EXHIBIT J: Jefferson EDGE 2020 - RFP NUMBER: 171116 - Jedco
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1 TABLE OF CONTENTS I. History and Purpose of the Jefferson EDGE 2 II. Planning Process and Engagement 3 III. Baseline Assessment 4 Demographic and Economic Data 4 Cluster Analysis 6 CEDS Analysis 10 Status of Previous Economic Development Action Items 14 IV. Strategic Framework 15 Industry Cluster Strategies 15 Cross-Cutting Issues 28 V. Going Forward 34 Appendix A: List of Stakeholder and Elected Official Participants 35 Jefferson Edge 2020: Economic Development Strategy
2 I. HISTORY AND element of the EDGE 2020 was updated and additional action items were PURPOSE OF THE incorporated into the plan. In 2009, when the Jefferson EDGE 2020 JEFFERSON EDGE plan was first developed, Jefferson Parish was still focused on the needs In 2000, the Jefferson Parish Economic of disaster recovery. Several years had Development Commission (JEDCO) passed since Hurricane Katrina made completed a community based 5-year landfall, yet the Parish’s future was very economic development strategic plan, much unclear. Community and business The Jefferson EDGE. It was adopted as leaders wanted the EDGE to encompass the parish’s official plan for guiding its a broader set of issues that were of critical economic growth. In 2004, JEDCO began importance to the future of Jefferson updating the EDGE for an additional Parish: Beautification, Crime Abatement, five years, focusing on physical projects Economic Development, Public Education, as well as policies to generate jobs and Fat City Redevelopment, Flood Protection, economic growth. This process was Hospitals & Health Care, and Insurance. In completed in August 2005; however, less the ensuing years, JEDCO and the parish than a week later, Hurricane Katrina and its have made significant strides in addressing aftermath shifted the needs of the parish. the needs identified in these areas. Parish and business leaders met to craft a business recovery strategy that would In the last several years, there have been be incorporated into the Jefferson EDGE significant shifts in demographic and 2010 plan. economic conditions as local, national, and international markets have changed, In 2008, as the recovery was well underway, and the Parish seeks to respond and the process of updating the EDGE plan adjust accordingly. In this context, JEDCO began once more. The Jefferson EDGE decided that an update to the EDGE 2020 2020 was released in 2009 and included that refocuses efforts on current economic detailed plans for addressing quality of development opportunities was necessary life issues critical to the future of Jefferson to maximize JEDCO’s impact on the Parish. In 2012, after the effects of the Jefferson Parish economy over the next national recession and the BP oil spill five years. were clearer, the economic development August 2015
3 II. PLANNING them of the EDGE plan and the efforts to update the economic development element PROCESS AND and seek feedback. The JEDCO Board reviewed and selected ENGAGEMENT the final list of clusters to target in the plan at their meeting on May 28th. Following that The planning process began with a baseline meeting, a second staff planning session was assessment that reviewed previous EDGE held to begin drafting action items for the plans and collected relevant data on Jefferson clusters and cross-cutting issues, followed by Parish’s demographics, economy, and industry a second round of stakeholder meetings. At clusters. The assessment also examined each stakeholder meeting, the draft framework regional economic development planning and action items were presented. Stakeholders to look for larger trends and alignment provided feedback on the cluster strategies as opportunities. well as the cross-cutting issues outlined in the JEDCO conducted a staff planning session on draft framework. Finally, a public meeting was March 30th, reviewing the baseline assessment held on July 8th to present the draft framework findings and held a Strength Weaknesses for comment. Opportunities Threats (SWOT) analysis of the Additionally, JEDCO conducted visits with parish’s strengths, weaknesses, opportunities, Jefferson Parish Councilmembers to receive and threats. specific feedback on the draft action items. JEDCO formed stakeholder groups focused on four key areas: manufacturing, major The final plan was presented to the JEDCO industries, FIRE (finance, insurance, real estate), Board of Commissioners and adopted by the and municipal and business groups. These board for implementation on July 30, 2015. stakeholder groups met in early May to review the baseline assessment, review and offer feedback on the SWOT analysis from JEDCO staff, and develop preliminary action items. Findings were presented at meetings of the Civic League of East Jefferson, the West Jefferson Civic Coalition, and the Jefferson Chamber Young Professionals group to inform Jefferson EDGE 2020: Economic Development Strategy
4 III. This continues a growth rate that has Population averaged 0.2% between 2010 and 2013. Esri Business Analyst projections show 500,000 a discrepancy in the current population BASELINE of Jefferson Parish, but nonetheless 400,000 they project a similarly flat growth rate 300,000 ASSESSMENT into the future of 0.1% annual growth. 200,000 This population growth is in contrast to A critical component of the planning the region as a whole that continues to 100,000 process for updating the Jefferson grow more rapidly at 1.2%. Esri Business Projected EDGE 2020 economic development 0 Analyst estimates that this growth is strategy was using an initial 11 12 14 15 17 18 10 13 16 19 expected to continue and projects a 20 20 20 20 20 20 20 20 20 20 assessment to base the strategy and 1.3% annual growth rate. This growth Jefferson Parish Orleans Parish recommendations on a foundation of is primarily fueled by Orleans Parish, St. Tammany Parish Other MSA Parishes relevant data and analysis. With the whose population is projected to economic conditions of the Parish Source: 2005-2013, US Census Bureau: ACS; 2014, 2019, exceed that of Jefferson by 2019. having changed significantly since the Esri Business Analyst; 2015-2018 Calculated by GCR, Inc. last EDGE analysis in 2009, this baseline assessment reexamines many indicators Education of economic conditions, as well as the Jefferson Parish has a higher percentage current status of action items developed of residents over the age of 25 with an in original EDGE 2020 and updated in Associate’s degree or higher than the 2012. state overall. This is a positive trend as it DEMOGRAPHIC AND indicates that the workforce is becoming ECONOMIC DATA more skilled and positioned for better jobs in the parish. However, Jefferson This section highlights key demographic is not increasing the number of college and economic indicators. graduates in the population as quickly as Orleans Parish, where 34% of residents over 25 have a bachelor’s degree Population compared to 24% in Jefferson Parish. The US Census Bureau reported that Jefferson Parish had 433,477 residents Source: US Census Bureau ACS 2005-2013 in 2013, a 0.2% increase over 2012. August 2015
