- 2020 ECONOMIC DEVELOPMENT - Greater Manhattan Economic Partnership
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2020 M A N H A T T A N ECONOMIC DEVELOPMENT A N N U A L R E P O R T R E C O V E R Y 2 J O B S 3 T A L E N T 4 ENTREPRENEURSHIP 5 I N N O V A T I O N
E C O N O M I C D E V E L O P M E N T V I S I O N CON S EN S US ST RAT EGI ES Through the work in recent years by the Greater Manhattan Recovery Project, the City of Manhattan, Region Reimagined, and the Knowledge Based Economic Development (KBED) partnership, Over the past several months through loans, grants, and technical assistance an consensus has emerged relative to building a more dynamic effective collaboration of the City of Manhattan, Riley County, Pottawatomie County, community and regional economy. This consensus has in turn and the Manhattan Area Chamber of Commerce has endeavored to stabilize locally highlighted the need not only for integrated strategies, but also owned small businesses. The community must now develop and expand programming for unified reporting regarding progress made. to support and rebuild economic capacity impacted by COVID 19. As efforts shift from direct response to long-term recovery, strategies that create economic diversification 2 ONE REP ORT and job growth by leveraging community strengths will be vital to success. Until now City, Chamber, and University leaders have had little sense of how, or if, various community economic development programming is aligned, and effectively no clear sense of Jobs aggregate progress made annually or over time. This document The strategy includes a community focus on economic diversification through is designed to be the first integrated look at the vision, attraction of high value businesses in specific targeted sectors and the prioritization strategies, and results of all prosperity building programming in of growth in existing Manhattan businesses. Job growth is vital to the community as our community. 3 it facilitates increased sales and property tax collection, retail and service industry The COVID-19 pandemic has created unexpected challenges growth, and other factors that drive economic vitality. and new opportunities for Manhattan’s future economic recovery and prosperity. This report seeks to outline the vision, strategies, and progress that our community’s economic development partners have acknowledged and are pursing in a Talent single, unified format. Manhattan attracts the smartest and most skilled individuals to pursue education that leads to prosperous careers. The plan prioritizes retaining these students as well as V IS I ON Fort Riley veterans while also assisting local businesses in recruiting key staff from 4 To be clear, any economic growth vision that is focused on the around the globe. Talent attraction and retention will support economic diversification few rather than on the many will ultimately fail. It is incumbent and job growth while making Manhattan a more desirable place for a diverse on us to assure that our vision is focused on the many. For population. Manhattan to prosper it must create jobs with sufficient pay upon which a family may be raised. It is these jobs that matter and these jobs that underpin the personal, business, and public Entrepreneurship financial and social health of a community. The plan prioritizes start-ups as a high value proposition for job creation, recognizing that many of Manhattan’s key private employers began as entrepreneurial ventures. Developing the community’s entrepreneurial ecosystem will attract talented, 5 entrepreneurial-minded individuals and enable multi-stage, long-term growth in Manhattan. Innovation Manhattan must leverage innovation from Kansas State University and the expected expansion of corporate partnerships and research surrounding NBAF to generate new job opportunities. Strong relationships between the University, NBAF and Economic Development entities provides the foundation for collaboration. Innovation-based companies will create job opportunities and attract talent to Manhattan. page 2 page 3
“The yea r we we nt vir tu al” R E C O V E R Y Highlights: ST RAT EGI ES M Chamber, City Develop Program for Quick Response to Pandemic Challenges • Accelerate the flow of federal and state grant and other funding into the community anhattan’s local businesses began struggling early in the COVID-19 pandemic crisis. Without federal or state assistance in the early stages • Create grants for small locally-owned businesses facing financial exigencies related to the pandemic of the mandatory closings, the Manhattan Area Chamber of Commerce and City of Manhattan worked quickly to develop and implement an • Provide programming focused on recovery, pivoting, future planning and risk mitigation emergency loan program. The program was described as a “bridge” to get businesses through a difficult period, • Reestablish the university as an economic driver in the community until such time that other resources were available. In most cases, these recipients were able to move forward with larger assistance grants through either the SBA or the • Secure long-term economic development funding for recovery and growth initiatives, especially focused on Payroll Protection Program. entrepreneurship and small business development In all some 84 businesses were assisted through loans of up to $5,000 totaling over $372,000. These loans are repayable over three years at 0% interest. CARES Funds Dedicated to that was made available to Manhattan “It’s been a The Manhattan Area Chamber of businesses located in that county. The Commerce provided several programs Assist Small Business funding provided by these counties made difficult few that assisted businesses both in the Riley County dedicated $2.5 million all the difference. months for our initial shutdowns as well as through their of its CARES allocation to assist small ultimate reopening. The program provided up to $15,000 entire team. businesses that suffered because of the for qualified expenses with certain In the initial stages, As one of the city’s partners, the There have COVID-19 pandemic and related business disadvantaged businesses receiving up to MACC worked with Chamber distributed over 1,700 restrictions. been struggles... its METL partners $16,500. masks during the pandemic. to bring informative The idea for direct aid to businesses but more sessions with state came from the partnership between Additional Pandemic Actions: importantly, leadership from the Department of KSU Innovation Partners, the City of Over 250 businesses received Manhattan and the Manhattan Area The Manhattan Area Chamber of there has been a Commerce, the Department of Labor Commerce created a resource page that and the Department of Health. One direct financial assistance from Chamber of Commerce. shared conviction listed programs, relayed county orders of the most attended events was a the partnership between KSU “In our regular conversations, it became and allowed local businesses to promote MACC exclusive session with the Chair Innovation Partners, the City of that we will all clear that while a number of excellent adjusted operating policies. In all, over of the Kansas Board of