Okaloosa County BOCC — March 4, 2014 — EDC FY 2013 Annual Report for Okaloosa County - FINAL

The Economic Development Council of Okaloosa County, Florida MEMORANDUM Date: February 10, 2014 To: Ernie Padgett, County Administrator, Okaloosa County From: Nathan Sparks, Executive Director, EDC of Okaloosa County Subject: FY 2013 Annual Report As you are aware, the February 2011 Marketing Services Agreement that exists between the Okaloosa County Board of County Commissioners and the Economic Development Council of Okaloosa County (“EDC”) includes a provision stating that the EDC will provide an Annual Report to the County. As provided for within the Agreement, the Annual Report should detail how County funds were spent and the results of these efforts. In addition to providing the Commission with the required information, this report is intended to provide additional insight into EDC programs, strategies and objectives. Use of County Funds In fiscal year 2013, Okaloosa County invested $120,933 in the EDC. This amount equated to 29% of the EDC’s total operational budget, with other sources of funding being allocations of varying amounts from Okaloosa County municipalities, private sector investors / members and restricted grant dollars awarded through the State of Florida’s Defense Reinvestment Grant (DRG) program. The approximate breakdown of how County funds were utilized is as follows: • 40% for existing industry retention & expansion • 20% for workforce development initiatives • 30% for strategic marketing / industry recruitment • 10% for defense support activities Specific insight into the various programs and activities within each of these four areas follows below. Existing Industry Retention & Expansion Aiding with the retention and expansion of existing industries was the most significant component of the EDC’s Program of Work in 2013 – and rightfully so. Research indicates that some 80% of new jobs in a community are created by existing industry, and the EDC believes that our first priority must be on supporting our community’s existing industries and their growth opportunities. Existing Industry Retention and Expansion initiatives undertaken in FY 2013 included: • Monthly educational and networking opportunities through the EDC’s TeCMEN (Technology Coast Manufacturing & Engineering Network) committee Post Office Box 4097, Fort Walton Beach, FL 32549 850-362-6467 ~ www.florida-edc.org  The Economic Development Council of Okaloosa County, Florida • Conducted extensive “Capabilities Survey” of TeCMEN member businesses • Established the EDC’s Unmanned Systems Network (USNet), a committee designed to complement Okaloosa’s science and technology base with a focus on the unmanned systems and robotics sector • Continued pursuit of a collaborative partnership with the University of Florida and the Air Force Research Lab to facilitate the development of an Autonomous Vehicle Center adjacent to the REEF • Shepherded 12 existing industry expansion projects, five of which were newly activated in FY 2013 • Increased utilization of County’s Economic Development Ad Valorem Tax Exemption program for existing industries (Advanced Sawmill Machinery in Holt and Bit-Wizards in Fort Walton Beach received a combined $27,094 exemption from the Board of Commissioners, resulting in 64 jobs being created/retained and a projected capital investment of $2,675,612). • Facilitated State of Florida Qualified Target Industry (QTI) incentive awards for Advanced Sawmill Machinery and Bit-Wizards totaling $111,600 • Facilitated three existing industry applications under the Industry Recruitment, Retention and Expansion Fund (IRREF) Grant Program; all three were successful, with awards totaling $778,651 Workforce Development Initiatives In recent years, the EDC has found that the number one question that businesses contemplating locating or expanding in Okaloosa County ask is “Where am I going to find qualified employees?” Companies today demand that communities offer them ready access to top talent. Meanwhile, they expect that communities will work diligently to identify, train and educate the “workforce of tomorrow”. Okaloosa County’s comparatively low unemployment rate (one of the lowest in the state) presents a challenge for many business decision makers to understand our community’s potential talent supply. With that in mind, the EDC has become a strong advocate and collaborative partner in the realm of workforce development and skills training. Workforce Development initiatives undertaken in FY 2013 included: • Partnered with the Workforce Development Board of Okaloosa / Walton Counties and the University of West Florida to provide no-cost Manufacturing Supervisory Skills Certification Training to 32 individuals from 13 companies for a total combined value of $20,000 • Championed the needs of local employers, as well as those considering the area, through involvement on the Workforce Development Board and the Business Competitiveness Council • Utilized “RESTART: Retired and Separated Targeted Transition Report” of separating military personnel to better understand and quantify the specialized skills of this targeted employment group • Served as a regular convener and catalyst for dialogue between local industry and area educators Post Office Box 4097, Fort Walton Beach, FL 32549 850-362-6467 ~ www.florida-edc.org  The Economic Development Council of Okaloosa County, Florida Strategic Marketing / Industry Recruitment As Okaloosa County’s primary economic development organization, the