Summit" will be to make economic recovery a community-wide project, with many organizations not traditionally identified with economic development involved as participants. 23 Table 1 Possible "Action Strategy" Topics * o improve availability of financing for business expansions and start-ups o assign a City employee to act in a Business Liaison role * o develop a "legislative advocacy" pr for Federal grants, contracts, and amfavorable legislation * o Economic Summit * o "adaptive reuse" of idle industrial facilities * o review and revise the Zoning Ordinance and permitting process to encourage economic growth * o develop a larger tourism industry by creating new attractions o expand and improve the City's programs to develop international trade o build a university related "research park" o build new industrial parks o establish a - "business incubator" to nurture new entrepreneurial enterprises o create a revolving fund to underwrite the training and initial employment of workers in t small "homegrown" businesses 9 o identify and assist small local businesses to participate in City contracting and purchasing - 24 * o improve zoning provisions for wholesaling, distribution, and light industry. o train City staff in all departments to develop an "economic development attitude" o support the Chamber of Commerce's efforts to attract "targetted" industries. Hire a national caliber consultant to refine and expand inventory of target industries, markets, and products. o actively pursue the location of additional State and Federal offices in Beaumont * Implementation in progress as of November 1986 25 r o o 0 0 a p IMPROVING ZONING FOR WHOLESALING, DISTRIBUTION AND RESTRICTED LIGHT INDUSTRY Background Warehousing and distribution are often cited as being both desirable and realistic "target industries" for Beaumont's economy because of the City's locational attributes for these activities. The location of the Wall Street Journal 's regional printing and distribution plant on Cardinal Drive illustrates Beaumont's competitiveness in wholesale trade and distribution. Many wholesaling, warehousing and distribution operations could operate on sites currentl Commercial/Multiple Dwelling y zoned General (SUP) is received for most heavy Mccommercialcloperations in GCMD districts. The SUP process compatibilit is designed to insure y between intensive commercial uses and neighboring land uses. The Specific Use Permit process generally takes from 5 to 7 weeks. request has been routinely Historically the SUP following recommendation from the Planning-Commission. An inventory of sites zoned GCMD indicated that these were large areas, especially along western Washington Boulevard and Cardinal Drive, where the SUP commercial development was not necessary Ceto for heavy surrounding properties. protect the RECOMMENDATIONS By rezoning properties shown on the attached map to "Commercial Manufacturing" (CM) , regulatory complexity and delays can be reduced and the public interest will not be Adversely affected. The CM district Of wholesaling, warehousing, distributions a commercial services and restricted, non-pollutin without the requirement for a Specific Use Perrmit. industry EXPECTED RESULTS Rezoning appropri4te GCMD tracts to CM will reduce costs and approval times for commercial and light industrial projects and will thereby make Beaumont more competitive for these developments. IMPLEMENTATION To be performed by: City Planning Staff Start: October, 1986 (ma n Conclude: February, 1987 Cost: (votebyaCatY research) Council) Staff time and expenses, already budgeted. C --1