Cosmetology, Manhattan and the Manhattan ideas were being presented to Riley 4,000 people viewed the resource page. get through this David Yocum. This session was held as Area Chamber of Commerce. County Commissioners, none included Manhattan Area Chamber of Commerce together and operators were beginning to reopen assistance for small business,” said and had well over 100 local vendors Jason Smith, President and CEO of the staff made personal contacts and aided move on to a participate. over 1,000 businesses during the initial Manhattan Area Chamber of Commerce. bigger and better stages of the pandemic. The most The City of Manhattan led significant Smith said after discussions with the prevalent assistance calls related to future.” efforts to distribute PPE to local business. economic development team, the providing information on the Payroll In all, the city was able to distribute a Chamber presented a program to help Evan Grier, Protection Plan and the SBA disaster large quantity of masks to businesses to Manhattan businesses. The Riley County President, fund. MACC staff became familiar with help during the reopening. As one of the Commission reacted swiftly by approving One Egg Group the elements of the program and were city’s partners, the Chamber distributed $2.5 million in direct aid to small, able to provide a variety of information over 1,700 masks during the pandemic. locally owned businesses. Additionally, on these and other programs. Pottawatomie County commissioners worked with the Pottawatomie County EDC to develop a similar program page 5
R E C O V E R Y Economic Development Sales Tax: U SE OF S A LE S TAX F U NDS I 70% 20% 10% n 2018 leaders from around the the City of Manhattan proposing a 0.5% community convened to discuss a sales tax to be levied within the entire path forward for job creation and city limits of Manhattan, including those overall economic prosperity for portions of the City within Pottawatomie the Manhattan Region. The convening County. of the community’s stakeholders was On November 3, 2020, Manhattan voters partially a response to stagnant job growth in the region. This stagnation passed the ballot measure by a 61% to Debt & Economic Workforce created challenges for both the private 39% margin to adopt a 0.5% Economic Recovery and Relief sales tax. The tax Infrastructure Development Housing and public sectors across the board, and will take effect in 2023 and run through ultimately Manhattan residents were $45 million generated over 10 years $14 million over 10 years would be $6.5 million would be generated over 2033. Current estimates project the tax beginning to feel the impacts as well. would be dedicated toward debt an dedicated to job creation. This would 10 years and be dedicated toward will generate $6.5 million each year. The Greater Manhattan Project was infrastructure ($4.5 million annually). include recruitment, retention and workforce housing initiatives to help The Chamber actively supported the launched. The project had individuals Using sales tax revenue for this purpose expansion of businesses in Manhattan. recruit and retain talent for new and sales tax initiative and efforts to raise representing government, education, is equivalent to 7.677 mills in property The Manhattan Area Chamber of existing businesses. With the sale tax funds in support of the successful “Vote business and non-profits gather over taxes each year. Infrastructure projects Commerce is leading an economic passed, Manhattan has the opportunity Yes” campaign. the period of year to develop a strategic and improvements would be focused on development strategy based on jobs, to develop a workforce housing plan to plan. What resulted was an economic Based on language in the special areas to help the community prosper. talent, entrepreneurship, innovation and identify the needs of homeowners and development plan called Region question approved on the November 3rd recovery. renters. Reimagined. The strategies from the plan ballot, the sales tax proceeds will: fall into five categories: • Reduce the ad valorem property • Jobs tax burden on City taxpayers On November 3, 2020, • Stimulate the economic recovery • Talent Manhattan voters passed the sales from the COVID-19 pandemic tax ballot measure by a 61% to • Entrepreneurship • Pay for public infrastructure 39% margin • Innovation projects related to quality of life • Recovery and economic development Recovery was added in response to • Create economic development issues caused by the COVID-19 pandemic initiatives intended to recruit, retain and the recognition by community and grow jobs leaders of the need to work on economic • Begin workforce housing initiatives recovery. The question also defined how the tax As progress continued on Region revenues would be spent, with 70% Reimagined, it became clear that dedicated to pay for outstanding city securing long-term community support debt and the costs related to public and resources to fully implement the infrastructure, 20% to pay for job five strategic initiatives was vital to creation, recruitment and retention Manhattan’s future economic prosperity. initiatives, and 10% to pay for workforce Community and business leaders came housing initiatives. together and potential solutions were vetted. Ultimately a special question was placed on the 2020 election ballot by page 6 page 7
ST RAT EG I ES 2 J O B S Highlights: Bev-Hub, Grain-Craft, Corteva Agriscience all choose our region. A • Support & facilitate the retention and expansion of existing regional businesses new bottling “The The company currently produces company and packages beverages (water, cold chose advancements brew, juices, and teas) for national and • Advance strategies to help businesses generate Manhattan made by our international clients. Recently, Bev-Hub as its newest location in 2020. The purchased the former Tallgrass Brewing new revenues from outside the region economic Manhattan Area Chamber of Commerce Company building in the City’s Business and City of Manhattan worked with development Park near the Airport and they’ve begun • Build external awareness of the Manhattan Topeka-based Bev-Hub to locate its renovations to the existing floor to team exceed any newest facility in an existing facility at handle their anticipated equipment and region’s assets among prospective employers, single year I have the Manhattan Business Park. expansion. investors & corporate relocation professionals The City Commission voted to approve experienced in The regional cost/benefit analysis for an economic development agreement my 25 years in this project is favorable. Based on the • Attract investment and provide sufficient with Bev-Hub that includes a job City’s economic development return on incentives grant for $240,500 for the this work.” investment model, the total benefits of supply of economic growth enabling anticipated 37 full-time jobs they’ll bring the project to the City are estimated Jason Smith, to Manhattan. Additionally, Bev-Hub at $597,748.88, or net benefits of infrastructure President and will be eligible to apply for a 10-year CEO, Manhattan $250,843.00. The net benefits to the tax abatement and sales tax exemption Area Chamber of other