EDC is tasked with being the chief promoter of community assets to external audiences including corporate site location consultants and decision makers in targeted business and industry sectors. While the EDC’s execution of an aggressive external marketing strategy has been impacted by a decline in funding in recent years, the organization realized the following successes in FY 2013: • Unveiled a new targeted marketing initiative focused on the recruitment of suppliers to the future Airbus airplane manufacturing facility in Mobile, Alabama. Spearheaded the development of a five county coalition created specifically for this purpose. • Worked hand-in-hand, as directed by the Commission, with county staff, community partners and Gulf Power to pursue McCallum Sweeney’s Certified Park designation for the Okaloosa County Industrial Air Park in Crestview resulting in an invitation to participate in the third and final phase of Florida’s first industrial site certification program • Worked with County Commission and Chambers of Commerce to lay foundation for 2014 renewal of Okaloosa County’s Economic Development Ad Valorem Tax Exemption Program • Reconstituted Crestview Enterprise Zone #4601 with a new chairperson and board • Participated in county-wide Six Pillars planning initiative and city-specific economic development planning sessions in Crestview, Destin and Fort Walton Beach • Shepherded 13 industry recruitment projects, eight of which were newly activated in FY 2013 • Assisted Project Up Under with an application for the County’s Economic Development Ad Valorem Tax Exemption (resulting in a value of $316,304) and an application for the Industry Recruitment, Retention and Expansion Fund Grant Program Defense Support Initiatives With the Department of Defense being responsible for more than 71,000 jobs in Okaloosa County and direct local spending approaching $3 billion, the defense sector remains a primary driver of the local economy. In recognition of this impact, the EDC remains committed to serving as a champion for - and partner to - the many military missions that call Okaloosa County home. The EDC’s Defense Support Initiative committee has been in existence for more than 20 years, and is widely-regarded as one of the finest examples of community/military collaboration around. By working to ensure the survival and accommodate the growth of area military installations, the DSI is committed to the success of one of our area’s most valued economic engines. The EDC’s FY 2013 defense support activities included the following: • Through DSI unit liaisons, undertook regular interface with commanders of local installations, resulting in the timely identification of their respective needs, challenges and opportunities • Served as a key partner in the Northwest Florida Defense Coalition’s Annual Washington D.C. Fly-In, resulting in direct advocacy in support of area installations Post Office Box 4097, Fort Walton Beach, FL 32549 850-362-6467 ~ www.florida-edc.org  The Economic Development Council of Okaloosa County, Florida • Successfully pursued a State of Florida Defense Reinvestment Grant (DRG) award through Enterprise Florida. Funds were awarded specifically to support the continued operation of DSI, to aid in existing industry outreach through the EDC’s TeCMEN and to assist with industry diversification initiatives in the aerospace sector • Applied for a Florida Defense Support Task Force (FDSTF) grant to be used to develop a lasting framework for realizing cost reductions through innovative shared services, land use initiatives, development projects and other partnerships between Eglin AFB and the local community • Served as a partner to – and participant in – the Northwest Florida Military Sustainability Partnership, the Northwest Florida Defense Coalition and the Florida Defense Alliance • Supported USAF’s GRASI (Gulf Regional Airspace Strategic Initiative), a partnership with the State of Florida, other states and federal agencies to ensure near optimum use of airspace by civilians and the military throughout the Gulf Coast region Conclusions FY 2013 was a unique year for the EDC. The organization began its fiscal year with a long-time executive director phasing out his responsibilities operated under the leadership of a capable interim director for several months and finished the final quarter of its fiscal year with a new director at the helm. Despite the leadership transition that was taking place, FY 2013 was a highly successful year for the EDC and, in turn, for Okaloosa County as evidenced by this report. The community’s low unemployment and recent ranking as one of the fastest growing Metropolitan Statistical Areas (MSAs) in the country provide further validation of the community’s economic development prowess. Meanwhile, third party accolades from publications such as Southern Business and Development (“Top 10 Locations for Boeing and Airbus Suppliers”) and USA Today (“Cities Adding and Losing the Most Jobs”) also demonstrate that our community is at the forefront of success. As the EDC begins its 25th year of operations in 2014, the organization has never been more convinced of the bright future that Okaloosa County has within its grasp. The EDC remains grateful to the Okaloosa County Board of County Commissioners for your continued partnership and for the confidence that you have bestowed in us to meet the economic development needs of our great community. Post Office Box 4097, Fort Walton Beach, FL 32549 850-362-6467 ~ www.florida-edc.org