5 Household Median Income Household Median Income The median household income in Jefferson $55,000 Parish is higher than the average for both $50,000 the New Orleans Metropolitan Statistical Area (MSA) and Louisiana. Over the past $45,000 five years, household median incomes have The number of $40,000 Projected not grown substantially in Jefferson Parish, people working 2011 2012 2014 2015 2017 2018 2009 2010 2013 2016 2019 following trends at the state and regional level. Household median income in the MSA has also stagnated, while the state averaged a 1.0% in Jefferson Lousisana New Orleans MSA Jefferson Parish annual growth in wages. However, Esri Business Analyst projections indicate annual household Parish has Source: 2005-2013, US Census Bureau: ACS; 2014, 2019, income will increase by between 2.0% and 2.5% each year through 2019. been steady Esri Business Analyst; 2015-2018 Calculated by GCR, Inc. Employment over the last The number of people working in Jefferson five years while Parish has been steady over the last five Unemployment Rate years while employment in the region has employment in 8.0% been slowly increasing from 2009 to 2013. In particular, Orleans and St. Tammany the region has 6.0% Parishes have performed better during this 4.0% period, adding 12,000 and 5,000 people that been slowly 2.0% are employed in the parishes, respectively. Jefferson Parish lost 2,000 employees during increasing from 0.0% 2007 2008 2009 2010 2011 2012 2013 2014 this same period, but continues to employ more people than any of the other parishes in 2009 to 2013. Louisiana Jefferson Parish the MSA. Source: Bureau of Labor Statistics QCEW Unemployment in Jefferson Parish is stable at an average of 6.0% in 2014. This is slightly below the state and national average of 6.4% and 6.1% respectively. Jefferson EDGE 2020: Economic Development Strategy
6 FDIC Deposits Overview: What is a Cluster? FDIC Deposits as % of 2005 Deposits Any bank that is insured by the Federal Reserve Industry clusters are a commonly used tool for 180% must report the deposits that occur at every data analysis in economic development. The 160% one of their branches. In Jefferson Parish, concept was originally developed by Michael 140% FDIC deposits spiked dramatically following Porter at Harvard University in the early 1990s, 120% Katrina, but since then, growth has tapered off and is now a feature of many major economic and reflects the growth of the state. The five development strategies. 100% banks with the highest number of deposits in 80% Because economies cross geographic the parish are concentrated around the larger boundaries, the industry cluster concept 07 11 05 06 08 09 10 12 13 14 business centers in the vicinity of the Metairie 20 20 20 20 20 20 20 20 20 20 was developed to capture the regional Louisiana Jefferson Parish CBD and Elmwood. Nearly a third of the bank concentrations of related businesses. Clusters deposits in the MSA occur in Jefferson Parish comprise many facets of an industry. For and about half are in Orleans Parish. Source: Federal Deposit Insurance Corporation: SOD example, a health services cluster contains Tax Collections not just doctors’ offices and hospitals, but the educational institutions that train nurses There has been steady growth in revenues and laboratory researchers, the suppliers of within the parish over the last five years. Sales medical equipment, and even the food and tax revenue continues to bring in about half as laundry services purchased or provided by Jefferson Parish Tax Revenue (in much revenue as ad valorem (property) taxes inpatient institutions. Examining employment thousands) and the two revenue sources increased at concentrations across clusters, rather than $800,000 roughly the same rate between 2009 and 2013. just looking at major employers, allows for a $600,000 comprehensive view at the unique economic $400,000 strengths of a region or area. $200,000 CLUSTER ANALYSIS Figure A shows some nationally prominent $0 industry clusters, from the US Cluster Mapping This section examines the Jefferson Parish 2009 2010 2011 2012 2013 Project (www.clustermapping.us). economy through the lens of industry clusters, Ad Valorem Sales showing which groupings of industries provide Clusters can also be divided into two types: the most employment in the parish and are traded and local. Whether a cluster is traded Source: JEDCO Annual Report 2013 projected to grow over the next ten years. or local depends on the customers. Traded clusters primarily serve external markets and customers; the clusters in the national map above are all traded clusters. Because the August 2015
7 customers are external to the region, traded clusters make regions more competitive and dynamic by bringing in additional capital to a Figure A: A Sample of Prominent Industry Clusters in the US region. Local clusters primarily serve local markets; the set of local clusters is the same in every region. Local clusters include the types of industries and companies that every region needs: doctors, elementary schools, grocery stores, real estate, and more. At the national level, 36% of jobs are in traded clusters, while 64% of jobs are in local clusters. Local clusters are major employers in every region in the country, and Jefferson Parish is no exception. Local clusters are 72% of jobs in Jefferson Parish, while traded clusters are 28% of jobs – a stronger concentration of local jobs than at the national level. Traded Clusters Because traded clusters are critical to the growth of the economy as a whole, looking at the major clusters by the number of jobs, as well as their projected employment growth or decline, offers a snapshot into the major industry strengths of Jefferson Parish. Business Services is the major employer in Source: US Cluster Mapping Project Jefferson Parish. This is a broad category, includes businesses and jobs like engineers, architects, computer programmers, management consultants, and other professional services. The cluster also includes businesses like executive search services, Jefferson EDGE 2020: Economic Development Strategy