taxing jurisdictions are also • Leverage innovation-based assets and with the issuance of Industrial Revenue positive: Riley County ($257,991.89), USD Commerce Bonds (IRBs) on their proposed roughly 383 ($312,925.91), and State of Kansas infrastructure to create economic diversification $900,000 expansion. It is estimated the ($2,889,508.50). that will attract companies and high-wage tax abatement annually will be around The project fits extremely well within $35,000 - $40,000. Construction is the Chamber’s economic development jobs underway on the IRBs are a financing tool that allows local strategy: governments to issue bonds on behalf of Bev-Hub facility • Jobs—New job creation (37 jobs adjacent to the a private business for a specific project over the first 3 years of operation Manhattan Regional and the private business then receives with opportunity for future growth) Airport. the proceeds. When granting IRBs, the Commission must determine the project • Talent—Opportunities for K-State will promote, stimulate, and develop the graduates and transitioning military general economic welfare and prosperity personnel. Additionally, specialized of the city, and thereby further promote, training is required for multiple stimulate, and develop the general positions. The City Commission voted to approve an economic welfare and prosperity of • Entrepreneurship—The company economic development agreement with Bev-Hub the State of Kansas. Included in their founder and investors are Based on the City’s economic IRBs, property taxes are exempt only on that includes a job incentives grant for $240,500 from Kansas and the project in development return on the expansion for a 10-year period as for the anticipated 37 full-time jobs they’ll bring allowed for by State Statute. Bev-Hub Manhattan facilitates current and investment model, the total future growth in our community. to Manhattan. will continue to pay taxes on the existing benefits of the project to the City $2.4 million building and plans to invest • Innovation—The company is working are estimated at $597,748.88. over $20 million in the facility with with K-State, including the Value- equipment, reconditioning and expanding Added Foods Lab and engagement the facility. to develop a talent pipeline. page 8 page 9
2 J O B S G P C rain Craft artnership Keeps Corteva in hamber Gives MHK a Among the changes in 2020 included: On Sept. 10 Grain Craft MHK Region. New Look in 2020 The • A new website at www.greatermanhattan.org that announced plans to relocate The Greater Manhattan Manhattan Area Chamber highlights reasons to be in the MHK region its corporate laboratory Economic Partnership (GMEP) of Commerce gave its to the Kansas Wheat Innovation hosted a location announcement for economic development program a • A new building and site database that syncs with the Center in Manhattan, Kansas. The Corteva Agriscience at the Columbian completely new look in 2020. The state’s database new laboratory is expected to open in Theatre in Wamego in January. Corteva changes were based upon the marketing • A new demographic database that incorporates hundreds 2021. The laboratory will be housed in Agriscience is a major strategy outlined by both Region of datapoints on the region. The site is integrated with the newly finished American agricultural Reimagined and a subsequent new website space within chemical and seed report from Austin based the Innovation company and was the Avalanche consulting. • New materials used to respond to requests from potential Center, which is located on the Kansas agricultural unit of new companies and site selectors “It is important that we State University Campus in the Edge DowDuPont prior to being • Specific target industry reports outlining the key reasons represent the community to the Collaboration District. The company is spun off as an independent to locate animal health, biosecurity and grain science highest degree possible,” said also engaged with K-State public company in June of 2019. industries in the region MACC Economic Development to support their talent and Corteva initially reached out to the Committee Chairman Matt Grain Craft has a long innovation needs. Manhattan Area Chamber of Commerce Crocker. “In today’s highly competitive history of engaging Grain Craft, the third largest for assistance in finding a location landscape, you may only get one quick with K-State to flour miller in the United that would fit their needs. When it was look to make an impression on decision “In today’s highly competitive landscape, you may only get support its talent and States, is a family-owned determined that Manhattan didn’t have a makers. Our team took the Avalanche one quick look to make an impression on decision makers., innovation needs. milling company offering location to meet the needs of the growing recommendations and implemented the premium bulk and bagged company, the Wamego Industrial Park key elements. In my opinion, we now Matt Crocker, flours for the baking, food was determined to be the right fit, and have the look in our materials worthy of Chair, Greater Manhattan Economic Partnership, service, pizza and tortilla industries. a 22,000 square foot building was built. our first-class standing among university “One phone call set the ball in motion cities.” https://www.graincraft.com/news/grain- and I’m happy to say that this is our first craft-announces-new-lab/ The update followed the creation of success story, not only for the city of the Greater Manhattan Economic Wamego, but for our region as a whole.” Development Partnership, a collaboration Greater Manhattan Economic Partnership, of the Chamber and Pottawatomie chair, Nancy Burton said. “ The Manhattan County Economic Development team was concerned that Corteva would A new website Corporation. move its operation to another of its global marketing the locations and outside of the region. This region is now live. move secured a long-term solution locally This window to for the company.” the area economic development “Kansas is an agrarian society, an agrarian options is now open community, and it just makes sense…good for the world to see. sense that we would be a part of that.” Corteva Agriscience, senior manager with government and industry affairs, Warren Mayberry says. Corteva officially opened their Wamego location with sixteen full time employees at this time. Corteva is the biggest stand-alone agricultural organization in the world. page 11
