RDA Happenings June 2015
Posted on June 1, 2015 – By Emporia RDA
Last year construction began on the new Fanestil building on west Highway 50 and the Detroit Diesel Remanufacturing (DDR) warehouse on Overlander Street just west of the DDR building. Within the next 30 days or so both building will be completed and will begin to be occupied and then operational.
May 13th this past year was the annual lunch with the Emporia City Commission, Emporia En-terprises, the Lyon County Commission and the RDA Board of Directors. The five topics cov-ered in the meeting were:
RDA Mission Statement & Goals
Return on Investment
Economic Development 101
Direct Target Lead Generation
The RDA Mission is, “Our Mission is to proactively promote economic growth of the East Cen-tral Kansas region through industry recruitment, expansion and training enhancements.”
The three primary goals are,
The creation of skilled jobs that benefit the region
Encourage the retention of existing employment within the region
Create an atmosphere that provides growth opportunities to industry
The metric the RDA utilizes to measure outcomes are growth in tax base, which is converted into new property taxes generated, and average annual salaries. For instance, on a million dollar industrial/commercial property the taxes generate at today’s mill levy are $39,751. Whereas on a residential property, tax taxes would be $18,285.
Based upon statistics gathered by the State of Kansas on the various state incentive programs, the average manufacturing salaries in north central Kansas, which includes Lyon County and the City of Emporia is $43,570. Whereas the average retail salary is $21,741. Thus the primary reason we seek more manufacturing jobs in Emporia and Lyon County.
The RDA utilizes primary data collected annually from primary businesses as to their total full-time jobs, then compare that number to previous years. Once we know the total employees by utilizing the average annual salaries data from the State of Kansas, departments of Commerce and Revenue, the data is from the previous year, the total annual payrolls can be calculated.
From 2013 estimated to the end of 2015, three companies Hostess Brands, Simmons Pet Food and Birch Communications have added over 740 new full-time jobs. Based upon the State of Kansas’ average salary for those type of businesses the total annual payroll is estimated to vary from $29,684,382 to $30,752,000. Then the average salaries vary from $40,060 to $41,500.
The cumulative total of private sector investment from 1995 to 2015 (May) is $908.789, 270 with the addition of 2,235,168 sq. ft. of new building space. The total new jobs created is over 2,222. We estimate the total annual direct payroll of those jobs ranges from $94,000,000 to $96,212,000.
The next topic covered at the annual lunch meeting was a report on the target marketing lead generation. The RDA contracted with Applied Marketing, who targeted the following industries Food Processing and Products, Animal Nutrition, Plant/Animal Bioscience, Animal Health Food Testing and Safety, Logistics and Alternative Energy.
Through a process of elimination of those industries which businesses are expanding and good matches to Emporia/Lyon County’s assets were contacted by a variety of means.
The total potential companies were 210, which were contacted 768 times or 3.6 contacts per lead. Nine companies had actual expansion plans and another 14 were considering expansion plans. Of those, 8 telephone conference calls were scheduled with the RDA. A few were elimi-nated by their criteria, we are continuing interaction with one company that appears to be quite promising.
The RDA has existed for over 22 years and has had an excellent return on investment. The community has had several new and existing businesses grow and expand. Businesses do have a life cycle and several businesses have ceased operations.
It is imperative that business retention, expansion and recruitment efforts continue in our region to maintain and expand the economy.