8 telemarketing bureaus, payroll services, thousands of people, they are not all projected limousine services, and other businesses that to grow over the next decade. Water exclusively serve other businesses. Transportation, one of Jefferson’s most specialized clusters, is expected to lose Distribution and Electronic Commerce is fully one third of its jobs, as is Oil & Gas another major employer in Jefferson. This Production and Transportation. These are cluster is comprised mainly of wholesale major losses that would have significant ripples distributors. Water Transportation includes throughout the economy, especially given the both the actual transporting of goods via barge high average wages in these industry clusters. or other waterborne vessel, but also ship and boat building and repair, the major source of jobs in this cluster in Jefferson Parish. The Transportation & Logistics cluster rounds out other modes of freight, like air, rail, and truck. LOCAL CLUSTERS Source: US Cluster Mapping Project’s Jefferson Parish Data While many of these traded clusters employ A look at the local clusters similarly shows trends in the industries that comprise the Table 1: Jefferson Parish Top Ten Traded Clusters by Employment majority of employment in Jefferson Parish. Current Local Health Services is the largest cluster, Projected either traded or local, in Jefferson Parish. Wages, Projected Growth Cluster 2014 Jobs Salaries, & % Growth This is owing to the major presence of Ochsner 2015- Proprietor 2015-2024 as well as East Jefferson and West Jefferson 2024 Earnings Medical Centers. This local cluster also has one Business Services 10,795 $69,997 2448 22% of the highest average wages. Distribution & Electronic Commerce 10,021 $66,421 161 2% Hospitality and Tourism 4,427 $59,949 -580 -14% The second largest cluster, Local Hospitality, Water Transportation 4,223 $69,472 -1297 -33% employs nearly 20,000 people but the average wage is very low at around $16,000 Insurance Services 2,861 $78,064 -290 -11% – the lowest average wage of any cluster. Construction Products & Services 2,607 $64,330 -73 -3% Similarly, local retail employs over 10,000 Transportation & Logistics 2,028 $44,914 172 9% people but at very low wages, around $17,000. Oil & Gas Production & Transportation 1,745 $107,768 -550 -34% Food Processing & Manufacturing 1,425 $43,362 33 2% Across the board, local cluster average wages Financial Services 1,290 $58,205 264 20% are lower than traded cluster average wages. However, a few industries like Financial Source: EMSI August 2015
9 Table 2: Local Clusters in Jefferson Parish • Water and sewer line construction 2012 2012 Average • Industrial building construction, and Local Cluster other professional and scientific Employment Wages Local Health Services 28,229 $50,113 services. Local Hospitality 19,142 $16,026 This industry cluster has been a focus post- Local Real Estate, Construction, and Development 16,679 $47,221 Katrina and was defined through case-making Local Commercial Services 15,593 $37,210 research from Deloitte that was commissioned Local Retail 10,650 $17,031 by Greater New Orleans, Inc. (GNO Inc). Water Management has also been the focus Local Food and Beverage Processing and Distribution 7,540 $29,757 of multiple regional and state plans, including Local Motor Vehicle Products and Services 6,571 $39,263 the Greater New Orleans Urban Water Plan Local Financial Services 5,826 $51,096 and the state’s Coastal Master Plan. Both of Local Community and Civic Organizations 5,788 $20,149 these plans would provide tens of billions in Local Personal Services (non-medical) 3,903 $23,922 economic impact for the region if they were Local Logistical Services 3,485 $39,150 to be fully funded and implemented. The cluster is also one of five areas of special Local Entertainment and Media 2,626 $22,311 consideration for economic resilience in the Local Household Goods and Services 2,268 $28,280 Comprehensive Economic Development Local Utilities 2,161 $61,823 Strategy (CEDS) prepared by the New Orleans Local Education and Training 2,121 $28,329 Regional Planning Commission (RPC) and Local Industrial Products and Services 627 $44,406 discussed in the next section of this memo. The Data Center has also conducted some Source: US Cluster Mapping Project research in this cluster, showing projected job Services and Utilities are in similar ranges as major industries or subclusters are: growth of over 7,500 new jobs in the region traded cluster wages. This could be because through 2020. Many of those jobs share skills • Engineering Services and projects with other clusters in our region, financial services institutions often have both local and external customers. • Fabricated pipe manufacturing like Energy and Petrochemical, Construction, and Engineering. Water Management: A Special Case • Heavy and civil engineering construction Water Management in Jefferson Parish is A special cluster that comprises elements of already a prominent cluster. Below are some multiple traded clusters is Water Management, • Power and communication line highlights of the cluster’s current performance a strong specialization for both Jefferson Parish construction using EMSI data: and the greater New Orleans region. The Jefferson EDGE 2020: Economic Development Strategy
10 • Over 10,165 jobs in 2015 There are also significant overlaps Tammany. The CEDS also includes between local and traded clusters. analysis for all seven parishes within the • Employment is projected to grow Food and Beverage Processing and Metropolitan Statistical Area (MSA) which 16% to 11,751 by 2024 Manufacturing industries have both has the previous five parishes, plus St. • Average wage of $72,867 local and external customers, as do Charles and St. John the Baptist parishes. Transportation & Logistics and Finance & All EDA applications must reference how • The largest subcluster is Insurance. The presence of these clusters their project fits with the relevant CEDS. Engineering Services, with nearly in both categories, traded and local, Other relevant features of the CEDS 3,000 jobs indicates strong assets and workforce that include: should be leveraged to grow the Jefferson • Last updated for 2014-2018 When examined this way, Water Parish economy. Management is the second-largest traded • Used for regional-local alignment cluster in Jefferson Parish. for any EDA application by JEDCO Summary of Analysis CEDS ANALYSIS • Any project by applicants for EDA funding must reference their fit in To ensure that JEDCO’s economic the CEDS Jefferson has strong traded clusters, but development strategy is aligned many of the strongest specializations with regional priorities, this baseline The CEDS uses a vision and a set of goals are facing projected job losses, showing assessment examines the region’s to frame the five year plan. For the 2014- that retention of these employers will economic development planning. JEDCO 2018 edition, those included: be critical. Other clusters are projected participates in regional planning efforts, to grow slowly, but relative to stable and this update to the EDGE plan will seek VISION: “Greater New Orleans will be a population growth, slow job growth is less to further align the organization’s activities thriving, resilient, sustainable, prosperous of a cause for concern. with regional trends and priorities. and equitable region” The parish’s strong local clusters, The U.S. Economic Development GOALS: particularly health services, have the Administration (EDA) requires routine potential to strengthen the economy in 1. Achieve economic growth updates to an Economic Development the same way as traded clusters by finding District’s (EDD) five-year Comprehensive 2. Leverage workforce needs to upgrade external customers. Medical tourism is a region’s growth Economic Development Strategy (CEDS). strategy that has worked well for other The New Orleans Regional Planning 3. Improve economic equity regions with specialized care facilities Commission (RPC) is the designated 4. Enhance the global competitiveness of and is already a focus of Ochsner. Other EDD which only includes five parishes the region strategies for local clusters may be comprising the RPC: Jefferson, Orleans, 5. Develop the region’s infrastructure similarly effective. Plaquemines, St. Bernard, and St. 6. Promote regional collaboration August 2015