2 J O B S B B io-Security Campaign usiness Retention & Business interviews completed: Launched Expansion Program SPS Companies, The Trust Company, Manhattan was recognized The Chamber/GMEP began Manhattan Area Technical College, NBAF, as being a world leader in the its survey process in June CivicPlus, Pepsi-Cola of Manhattan, Ultra- prevention of future pandemics. and has completed 54 meetings with ICE, Evergy, Varney & Associates, Manko major employers to date. The input and This was because of the ground-breaking Window Systems, Olsson Associates, data collected will be summarized in research at Kansas State University Kansas Farm Bureau, Caterpillar (CAT), a Business Conditions Report that will as well as the expected impact of the Dymax, Bayer Construction, KSU be released in early 2021 spotlighting National Bio and Agro-Defense Facility Foundation, Flint Hills Beverage, Sink, the Greater Manhattan area business being constructed on the K-State Our Economic Development team is Gordon & Associates, BHS Construction, climate. Campus. currently collaborating with five businesses KSU-HCS, Manhattan Surgical Center, Trends/themes include: on expansion projects in the Greater Continental Mills, Kansas Dept. of The Greater Manhattan Economic Manhattan area. Agriculture, Custom Wood Products, Partnership with support from NBAF moves closer to being an operational facililty. • Develop innovation culture and N Parker Hannifin, Ascension Via Christi Knowledge Based Economic drive entrepreneurism Hospital, Fort Riley, Champion Teamwear, Development is working with New BAF Hiring Begins: • Increase talent pool for Economic diversification is key to McCall Pattern, Corteva Agriscience, Boston Creative Group on a strategy to About two years ago, manufacturing, healthcare, IT, social Manhattan’s growth and prosperity Florence Corporation, Center for Grain build on this recognition and encourage the U.S. Department of worker, and construction jobs and Animal Health Research, Pawnee the location of new businesses and Agriculture hired the first Our Economic Development team • Partner on programs with Mental Health, K-State Student Union, talented individuals. National Bio and Agro-Defense Facility is currently collaborating with five educational institutions to train Meadowlark Hills, Bank of the Flint (NBAF) employees. In October, close to businesses on expansion projects in the This content-marketing campaign will Hills, KS State Bank, Briggs Auto, students Greater Manhattan area. In the Business build local, national and international 80% of NBAF’s operational workforce City of Manhattan, McCown Gordon had been hired (217/275 personnel). As • Connect veterans and military Retention and Expansion interviews, awareness of the Greater Manhattan Construction, Via Christi Village, Hi-Tech of the end of August, the DHS Science & spouses with job opportunities many businesses indicated they are Region’s expertise in biosecurity Interiors, Capitol Federal, Manhattan Technology Directorate reports they’ve having issues with talent attraction/ research (specifically zoonotic diseases), • Improve local government Christian College, Little Apple Auto spent about 91% of the $1.25 billion retention. We are working with these especially where it overlaps with cooperation to help drive economic Group, Deibel Labs, USD 383, Blueville budget. In 2020, NBAF has participated companies to provide workforce prevention of future pandemics and growth Nursery, Big Lakes Developmental in nearly 100 outreach activities and development resources and support. protection of global food systems. Center, WTC, Covetrus, Alfred Benesch continues to get requests for more. • Create more affordable housing This campaign will supplement and Company, Central National Bank, and and childcare options collateral material for GMEP currently Manhattan Town Center. in production. There has already been a series of national articles published • Net New Jobs: 70 featuring Manhattan in this role: • Active Prospect Pipeline: 28 https://thehill.com/opinion/national- • Industries of Companies: security/489617-future-pandemic- • Animal Health: 5 battles-depend-on-manhattan-kansas • Bio: 3 https://www.forbes.com/sites/ • Agriculture & Food: 4 stephengavazzi/2020/05/20/innovation- • Manufacturing: 7 and-prosperity-amidst-the-covid- • Aerospace: 2 19-pandemic-universities-and-our- economic-future/#3b2a0f5055d1 • Office/Professional Services: 6 • Logistics: 1 Number of Company Visits: 7 page 12 page 13
3 T A L E N T S T RAT EGI ES Highlights: A wealth of initiatives are underway • Enhance the capacity of pre-k to 20 educational to enhance and improve the livability of the Manhattan regional area. institutions Below are projects which will add to the economic base of our community • Increase the number of recent graduates and Fort through attraction/retention of Riley soldiers choosing to remain in Manhattan talent. U The Aggieville business district is undergoing major enhancements that will make for a more • Partner on efforts to improve health outcomes and inviting dining, shopping and entertainment expericence. SD 383/MATC Career develop medical education capacity Academy Concept • Improve the attraction of talent Manhattan-Ogden USD 383 and Manhattan Area Technical College are • Construct and rehabilitate diverse, high-quality advancing a Career Academy concept S that will strengthen capacity for USD and suitable housing 383 and MATC to provide college- and tormont Vail/K-State career-ready preparation and work-based • Provide quality of place environments and Physician Assistant learning in support of regional economic Program Partnership: amenities that enhance community, attract talent development. Stormont Vail signed an agreement across all economic sectors and enhance tourism with Kansas State University to form an academic partnership in the College of Health and Human Sciences’ Physician Assistant Program. Stormont Vail will also develop the Cotton O’Neil Manhattan Medical Campus. A 55,000-square-foot medical office building to be completed M fall 2022 in the K-State Research Park Kansas State University’s will increase public access to medical edical Personnel W Physician Assistant Program will professionals in the Manhattan region. Recruitment graduate health care providers orkforce Kansas State University’s Physician Housing Assistant Program, with its inaugural who provide excellence in The Chamber is working with area class starting Spring 2021, will graduate medical care and serve the local health care providers who provide health care institutions and providers On November 3, Manhattan voters to bolster the region’s ability to attract communities and beyond. passed a ballot measure to adopt a 0.5% excellence in medical care and serve the talent in health care fields. The solutions Economic Recovery and Relief sales local communities and beyond. being developed are directly tailored to tax. The tax is expected to generate a the needs of the community’s providers. total of $65 million over 10 years. Ten percent of the spending will be dedicated to workforce housing, to include a comprehensive strategy to recruit, retain and create housing options for a growing workforce in Manhattan. page 15
