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SEMCOG / MAC Economic Development Special Meeting Partnering for Prosperity: Economic Development Strategy for Southeast Michigan An 18 Month Update - Where are we now? Where are we going? Tuesday, August 1, 2017 9:00 AM – 11:15 AM 1001 Woodward, Suite 1400 Detroit, MI 48226 Meeting Notes 1. Welcome • SEMCOG Executive Director Kathleen Lomako welcomed meeting participants and remarked that no single organization is in charge of the economy. All of our organizations have roles implementing the strategy. Lomako encouraged everyone to provide their input on transportation priorities for the 2045 Regional Transportation Plan with SEMCOG’s interactive online survey. • Mayor William Wild, City of Westland, and the Economic Development Task Force Chair, introduced the Partnering for Prosperity: Economic Development Strategy for Southeast Michigan. This comprehensive report identifies eleven broad strategies that encompass community assets, business climate, and talent and innovation. Mayor Wild provided several examples of how the City of Westland is implementing the strategy. 2. Implementation Activities for Partnering for Prosperity Presentation and conversation on accomplishments and implementation activities since adoption of the strategy • Kevin Johnson (SEMCOG Plan Implementation) facilitated the presentation of how SEMCOG and others have implemented the economic development strategy over the last 18 months. • SEMCOG’s promotional video markets the region by recognizing Regional Collaboration and Community Assets. • Kevin Vettraino (SEMCOG Plan Implementation) highlighted implementation of the community assets strategies, including the new Southeast Michigan Park Finder Mapping Tool. • Business Climate strategies focus on creating an environment conducive to business growth and job creation. MAC was part of a coalition that supported the Good Jobs for Michigan campaign – a tax incentive to help attract businesses with large numbers of high paying jobs by leveling the playing field with neighboring states. • SEMCOG and MAC supported the location of a squadron of F-35A Lightning II aircraft at Selfridge Air National Guard Base in Macomb County. • Chad Misiuk (SEMCOG Data & Analysis) presented the Site Explorer Map Series (the new maps presented will be available online soon), which was borne from recommendations of the Economic Development Task Force. • Virginia Wilkinson (Detroit Economic Growth Corporation) distributed DEGC’s Detroit Is On The Rise brochure and presented information on several initiatives: - Corporate Attraction (e.g., Quicken Loans, Whole Foods); - Business Retention & Expansion (e.g., The Sakthi Group, Blue Cross Blue Shield); - Small Business (e.g., Green Grocer Project, Motor City Match); - Real Estate Financial Services (e.g., Little Caesars Arena) SEMCOG’s Transportation Technology Summit in April brought together leaders from the public and private sectors to discuss the impacts that advances in transportation technology will have throughout our region, state, and country. The Education Reform Task Force developed recommendations in five key areas: High Quality Instruction; Funding; Career Technical Education; At Risk Populations; Governance. • Don O’Connell, Executive Director (retired), International Union of Operating Engineers Local 324, provided information on the Access for All program, which prepares Detroiters for the construction industry. This initiative encourages development of essential skills for careers in skilled trades with the focus on underserved urban areas. The program includes: - Construction industry information/understanding of the culture; - Instilling the notion that this is a career path – not just a job; - Nine weeks of classroom training and simulated work experience. Access for All has graduated 100 out of 140 students, with 90 out of 100 obtaining jobs in skilled trades. The program is expanding to Highland Park and Hamtramck. • Dan Hunter (Oakland County) reported that the county has been working on key components of economic development – retention, attraction, expansion, and attracting talent. Under the direction of L. Brooks Patterson, the Oakland Connected Vehicle Task Force was launched to advance the connected vehicle ecosystem. Key issues being tackled include: - Finding sources of funding to pay for connected vehicle infrastructure; - Growing and attracting businesses in this realm; and - Attracting the talent needed to advance this technology. With only one remaining automotive manufacturing plant in the county, the task force work is aligned with retention and expansion of OEM research and development. Major emphasis rests with the development of infrastructure, such as the I-75 project, currently waiting for federal standards and direction. • Tim