11 Each of these goals has a several objectives Table 3: Summary of Jefferson Parish Priority Projects and an associated performance measure to track progress over time. Plan of Action: Priority Projects for Jefferson Parish Only Regional Priorities Plan of Action • Delgado, Avondale Campus Included in the CEDS is a Plan of Action that Part of “Facilities with a Purpose” to create an Advanced Manu- includes the following regional priorities: Aerospace & Advanced facturing Center of Excellence by renovating and expanding an Manufacturing existing facility which will respond to the demands of business and 1. Workforce Development industry for a skilled workforce. The Center will create a sustainable long term solution to critical workforce shortages and provide a 2. Leverage Strength within the pipeline of skilled workers Region • Cluster analysis for City of Kenner Capacity Building 3. Maintain & Repurpose Assets To examine potential to build strengths in a particular industry or industries 4. Develop Innovation • Delgado, Advanced Technology 5. Enhance Infrastructure for One “Facilities with a Purpose” building , the Advanced Technolo- Energy Production, gy Building and campus expansion will serve the needs of the oil, Economic Development Petrochemical & Plastics gas and chemical industry workforce needs with instrumentation, 6. Improve Quality of Life chemical technician, engineering and deep water oil production programs The Plan of Action also includes many priority projects and identified as action for one or • Redeveloping Fat City a few parishes or for all parishes. Table 3 • Fairfield: Planning & Development of the Fairfield area of the highlights the priorities specifically identified Enhancing Quality of Life Westbank of the Mississippi River in Jefferson Parish for Jefferson Parish. • Industrial Corridor Revitalization: Reuse/Redevelopment of indus- trial corridors including the Harvey Canal and Huntington-Ingalls shipyard and in Old Jefferson Entrepreneurial & Small • Churchill Technology & Business Park Business Support Expansion of entrepreneurial support activities Green & Environmental • Establishment of a wetlands mitigation bank(s) Technology Wetlands mitigation and drainage solutions are critical to the sus- tainability of our coastal region. Jefferson EDGE 2020: Economic Development Strategy
12 Regional Cluster Analysis Findings • Delgado, Blair Campus Higher Education A campus renovation and expansion will provide a state-of-the-art Similar to the cluster analysis described and classroom and laboratory facility in Metairie conducted in this baseline assessment, the CEDS contains an analysis of traded and local • Delgado, River City Campus clusters for the region. A summary of these One “Facilities with a Purpose” building, the River City Campus, clusters is provided in Table 4. The Location will be located in the Churchill Technology & Business Park. The Quotient (LQ) shown in this table is a relative campus will accommodate training programs to support commerce along the Mississippi River to include transportation/logistics, mar- measure of the number of jobs in that clusters International Trade & itime, marine engine, engineering and automotive technology in within the New Orleans region compared to Logistics the growth area of West Jefferson. the number of jobs in that cluster nationally. • Expansion of Warehousing & Distribution A LQ of 1 indicates a greater proportion of The Huey P Long Bridge improvements have opened up portions jobs in the region and is considered a regional of the West Bank of Jefferson Parish as ideal locations for ware- strength with economic benefits. The clusters housing and distribution uses, leveraging and expanding the pre- dominately developed Elmwood area which is already a warehous- are grouped by Regional Specialties (LQ > ing and distribution hub 1.3), Regional Strengths (LQ = 1 to 1.3) and potentially strong Clusters (LQ = 0.5 to 1.0). For • Churchill Technology & Business Park reference, the cluster’s rank by number of jobs Regional Economic Infrastructure Improvements to enable the Phase II expansion of in Jefferson Parish alone is also included. Development Districts the Business Park • Enhancement of Rivertown Enhancements to the Rivertown district in the City of Kenner, in- cluding LaSalle’s Landing pier and venue for outdoor retail events, to attract tourists and adjacent properties such as the Old Kenner High School • Development of Laketown Tourism Enhancements to the existing conference center and surrounding properties and the addition of mixed-use developments to en- hance the conference center as a tourism destination. • Westwego Riverboat Landing Improvements to the landing and/or adjacent infrastructure to sup- port use the landing for a river boat cruise line Source: Comprehensive Economic Development Strategy: Priority Projects Memo, September 2014 August 2015
13 Table 4: Traded Clusters in the New Orleans MSA Additionally, Nascent Clusters, shown in the table below, demonstrate promising activity Location whether from strong companies, growing Rank in Cluster Quotient momentum, or underutilized local assets (e.g. Jefferson (LQ) Michoud and Avondale). Water Transportation 10.4 4 Table 5: Nascent Regional Traded Clusters Upstream Chemical Products 4.9 - Location Oil & Gas Production & Transportation 3.8 8 Cluster Quotient (LQ) Specialties Fishing & Fishing Products 2.9 - Aerospace Vehicles & 0.20 Video Production and Distribution 2.4 - Defense Construction Products & Services 1.8 6 Information Technology & 0.18 Analytical Instruments Hospitality & Tourism 1.8 3 Biopharmaceuticals 0.04 Performing Arts 1.5 - Source: Comprehensive Economic Development Strategy Environmental Services 1.4 - for the New Orleans Region, 2014 Education & Knowledge Creation 1.2 - Strengths Vulcanized & Fired Material 1.2 - Emerging Clusters, shown in the table below, Jewelry & Precious Metals 1.0 - do not yet exist or fit cluster methodology, yet present promise. Distribution & Electronic Commerce 1.0 2 Leather & Related Products 1.0 - Table 6: Emergent Regional Traded Clusters Food Processing & Manufacturing 1.0 9 Cluster Business Services 0.9 1 Potentially Strong Emerging Environmental, Sustainable Industries Transportation & Logistics 0.7 7 Disaster Response & Resiliency Music & Sound Recording 0.7 - Coastal Restoration Insurance Services 0.7 5 Water Management Financial Services 0.6 10 Bio-Medical or Bio-Sciences Downstream Chemical Products 0.6 - Advanced Manufacturing Downstream Metal Products 0.6 - Digital Media Lighting & Electrical Equipment 0.5 - International Trade Source: Comprehensive Economic Development Strategy Source: Comprehensive Economic Development Strategy for the New Orleans Region, 2014 for the New Orleans Region, 2014 Jefferson EDGE 2020: Economic Development Strategy