3 T A L E N T In September, the Chamber hired a Talent Strategies Coordinator P C romotion of Manhattan onnectivity Jobs and Internships to Fort Riley to drive progress in talent-related strategies. Initiatives include: The Chamber has begun engagement Nearly 1,800 military personnel with over 20 colleges and universities in transition out of service at Fort Riley a four-state area to participate in career each year. Working with transition fairs and communicate with students support resources on-post is the first about job and internship opportunities in step to connecting transitioning soldiers Manhattan. Promotion of Manhattan as to job opportunities that will keep them a great place to work and live will further in the region after their service. support the growth and talent attraction efforts of local busiensses. Drive Northeast Corner.jpg Search in Drive Open with CloudConvert Shared with me Aggieville parking garage presentation renderings New A Files Name My Drive ggieville Shared with me Infrastructure Recent Starred The City of Manhattan is leading an Trash initiative to implement a community- Storage wide vision for the future development 5.8 MB of 15 GB used Northeast Corner.jpg Northeast Corner.jpg Southeast Corner - Banners.jpg of Aggieville as a vibrant, historic, pedestrian-orientated urban district Manage storage that offers diverse shopping, dining, entertainment, and residential opportunities to students, visitors and the broader community. In May 2020, the City Commission approved the new design for 12th street north of Moro street. Construction began in May 2020 and will be completed in early 2021. In May 2020 the City Commission discussed final design options for the parking garage south of Rally House as well as improvements to the streetscape surrounding the garage and a new alley running between the garage and Rally House. Construction is expected to begin in Fall 2020 and will be completed Nearly 1,800 military personnel transition in about a year. Multiple private out of service at Fort Riley each year. developments are underway in the Construction of the Aggieville parking garage broke ground on December 11, 2020 district as well. Get Drive for desktop Download Learn more page 16 page 17
4 E N T R E P R E N E U R S H I P K ST RAT EG I ES K E Y O N G O I N G S PA R K As an -State entrepreneurial Technology-Based AC T I V I T I ES I N C LU D E : E • Create and expand entrepreneurial support Entrepreneurship ecosystem driver, K-State Innovation Partners has a track record of ntrepreneurial systems Ecosystem Spark’s role will commercializing technologies that emerge from the University. Mapping to identify assets, partners, resources, Many incremental advancements with an established market • Formalize pipeline from k-20 be to identify channel go down the licensure path. However, there are and stakeholders in the region as well as roles and functions of all involved. Over 100 meetings with individuals and groups key resources technologies that emerge, not for singular science • Optimize Kansas State University’s representing local, state, and regional entrepreneurial resource advancement and that address a large enough market, that support where building a startup becomes the best option. entrepreneurship programs partners have facilitated this process. The development of a innovation in the K-State Innovation Partners has re-launched its resource database for local entrepreneurs will be one of the efforts to assist in this process. Engagement to P • Create a K-State-affiliated and community outcomes of the mapping process. area, connect these identify these potential technologies viable “center of gravity” offering support mechanisms to rogram resources to one to create a startup is now a focus, done both research passively and actively. Passive engagement another, reduce assess, coach and fund entrepreneurial growth into entrepreneurship community-based includes mining the disclosures that are stakeholders, including Wichita-based CLM Collaborative barriers to entry being processed through K-State Innovation • Create and support community-based coworking, and NXTUS, Zeal Center/StartUp Sioux Falls, and KC-based for entrepreneurs Partners. Active engagement involves Whiteboard2Boardroom and Midwest Angels, in order to build searching out targeted incubator and event spaces and innovators R regional partnerships and learn best practices. areas to find potential esearch and development and identify gaps technology startups. The • Create minority and black-owned business fund targeted areas will align of minority business that require the and assistance programs resources, with the goals of the programming and funding sources. Also developing women in development of community, including animal health and science, biosecurity entrepreneurship networking and educational programming. new programming and food safety, computer science & information technology, Planning additional entrepreneurship networking and crop, grain science and milling, and metal fabrication Highlights: and services. E H educational programming will begin in early 2021. machinery and equipment. In July the Chamber approved and entered into an itchPin: ntrepreneurial All the while, we agreement with The Spark, Inc. Manhattan-based Ecosystem Design will be tracking start-up company, Entrepreneurial Ecosystem Development—Following a Activities: competitive RFP process, in July the Chamber approved and One of the steps to aid in building the region’s entrepreneurial our success and HitchPin, has experienced exponential growth since their entered into an agreement with The Spark, Inc., a local not- ecosystem, was participation in the University Economic late 2018 launch. HitchPin is an app-based technology that telling the stories of for-profit corporation, to provide entrepreneurial ecosystem Development Association’s (UEDA) 2020 Digital Summit. UEDA’s connects farmers who have excess capacity in products or development services and implementation of the Manhattan Summit provided a unique opportunity to bring together 20 entrepreneurship machinery to other farmers who need it. The company’s user entrepreneurship strategy. Deliverables outlined in the key stakeholders in order to explore everyone’s role in the basis has been growing exponentially month after month. successes in the agreement include: entrepreneurial ecosystem, develop a robust network, and They serve an extensive identify gaps and solutions within the ecosystem. This highly region.” addressable market worth • Build organization’s structure and sustainability for the collaborative effort kicked off with the UEDA Summit in September, billions of dollars with the Manhattan Entrepreneurial Ecosystem Sarah Siders, when stakeholders in the ecosystem joined to identify the current categories offered Executive Director, • Centralize resources for entrepreneurs entrepreneurial ecosystem, its opportunities, and challenges. Then on the app. HitchPin places a high priority on being located in SPARK, Inc. the resources within the ecosystem where defined and categorized the heart of ag country, where the worlds’ food, fuel, and fiber • Connect entrepreneurs to resources to identify the strengths and gaps that exist. After the Summit, a is produced. The company started in Manhattan and is growing • Communicate availability of local services and group reconvened to participate in a design-thinking workshop to here, hiring students and alumni from K-State, currently with entrepreneurial successes further dive into the gaps in the ecosystem and identify solutions. 9.5 FTE. • Identify, track and report metrics for the Manhattan The work will continue as solutions are prioritized and deployed in Entrepreneurial Ecosystem the future. page 18 page 19