Lake (Monroe County Business Development Corporation) reported that Monroe County has been working on an intensive study of I-75, and has developed six pillars that are consistent with the Partnering for Prosperity Economic Development Strategy. The Gordie Howe Bridge will increase traffic and commerce significantly. Other key areas of focus include: - Addressing the shortage of industrial land availability for growing firms; - Streamlining the development process; - Following-up a 10 year plan to implement the 30 action steps identified in the study; - Dealing with the challenge of losing a large utility as source of tax revenue; - Placing water/sewer infrastructure in GIS inventory; - Developing Battlefield/Parks as tourist attractions. • David Struck (St. Clair County) reported that St. Clair County has placed a priority on developing resources along its waterfront assets. These initiatives include the Blue Water River Walk, Blue Water Convention Center, and culinary opportunities. The Blueways of St. Clair County (river version of a greenway or bike trail) provides a multitude of recreational opportunities. A brownfield redevelopment grant has helped in the creation of 1,400 jobs. Another area of focus has been within the City of Port Huron, which has had several recent redevelopment projects, including redevelopment to hotels, lofts, transit center, and health sciences. Other communities have had redevelopment investments, including the City of St. Clair. St. Clair County Community College received a $10 million grant for Health Sciences in the state budget. • Tom Kelly (Automation Alley) said that Automation Alley has refocused its mission to assist Southeast Michigan manufacturers with entering the fourth industrial revolution – also referred to as Industry 4.0. Germany and China already have been steering their strategic investment decisions in this direction. The significance of Industry 4.0 is that everything is connected to everything. So, it will be critical for local manufacturers to invest in new technologies. All technologies are affected: artificial intelligence, cloud computing, big data, sensors. Michigan’s manufacturing heritage and assets positions it well for this new production paradigm, which will have an impact on job creation in the region. “Winning” in Industry 4.0 will require bridging technology companies with manufacturing, and enhancing the user experience to support innovation. 3. SEMCOG’s Regional Development Forecast Presentation on SEMCOG's new Regional Development Forecast and what it means for business, employment, and economic development opportunities • Xuan Liu delivered a presentation of the 2045 Regional Development Forecast (RDF). The RDF presentation is available online, as is the forecast report. • Key takeaways: - Population will increase by 8.1% - Employment will increase by 6.6% - The population over 65 years of age will increase by 67% and make up one in four people in the region by 2045 - Decline in school age population - Manufacturing will employ fewer workers but produce more due to technological improvements 4. The Region Moving Forward Discussion with meeting participants on future business, employment, and economic development opportunities. We will be seeking input from meeting participants to assist us as we continue to put the economic development plan into action. • Renze Hoeksema (DTE Energy) announced that DTE Energy was planning for construction of a new $1 billion natural gas power plant in St. Clair County. Construction of the 1100 megawatt plant would begin by 2019 and provide power to 850,000 homes by 2022. This relates to DTE’s plans to retire three facilities (St. Clair facility in East China Twp., River Rouge, Trenton) and repurpose the sites. DTE has been addressing the economic impacts of taking these coal power plants offline. DTE initiatives also include: - Partnering on the new NEXUS natural gas pipeline from Ohio to Michigan; the $2 billion investment which will bring 1500 jobs statewide is expected to be operating by next year. - Continuing its investment to Pure Michigan Business Connect local supplier initiative which creates new jobs in Southeast Michigan and across the state. - Investing in the community, including: o The new Beacon Park’s programs in sports, concerts, and greening space; o Randolph School to ensure young people and adults have the opportunity to learn construction and technology skills. • Mike Maher (Chemical Bank) provided comments on factors affecting the Detroit area lending market: - There are growth opportunities in Detroit. - Early stage companies require greater outside support to secure capital from banks (collateral, guarantees). The need for these credit enhancement sources is due to banking being a highly
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