14 STATUS OF PREVIOUS being leased to private operators, a ECONOMIC DEVELOPMENT development that was not anticipated ACTION ITEMS in 2012 The previously developed EDGE 2020 plan was Certain action items dealt with topics or released in May 2009. This plan had 19 action projects that are still of concern today, items in the economic development focus area. including: An update to the plan, released in 2012, added • The development of the Fairfield area an additional five items for a total of 24 action and Churchill Park items in economic development. • Workforce development in Jefferson The action items had a wide range of topics, Parish many of which included infrastructure or other special projects. Since 2012, the national and • Business retention and expansion regional economic landscape has shifted • State tax credits for the film industry significantly, especially in the following areas: • The reuse of Avondale Shipyard • Oil Prices – crude has dropped significantly, while natural gas • Support for entrepreneurs and small fluctuations have led to a boom businesses in facilities that use LNG as a manufacturing input • State Budget – continued challenges with the state’s budget have affected higher education and health care • Transportation Priorities – earlier action items identified specific projects as priorities, and those are no longer aligned with current community concerns and planned improvements • Medical Facilities – East Jefferson General Hospital and West Jefferson Medical Center are in the process of August 2015
15 IV. STRATEGIC FRAMEWORK The target clusters are: • Food, Beverage, Fishing and Seafood • Water Transportation, Distribution and The strategy framework is divided into Logistics two categories. The first, Industry Cluster Strategies, is the original intention of this • Health Care plan update – to target and prioritize industry clusters for growth in Jefferson Parish. The • IT Systems and Products second category is Cross-Cutting Issues, • Water, Coastal, and Environmental derived from staff and stakeholder feedback, Industries which identified a need to tackle broader issues that affected multiple clusters. INDUSTRY CLUSTER STRATEGIES The industry clusters identified in this section were identified through the planning process with JEDCO board and stakeholders as the greatest opportunity for growth in strategic areas of interest and strength in coordination with regional efforts. While a cluster based approach targets needs of those industries, it does not exclude any industries or businesses from JEDCO’s overall support services, but provides a basis for targeting limited resources for maximizing long term impact. Jefferson EDGE 2020: Economic Development Strategy
16 Industry Clusters 1. Food, Beverage, 2. Water Transportation, Fishing & Seafood Distribution & Logistics • Food manufacturing • Freight rail transportation • Commercial fishing operations • Warehousing • Seafood processors • Wholesalers • Fishing products, such as nets, • Trucking lines, reels, or processing • Airport and air cargo equipment like conveyors or • Water transportation peeling systems • Ship, boat, and barge building • Beverage manufacturing and and maintenance bottling, including breweries, • Logistics and freight forwarding distilleries, and bottling plants • Customs brokerages 5. Water, Coastal, & 3. Health Care Environmental Industries • Hospitals • Engineering and construction • Doctors’ offices firms that work in coastal • Medical suppliers environments • Service providers or • Stormwater planning and contractors for hospitals water quality management • Training providers and • Materials providers (pipeline educational institutions fabricators, etc.) • Hotels that support destination • Dredging health care • Waste management 4. IT Systems & Products • Any other companies that can profitably solve environmental • Businesses that develop, sell, or challenges train on software and other information technology products August 2015
17 Food, Beverage, Fishing, and Seafood This cluster includes the following types of Louisiana, and especially the New Orleans prowess; the beer scene in the region has businesses: region, is known for its delicious and unique been an economic driver as well as a quality cuisine and food products. Jefferson Parish’s of life signal, attracting sought-after young • Food manufacturing – including business case for this cluster is strong: utilities professionals and millennials. prominent Jefferson businesses like and water are less expensive, and the parish Zatarain’s, Magic Seasonings, Kajun has a larger capacity to produce food products Jefferson’s fishermen and seafood producers Kettle, MMI Culinary and more in places like the Elmwood area. Jefferson also have struggled with the effects of numerous has tremendous proximity to supply chains, hurricanes and the BP oil spill. Connecting • Commercial fishing operations these valued businesses to regional retailers from goods moving in and out of the Port of • Seafood processors New Orleans to agricultural products grown and wholesalers, as well as direct-to-consumer in parishes further west, like rice, sugarcane, models like a fresh catch market, will increase • Fishing products, such as nets, lines, the opportunities for Jefferson quality seafood bananas, sweet potatoes, and more. reels, or processing equipment like to reach customers. conveyors or peeling systems The potential to continue to grow food, • Beverage manufacturing and bottling, beverage, and seafood businesses in Jefferson including breweries, distilleries, and is significant. This industry offers opportunities bottling plants to scale, easier access to external markets, and with the right infrastructure, lower costs to enter. One area where Jefferson can begin to compete is in brewing and distilling. This industry has been a major growth area in places like Colorado and Michigan. Breweries often start small and rapidly expand, building tap rooms where customers can taste and purchase beer on site. For example, Founders Brewing in Grand Rapids, Michigan, began in 1997 and now employs over 225 people and brews over 200,000 barrels a year; they just embarked on another $40 million expansion to double capacity at their brewery. Grand Rapids heavily markets its beer-making Jefferson EDGE 2020: Economic Development Strategy