5 I N N O V A T I O N ST RAT EG I ES Highlights: Long-term projects and aspirations continue to move forward. • Align with and integrate -State’s global food and biosecurity science economic prosperity strategies to grow and diversify the innovation ecosystem throughout the region The Edge Collaboration • Align with Kansas Board of Regents Pillar3 Economic Prosperity Initiative District is where industry, K-State • Leverage research and talent assets to attract outside investment, including company attraction research and the creation of • Evolve real estate strategies adjacent to the K-State campus workforce talent come together to • Continue to expand the capacity and impact of existing K-State and affiliated research and commercialization produce meaningful innovations. K N K ansas State University offering flexibility with Master Research orth Campus Corridor/ BED Partnership Research and Agreements, training faculty through EDGE Collaboration Activities Commercialization tailored workshops, making industry- District In FY 20, K-State had another record focused changes and enhancements to its The North Campus Corridor project In order to create a pipeline of economic year of accomplishment in the pursuit website, and hosting Research Showcase involves city and Kansas State University development prospects and university and receipt of extramural support for the events. Thanks to these targeted efforts resources to enhance the north campus partners, Knowledge Based Economic many innovative programs that contribute and outreach programs, Kansas State area for future economic development. Partnership (KBED) hosts and attends to the local, regional and global knowledge now operates as an effective matchmaker Significant infrastructure construction industry and K-State faculty events. While and innovation ecosystem. Total between university faculty and industry progress has been made along College many of these efforts were forced online, extramural support increased by more professionals. Ave. and at the intersection of College the KBED staff were still able to attend than 15% or more than $26.6 million over The newly merged and renamed, K-State and Kimball Avenues with streetscape, the Plug and Play Launch, present to FY 19. This reflects a remarkable year Innovation Partners, facilitated 72 landscape, and lighting improvements. multiple stakeholder groups, participate of achievement for K-State, especially new invention disclosures and signed Additional phases on Kimball Ave. will in the Kansas Agricultural Summit, in light of nationwide funding and work 33 new license or option agreements continue in 2021. exhibit at Petfood Forum Connect, environment instabilities. Over the last for university-developed technologies host a Researcher Academy, as well as In August 2020, Kansas State University five years, Kansas State University has generating $640,000 in license fees, facilitate numerous industry and faculty and the KSU Foundation announced seen an 80% increase in its number of royalties and legal reimbursements and collaborations. Although COVID-19 a rebranding of the Corridor to the industry-funded research projects. a total of $2.8M in total annual licensing has impacted economic development Edge Collaboration District at K-State. revenue. activities (visits, relocations, expansions, Under its stated vision to become a This rebranding reflects the strategic etc.), the KBED has advanced numerous Top-50 public research university by move beyond a geographical name prospective relationships and currently 2025, K-State has implemented an array to encompass a growing community of initiatives to achieve this objective, Over the last five years, Kansas State of diversified corporate, technical has 12 companies in its pipeline. Many of and a big part of that has been focused University has seen an 80% increase and research partners. The Edge these projects are on hold due to travel restrictions or economic challenges, on building strategic partnerships in its number of industry-funded Collaboration District is where industry, but are anticipated to reengage in the with industry. Several strategies and research projects. K-State research and the creation of future. A list of projects can be found in keys to its success in attracting more workforce talent come together to Appendix D. corporate research funding include produce meaningful innovations and real outcomes for Kansas and beyond, inspired by the university’s land-grant mission. The KSU Foundation continues to develop real estate within the district to support collocation and collaboration. page 21
PART N ER S A N D PA RT NERS H I P S Manhattan’s economic development ecosystem is highly collaborative, as evidenced by the existence of multiple partnerships designed to advance economic prosperity in the area. This section aims to clarify the roles and purposes of the various organizations and partnerships. Partnerships: Partners: G reater Manhattan Economic Partnership (GMEP): GMEP is a regional partnership between the M anhattan Area Chamber of Commerce: The Manhattan Chamber is the community’s lead K -State Family: Multiple University and University-affiliated organizations support economic R iley County: The County provides economic development funding support, develops infrastructure Manhattan Area Chamber of Commerce Manhattan economic development development in the community. that enables economic growth and and the Pottawatomie County Economic agency. In addition to strategies K-State Innovation Partners advances determines zoning and other regulations Development Corporation (PCEDC). implemented through various economic university-based corporate engagement, that impact development. K GMEP serves as the lead marketing development partnerships, the Chamber technology commercialization, ansas Small Business cooperative for the region. leads all non-university-based company technology-based entrepreneurship, Development Center (SBDC): The K attraction, retention and expansion and economic development. The KSU nowledge Based Economic Kansas SBDC serves as the state advising collaborates with the Kansas Department Foundation supports the university’s real Development (KBED): KBED leads resource for small business owners. of Commerce to respond to leads estate strategy to establish facilities for the efforts related to University-based SBDC provides clients with quality, generated by the State. The Chamber collocation and collaboration. Academic company attraction & expansion. KBED’s professional, and personal care in a also leads entrepreneurial ecosystem units support these efforts through mission is to attract, grow, and retain confidential setting, ultimately increasing development strategies and advances research, teaching and service activities. knowledge-based businesses through economic prosperity in Kansas by helping P talent attraction and retention efforts. It partnership, education, outreach, and ottawatomie County Economic entrepreneurs and small business owners also secures and facilitates private sector ecosystem development. KBED was Development Corporation (PCEDC): start and grow their business. support for economic development S conceptualized in May 2008 and the Similar to the Manhattan Chamber’s role initiatives. PARK: Spark is a nonprofit partnership now plays an instrumental in the City of Manhattan, the PCEDC C organization with a vision to connect, role in defining the knowledge-based ity of Manhattan: The City leads parallel efforts in Pottawatomie resource, and successfully launch economic development strategy for the provides economic development County. entrepreneurs and promote a dynamic K Manhattan region. Members include: the incentives, develops infrastructure ansas Department of Commerce: culture of entrepreneurship through Manhattan Area Chamber of Commerce, that enables economic growth and As the state’s lead economic programming and networks designed Kansas State University, K-State determines zoning and other regulations development agency, the Kansas to connect entrepreneurs, startups and Innovation Partners, KSU Foundation, that impact development. Department of Commerce strives to small business owners to each other the City of Manhattan, North Central empower individuals, businesses and and the larger ecosystem in the greater Regional Planning Commission (NCRPC), communities to achieve prosperity in Manhattan area. and Pottawatomie County Economic Kansas by developing relationships Development Corporation (PCEDC). with corporations, site location consultants and stakeholders in Kansas and nationwide. This helps create an environment for existing Kansas businesses to grow and foster an innovative competitive landscape for new businesses. page 23
MANHATTAN AREA CHAMBER of COMMERCE info@manhattan.org CITY of MANHATTAN cityofmhk.com K-STATE INNOVATION PARTNERS innovationpartners@ksu.edu
2020 M A N H A T T A N ECONOMIC DEVELOPMENT A N N U A L R E P O R T A P P E N D I C E S A H I S T O R I C A L I N F O R M AT I O N B 2020 E D OV E R V I E W C INCENTIVES D ACTIVE PROSPECTS
A APPENDIX AP P END IX A : H ISTORI CAL I NFORMAT I ON In November 2012, the voters of Riley County renewed Since 2002, private Advantage Manhattan the half cent sales tax for Roads and Jobs. Through Resolution funding has enabled the economic development efforts of the 082112-E, the City Commission has committed that 65% Manhattan Area Chamber of Commerce. The 2012 Advantage of the proceeds will be available to continue the economic Manhattan “Fuel the Momentum” campaign initiatives played development investment strategy through traditional incentives a significant role cultivating the Manhattan community. For as well as infrastructure projects and 35% for property tax example, the Existing Business program has led to: 300-plus relief through debt reduction. These dollars are essential for visits to existing businesses to provide an opportunity for capitalizing on local strengths including Kansas State University, candid dialogue and any needed intervention to support the NBAF and the Animal Health Corridor. The cash balance of the stability and growth of our existing businesses; four existing Economic Development Fund (including MEDOFAB and RICOED business expansions (CivicPlus, Continental Mills, Florence 2002 and 2012) is approximately $9 million as of July 31, 2020, Manufacturing, and Tallgrass Brewing Company) receiving city and adequate balances have been set aside to meet all the or state economic development assistance totaling over $7.3 current contractual obligations. million and resulting in capital investment of $24.85 million; six new companies (LiveWatch, MediVet Biologics, Neon, US Since the inception of the agreements outlined for Engineering, Vets First Choice, and Xpanxion) locating in the companies presented in the City’s economic development Manhattan; creation of an E-Community program with a funded report, 1,459 net jobs have been created. For every $1 invested $150,000 revolving loan; and an angel investor group to provide in economic development initiatives since 1995, approximately capital to start-ups and early stage companies. $8.89 was leveraged in private sector and other investments. More importantly, since the economic development process was Most recently, in 2017, the Chamber led a private significantly modified in 2002, proceeds from the Roads and fundraising campaign to sustain their economic development Jobs sales tax have leveraged outside investments at a ratio strategies. The Manhattan Area Chamber of Commerce’s fourth of approximately 1:9. If the full anticipated federal government Advantage Manhattan campaign, “Power Our Potential,” is investment of $1.25 billion is factored in, this amount jumps to an aggressive, economic development business expansion $56.92. These figures include the City’s $5 million commitment and attraction program. Advantage Manhattan has input for NBAF, of which approximately $3.4 million has been and support from the private and public sectors within the expensed to-date. Over 20 infrastructure projects have been Manhattan area. The Chamber’s Advantage Manhattan “Power funded through the Economic Development Fund. These Our Potential” initiative was designed to raise necessary funds projects include necessary infrastructure improvements to to develop and implement the Chamber’s increased economic The Manhattan community has a rich history of accommodate the NBAF facility, as well as improvements to development initiatives for the next five years. Over $650,000 activities to advance economic development and the Manhattan Regional Airport, North Campus Corridor, N. in annual private investment to support economic development grow the region. Included is background information on the Manhattan Avenue, and other various roadways. resulted from this campaign. history of economic development initiatives in the community. The City maintains annual services contracts In 2018, Manhattan and the Pottawatomie County Economic CITY OF MANHATTAN: with the Manhattan Area Chamber of Commerce for economic Development Corporation (PCEDC) announced the creation The City of Manhattan has catalyzed economic development development. of the Greater Manhattan Economic Partnership (GMEP). This through both infrastructure development and the administration regional economic development partnership facilitates the of economic development sales tax funds. The Medofab division MANHATTAN AREA CHAMBER cooperation of many stakeholders— private, public and nonprofit of the economic development fund was supported by a .5% city OF COMMERCE: — in the Greater Manhattan, Kansas, area to promote the sales tax that was approved on November 8, 1994 and sunset The Manhattan Area Chamber of Commerce serves as the region’s assets in the U.S. and abroad. on December 31, 1998. The revenue was used to create self- community’s lead economic development agency, including the In late 2019, the Manhattan City Commission approved an sustaining programs and job creation. The RicoEd 2002 was City of Manhattan and Riley County. In addition, the Chamber Extended Service Scope of Work and expanded public funding supported by the city’s portion of a countywide .5% sales tax has also garnered private sector resources to support economic for economic development to support initiatives focused that was approved in November 2002. development efforts. within three strategies grown from the Greater Manhattan Project / Region Reimagined – Economic Diversification, Talent Sustainability and Entrepreneurial Dynamism.