18 Action Item Details Lead & Partners Timeline Develop comprehensive Incorporate into annual JEDCO, Port of New database of existing firms, Utilize products moving in and out of the Port of New Orleans; connect to local strategic operating plan as 1 Orleans, LSU AgCenter, supplier and production needs, distribution and logistics companies to reach external markets a retention and expansion others TBD and target customers strategy Target marketing to promote Use Jefferson’s existing strengths in this cluster to promote the parish as a Incorporate into annual 2 existing companies in this destination for food, beverage, and seafood businesses; link local producers to JEDCO strategic operating plan as a cluster wholesalers and retailers like Sam’s Club, Rouse’s Markets, or Associated Grocers marketing strategy An untapped market niche, brewing and distilling are growing in other parts JEDCO, Jefferson Identify a champion and Advocate for new regulations of the region and country. Find and develop model zoning and legislation to Department of model legislation; use staff 3 permitting breweries and support these businesses. New Orleans and St. Tammany offer examples in our Planning, Parish time to shepherd through the distilleries region of areas that have developed the regulatory scheme to permit these Council approval process businesses. Short-term; utilize internal Re-brand existing JEDCO Market JEDCO’s small business financing products to entrepreneurs or other new JEDCO, financing 4 marketing staff and finance financial products for this cluster entrants to the food, beverage, and seafood cluster partners team Work with developers to identify and target commercial As part of larger conversations with developers about the need for changes in JEDCO; development building stock needed in this Jefferson’s building stock, use business intelligence to communicate market 5 partners; real estate Short to medium term cluster, such as culinary space, needs to developers; a commissary kitchen model shows promise in Gretna, for partners cold storage, or other specific example facilities JEDCO; potential Explore supply chain strategies to connect producers to consumers, and identify partners include LSU Develop partnerships, needed transportation or processing links that can be provided in Jefferson. A Ag Center, Louisiana 6 particularly around local fresh catch market in Bucktown could also complement the Westwego Fisheries Medium to long term Restaurant Association, seafood, to promote producers market and provide access on both sides of the river. and the Urban Conservancy August 2015
19 Water Transportation, Distribution & Logistics This cluster includes the following types of The water transportation industry, as well as businesses: the general industry cluster of trade, logistics, and transportation, is a foundational industry • Freight rail transportation cluster in Jefferson Parish and the region. • Warehousing Jefferson Parish’s hard assets, including the Harvey Canal, interstate highways, Mississippi • Wholesalers River, multiple Class 1 railroads, and Louis • Trucking Armstrong International Airport, combine for a multi-modal location unrivaled in the Gulf • Airport and air cargo South. In particular, water transportation – both • Water transportation the transporting of goods on water as well as the building and maintenance of water-based • Ship, boat, and barge building and vessels – is a highly specialized traded industry maintenance cluster with high average wages. • Logistics and freight forwarding • Customs brokerages Jefferson EDGE 2020: Economic Development Strategy
20 Action Item Details Lead & Partners Timeline JEDCO; HCIA and Facilitate networking events Provide a platform for companies to connect to discuss critical business 7 other business Short to medium term for companies in this cluster issues, workforce needs, supply chains, and more groups can assist The airport is conducting a demand analysis of general aviation and Assist in implementing any JEDCO, City cargo for the southside property, looking at activity from current tenants future redevelopment/ of Kenner, 8 as well as land uses in airports of similar markets. JEDCO can push to Medium term re-use strategy for Airport Regional Planning maximize the potential of the site, as well as assist with marketing and properties on south side Commission tenant search/selection. Medium to long term; Identify priority needs major funding will be Monitor the Rail Gateway study to assess the impact on Jefferson; JEDCO, Regional for major infrastructure needed for upgrades, but freight rail access on the Westbank could continue to adversely affect Planning 9 improvements, including the work of identifying the travel times through the region. Determine the future needs of the Commission, HCIA, freight rail and the Harvey highest priority needs can Harvey Canal. Public Belt Railroad Canal be done with a smaller study or staff resources Hopefully, short term; JEDCO, GNO realistically, this could Continue discussions with the Port of New Orleans about possible trade Identify a new use for the Inc., Port of New take several more years 10 and value-added manufacturing uses for the Avondale site; listing the Avondale Shipyard site Orleans; Huntington to identify and implement property with a broker shows promise as well Ingalls owns the site a use for the site’s full potential Use mapping tools to Natural gas infrastructure could potentially generate future industrial promote the potential activity; balancing this with residential needs is a long-term task. 11 role of natural gas in JEDCO, LED Long term LED offers significant gas mapping resources for marketing and site the economic future of selection purposes that are available for JEDCO to use by request. Jefferson Parish Link transportation to the food and beverage industry Identify and prioritize transportation and logistics needs like cold 12 JEDCO Medium term through specialized logistics storage and freight that can also grow the food and beverage industry businesses Use business retention visits Push businesses to be specific about their workforce and training needs; Short term; add to 13 to identify training and communicate these needs to workforce developers and educational JEDCO standard retention visit other workforce needs institutions practices August 2015
21 Health Care This cluster includes the following types of Health services is the largest employer in businesses: Jefferson Parish and provides high average wages. The industry is facing major shifts in • Hospitals: Ochsner, East Jefferson the parish – with private operators leasing General Hospital, West Jefferson parish hospitals, the funding changes from Medical Center, Tulane Lakeside, the Affordable Care Act still filtering through Louisiana Children’s Medical Center the system, and the growth of private systems (LCMC) like Ochsner and LCMC, Jefferson’s medical • Doctors’ offices landscape is radically different than it was just a few years ago. Additionally, the opening of • Medical suppliers two new medical centers in downtown New Orleans – University Medical Center and the • Service providers or contractors for new VA Hospital – will add hundreds of beds to hospitals the regional capacity, and in new state-of-the- • Training providers and educational art buildings. institutions These changes mean that the parish must address workforce development, regionally integrated marketing, and supporting destination health care (“medical tourism”) to support continued growth in Jefferson facilities. These actions will increase the viability of Jefferson’s health care institutions by increasing their ability to attract and serve patients from all over the world, as well as employ Jefferson residents who are seeking careers in health care. Jefferson EDGE 2020: Economic Development Strategy
22 Action Item Details Lead & Partners Timeline Improve career ladders Identify and bolster career ladders, moving people from entry level to JEDCO, Jefferson Parish and links to the workforce middle-skill jobs, using partnerships with the workforce development WIB, Delgado Community Short to 14 development system so system, employers, and training organizations; work with schools like College, Kenner Discovery medium term that Jefferson residents can Kenner Discovery Health Sciences Academy as it expands to high H.S.A., Hospital partners access jobs in health care school levels to promote and develop career paths for students Medium to long Address shortfalls in the Promote and incentivize, if necessary, hospitality development in JEDCO, development term; private hospitality industry that corridors like Jefferson Highway; promote quality transit links to the partners, Regional funds for hotel development, 15 affect health care industry airport and throughout Jefferson for medical tourists and employees; Planning Commission (for public and grant growth, including hotels and examine the eastbound down ramp from Earhart to Deckbar as a infrastructure pieces), JeT funding for transit transportation priority infrastructure project and RTA (for transit piece) improvements and road infrastructure Work with Ochsner Continue the partnership with Ochsner and Urban Land Institute; to capitalize on the JEDCO, Parish Council, address needs for hospitality and other services in the corridor; push transformative possibilities Parish Planning, Ochsner, Short to 16 for zoning that maximizes the potential of mixed-use and residential in the Jefferson Highway Urban Land Institute, medium term development; work with the Feil organization to redevelop the corridor, including mixed- development partners Jefferson Plaza site by facilitating discussions on highest and best use use walkable developments Promote and encourage the Support efforts by Rep. Patrick Connick and West Jefferson Medical revitalization of the Hope Center to redevelop the historic Hope Haven campus, in partnership West Jefferson Medical Haven campus as a catalytic with the Archdiocese and other partners, as a community that can Center, Jefferson Chamber, 17 Long term development for the West provide multiple types of amenities that address community needs, JEDCO, financial and Bank that can address such as assisted living, Alzheimers care, or other needs that can be development partners community health needs identified through a master planning process JEDCO, GNO Inc., Develop alignment around NOLABA, Regional Planning a coordinated brand Work with regional partners to promote and market the medical assets 18 Commission, Jefferson and Short term for the region’s medical on a regional basis, rather than just downtown New Orleans New Orleans CVB, Medical infrastructure partners Explore the opportunity for employer-assisted Find best practices and work with employers like Ochsner who are JEDCO, Ochsner, other 19 housing or tax incentives interested in encouraging additional residential development near their Medium term partners TBD to encourage residential facilities development near hospitals August 2015
23 IT Systems and Products This cluster includes businesses that develop, existing industries and are a more mature part sell, or train on software and other information of the industry. Jefferson’s largest employers technology products. This cluster, while a are in engineering, health care, construction, targeted industry in many, if not most, regions water transportation, and other industries with across the country, has several strong and significant needs. By tying this plan’s targeted growing firms in Jefferson Parish, like Geocent, clusters together with information technology, 365 Connect, ReadSoft and Prytania. the IT industry can be the connective tissue that helps all Jefferson businesses prosper. Information technology and information systems are a part of every industry and business around the globe; there is not just one kind of IT company. Thus, part of this strategy is to determine what types of IT hold the most promise for Jefferson’s future. Much is made nationally of the companies that started in a garage, like Microsoft or Apple, or tech startups that go from an idea to a billion dollar valuation in a few months. However, the market is crowded for co- working spaces, IT hubs, or other ideas aimed at young coders with big ideas – every city in the country is trying to attract these people with downtown investments, and Jefferson is a developed suburban parish. For those types of entrepreneurs, the warehouse district in New Orleans will be a more enticing setting than a Metairie office. The key, then, is a two- pronged strategy of offering more choices in the parish’s built environment – a benefit to employees who might choose a job offer with a Jefferson firm if they could walk to lunch or to run errands – as well as targeting IT companies that fit right into Jefferson’s Jefferson EDGE 2020: Economic Development Strategy
24 Action Item Details Lead & Partners Timeline Develop a Jefferson- Jefferson’s strong IT employers should lead a group focused on based IT industry group to JEDCO, industry 20 building the inputs needed to grow IT’s presence in the parish Short to medium term advocate for state and local partners policies Advocate for continued IT companies often hire workers who want downtown or similar JEDCO, industry development of more Short term for locations; Jefferson has areas that could be developed further to partners, Jefferson 21 walkable hubs necessary to advocacy, long term for provide these types of environments, such as Rivertown, Fat City, Old Chamber, developer attract workforce and retain implementation Gretna, or Jefferson Highway partners companies Jefferson’s strengths in IT align with their other industry presences: Target specific kinds of IT engineering, military, security, and other B2B software – targeting Short term; add to 22 companies or products that these types of companies, rather than flashier startups, will be a more JEDCO strategic operating plan align with industry targets successful strategy; these types of companies also often look for Class B office space in more suburban locations Undergraduate students at Louisiana universities already participate in Organize “hack-a-thons” to JEDCO, industry these types of events, where they develop products in a very short (48 23 tackle IT needs of Jefferson partners, business Short to medium term hours or less) timeframe to solve a specific business challenge – bring industry cluster targets groups these models to Jefferson and work with Jefferson firms Promote high-speed fiber JEDCO, industry 24 development in Jefferson Identify barriers to high-speed fiber development Medium term partners Parish August 2015