A APPENDIX AP P EN D I X A : H I S TORI CA L I NFORM AT I ON KANSAS STATE UNIVERSITY & Founded in 1942, K-State Innovation Partners (formerly K-State Institute for Commercialization and AFFILLIATES: KSU Research Foundation) is committed to collaborating As the first public land-grant institution, K-State has a with university, industry and communities to deliver a long history of supporting economic prosperity. Economic streamlined mission of corporate engagement, technology engagement is now an established priority for the university as commercialization and economic development. Driven by evidenced by its designation as a major theme (Theme 4) in the innovation, this nationally unique organizational structure K-State Strategic Plan: Vision 2025. Moreover, engagement is serves K-State, community partners and industry in one vital to achieving our goal to be recognized as a top 50 public comprehensive unit. This allows for efficient intellectual research university by 2025. Theme 4 focuses on engagement, property protection, economic opportunities and a consistent extension, outreach and service. For continuous fulfillment of experience for partners. According to the Association of our land-grant mission, the university has been recognized University Technology Managers (AUTM), Innovation Partners by the Carnegie Foundation as engaged locally, statewide and ranks 24th in public universities for license revenue per globally with industry and other organizations to stimulate active license and ranks 35th for total license revenue. The economic growth and prosperity. Many K-State units focus on organization’s client companies have created 587 jobs with an external engagement to create economic growth. In addition, average salary of $56,614, generating $33.2M in annual payroll. voting members included K-State Ventures, the Manhattan outreach and economic engagement are infused throughout Area Chamber of Commerce and K-State Innovation Partners. The KSU Foundation leads the university’s master- the institution within college, department, center and K-State and the City of Manhattan were established as non- planned, commercial office and research developments Since the original Advantage Manhattan campaign programmatic activities. voting members per state statute. Soon after, the K-State adjacent to K-State’s main campus in Manhattan, Kansas. in 2002, Manhattan economic development results include: K-State’s impact can been seen in the results of an The K-State Office Park, K-State Research Park, and the Foundation and the North Central Kansas Community Network economic impact study they completed for the region. In FY proposed K-Labs provide state-of-the-art commercial real were added as members. The Pottawatomie County Economic • Over 2,300 jobs at an average wage over $48,000 2015, $882 million in economic impact was generated by the estate for partners who enhance academics and research on Development Corporation was the latest member, joining as an • $1.4 Billion of Capital Investment Associate. K-State Ventures and the Manhattan Area Chamber university in the three-county region comprising Riley, Geary, campus, contribute industry expertise, promote regional and • Payroll of $120 Million per year and Pottawatomie counties. In addition, $25.2 million in tax international collaborations, access student talent, and align of Commerce have dedicated staff members to execute the revenue to state and local governments was attributed to with the university’s land-grant mission. initiatives and the Board meets bi-monthly. This integrated Total Economic Impact of over $9 Million annually to community economic development program seeks to attract K-State, and K-State employee compensation and expenditures local government entities (school districts, counties and the City In May 2008, the Manhattan Area Chamber of Commerce companies by leveraging the talent, innovation and training support an additional 1,713 jobs in the region. of Manhattan) and K-State Innovation Partners conceptualized a new economic capabilities, and infrastructure available at K-State. KBED’s K-State renewed its commitment to promoting development partnership and engaged additional university Annual impacts of these results include over $36 efforts help increase the number of high-paying jobs, generate innovation and economic prosperity by seeking and receiving and community stakeholders to formalize the partnership. Million in retail sales and $525,000 in new local sales tax new discoveries through university-industry collaborations, the Association of Public and Land-Grant Universities (APLU) Knowledge Based Economic Development (KBED) is a unique revenues. Total property taxes received (City, counties and USD and boost the infrastructure of the region. This initiative is Commission on Economic and Community Engagement partnership of civic, academic and private sector entities 383) total over $6.6 Million. Additionally, since 2002 there have supported by a diverse group of successful regional partner (CECE)’s Innovation and Economic Prosperity (IEP) Universities working together to support new and growing companies in been over 1,100 new homes built in the area. organizations. The KBED partnership plays an instrumental Designation and Awards. This program was created to the Manhattan community and the surrounding region. Original role in defining the economic development strategy for the The annual economic return to the City of Manhattan recognize universities that are leaders in spurring and Manhattan community. Those strategies include the facilitation breaks out as follows: promoting regional economic development. In August 2016, K- of robust private sector/university collaborations, attraction • Direct impact to City = $2.65 Million State President Richard Myers and Vice President for Research and creation of knowledge-based businesses, as well as the Peter Dorhout submitted K-State’s letter of intent to participate development of infrastructure necessary to accommodate a • Indirect impact to City = $1.85 Million in the IEP designation process. K-State submitted a proposal on knowledge-based economy. Total Annual Economic Impact to City = $4.5 Million May 3, 2017, and K-State received notification that the proposal was successful in July 2017.
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