25 Water, Coastal, and Environmental Industries This industry includes the following kinds of This industry has been the result of tremendous businesses: regional planning and development activity that came out of a realization post-Katrina that • Engineering and construction firms Louisiana can and must be a leader in water that work in coastal environments management and coastal restoration. These • Stormwater planning and water quality coordinated efforts between government, management industry, and philanthropic leaders has resulted in several landmark plans that plan • Materials providers (pipeline and program billions of dollars of projects and fabricators, etc.) investments to rebuild the coast and help our cities live with water: the state’s Coastal Master • Dredging Plan and the Greater New Orleans Urban • Waste management Water Plan. Now, with the prospect of funding from the RESTORE Act and the settlement • Any other companies that can with BP after the 2010 oil spill, this industry is profitably solve environmental ready to grow locally, and for the best reason challenges – rebuilding the coastal defenses that protect our region and make it more resilient. There is no better time to focus on the catalytic opportunities afforded Jefferson by this confluence of events. The region’s economic development leadership is aligned around this industry as a significant strength, and Jefferson’s base of existing companies are well- placed to participate in the work that will take place over the next decade and beyond. Jefferson EDGE 2020: Economic Development Strategy
26 Action Item Details Lead & Partners Timeline Identify existing firms and workforce skills that already Use retention visits and other meetings to determine which Jefferson Short term; add to 25 align with or can convert to JEDCO firms can work in this industry, and assist them with market identification strategic operating plan this cluster Develop a concise brand for this industry cluster in This industry is called Sustainable Industries by NOLABA and Emerging JEDCO, GNO 26 alignment with regional Environmental by GNO Inc. – develop a brand for this industry cluster Inc., other regional Short term marketing that aligns with these regional efforts partners Prepare for RESTORE Act Determine timeline and opportunities for contracting; research areas JEDCO, GNO Short to medium term, 27 funding where Jefferson companies can participate; work with partners to Inc., other regional long term if the process ensure small and local business participation partners is delayed August 2015
27 Cross-Cutting Issues 27 PERMITTING BUILDING STOCK GOAL: Jefferson Parish is a national GOAL: Address the long-standing leader in permitting efficiency and issues with Jefferson’s stock of excellence residential and commercial buildings WORKFORCE MARKETING & DEVELOPMENT MARKET EXPANSION & MOBILITY CHURCHILL PARK GOAL: Jefferson businesses have & FAIRFIELD GOAL: Improve connections to careers increased access to international for all Jefferson residents, and remove markets, and more businesses are barriers to opportunity aware of the opportunities in the parish GOAL: Use Churchill Park and the Fairfield development to further grow Jefferson’s targeted industry clusters and address cross-cutting issues Jefferson EDGE 2020: Economic Development Strategy
28 CROSS-CUTTING ISSUES Permitting Over the last few years, Jefferson Parish has made significant progress in permitting. However, pushing further and developing a new standard of excellence in permitting is achievable. Significant consensus on this issue came out of the stakeholder meetings, focused on the following three areas. Action Item Details Lead & Partners Timeline Focus on speed and efficiency – locate and identify the delays, triage JEDCO, Parish Address current challenges needs, and improve communication and coordination between the A Council, Parish Medium term in permitting Parish and municipalities Government Simplify the permitting Push for more permits approved administratively, rather than approved JEDCO, Parish B process by the planning advisory board and parish council Council, Parish Medium term Government Explore use of third party inspectors; cross-train employees so there are Expand the capacity of the JEDCO, Parish no gaps in service during business hours; provide a concierge service C permitting department Council, Parish Medium term that would offer expedited service and other benefits Government August 2015
29 Marketing & Market Expansion Marketing should continue to be a JEDCO function. With this new EDGE update, the industry clusters can be marketed as part of JEDCO’s core services: business retention, expansion, and attraction. Action Item Details Lead & Partners Timeline Market Jefferson Parish and Short term; add to D the EDGE plan’s targeted Ensure that the industry targets are a part of JEDCO materials JEDCO strategic operating plan industry clusters Develop programming to Explore partnerships with groups like the World Trade Center or even connect JP firms to expanded JEDCO, partners E Jefferson companies that are already doing significant international Medium term national and international TBD business like Laitram markets Jefferson is one of the most diverse parishes in the state and is home JEDCO, Hispanic Encourage and market the to thriving Hispanic and Vietnamese communities, many of whom own Chamber, other F diversity that makes Jefferson Long term beloved regional businesses and contribute to the parish’s unique partners to be unique culture determined Develop marketing JEDCO; some materials that can assist with Jefferson businesses and institutions would benefit from assistance regional recruitment of employees, promoting the parish’s improvements in education, cost of living, projects like G Short to medium term companies, and others housing, and quality of life; these materials would also assist business DestinationGNO. considering moving to attraction efforts com can be part of Jefferson Parish this effort as well Jefferson EDGE 2020: Economic Development Strategy
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