this issue

Laborshed Analysis 2

Business Retention 3

Fly SUX 4

ABOVE: Phase 2 Construction at the Waste Water Treatment Plant in May in-site Siouxland’s source for economic development news, trends and information from The Siouxland Initiative.

Letter from the President TSI Tackles Waste Water Treatment On behalf of the Board as Part of Business Retention Efforts of Directors, investors, and staff at The Siouxland For the last several years, major concerns treatment facility. Concerns have been raised due to Initiative, I am pleased to identified in TSI’s annual business retention visits IDNR’s reluctance to accept capacity estimates based publish the first issue of our have been rising sewer costs and the uncertainty of on the use of new, more efficient technology being semi-annual newsletter, sufficient capacity at the current waste water treatment installed at the facility. The permitted capacity has been “in-site.” While I believe this facility as a result of increased regulation. reduced when actual capacity may be much greater. publication is an excellent TSI has aggressively addressed these issues by Also present at the meeting were experts on idea and will prove a assisting the major industrial sewer users and the City the new technology, including the researcher who tremendous asset to our of Sioux City in working together to solve the current pioneered the process. Although the technology has ability to communicate with challenges. TSI and our partners have been successful been used around the world, Sioux City is the first city Debi Durham in creating working committees that address specific attempting to install such technology in . Because our investors, the credit for challenges including sampling protocols, proper fiscal the technology has no established record in the state, conceiving this feature rests with our Chairman, management and technical difficulties. The committees IDNR has been hesitant to grant permits based on John Gleeson. Among John’s primary goals as are composed of city administrators, elected officials, models created outside Iowa. Discussions focused on Chairman of TSI is enhanced communication business leaders and TSI staff. the success of the technology in other communities and with and greater input from our investors. It is Efforts to address these issues have included how that may translate to Sioux City’s facility. As a result my genuine hope that these newsletters will help proposed city ordinance changes and several meetings of the discussions, Mr. Leopold and his team at IDNR accomplish our important objectives. with officials from the Iowa Department of Natural agreed to review the information presented in greater Resources (IDNR). These meetings with IDNR were detail and determine if the technology enhancements In this initial issue you will find updates related highlighted by a recent visit to Sioux City by Richard warrant granting additional permitted capacity. to the Sioux Gateway Airport, regional economic Leopold, IDNR director. TSI is confident that these waste water treatment development activity, the wastewater treatment The discussions in the meeting between Director issues can be resolved while simultaneously ensuring situation, annual community rankings, and much Leopold, City of Sioux City, the large sewer users and proper maintenance of natural resources as a result more. As we continue to work on a number of TSI focused on the actual capacity versus permitted of responsible stewardship of the environment by recruitment and expansion opportunities, I feel very capacity that exists at Sioux City’s waste water continued partnership and dialogue. good about our chances to close some of these projects; but I must acknowledge that activity in this economic environment has slowed. As the recession drags on, I am forced to Chamber Promotes balance my perpetual optimism with a more pragmatic realism rooted in the realities reflected Pro-Growth Agenda in Iowa, in an unpredictable stock market, inconsistent unemployment reports, and local, state, and and national governments awash in debt. Although I am confident that we will eventually recover, I do not feel it is imminent and will not be accomplished Iowa Session – a lesson in good defense without political leadership prepared to make very business people in the trenches. Suddenly, the bill difficult and fiscally disciplined decisions. That is exactly how it was in the 2010 Iowa becomes more than just words on a page and now legislative session. During the 2010 session, many represents real dollars to businesses of all sizes that In response to these challenging “bad for business” bills were proposed. Issues such employ Iowans. It is a constant battle to keep Iowa’s circumstances, TSI has streamlined our staff and as repeal of Iowa’s Right to Work law, elimination of business climate competitive. expanded the roles and responsibilities of our federal deductibility, establishment of a prevailing wage, There were a few less significant, yet troublesome personnel. We are more focused than ever on combined corporate income tax reporting, expansions bills that passed which may negatively affect business, acting as responsible stewards of the hard-earned to flood plain restrictions, and employee choice of but for now we have held off the major ones. resources you entrust to the important economic doctor were all introduced; most of which were also While we survived this session, it is no stretch development work we perform in Siouxland. introduced during the 2009 session. of the imagination to say that these bills will surface Thanks to constant vigilance and the willingness again. We will continue to monitor the activities of the The next six months will continue to present of business owners to get involved, voice their legislature and notify the business community when challenges, but I am confident that there is opposition, and provide information to local legislators, input is critical. However, if you want to be more active outstanding news on our employment horizon. these bills were all defeated. Nothing is more powerful on legislative issues, please contact us at the Chamber. There is nowhere I would rather be and no than when the legislators hear real stories from Continued on Page 4 community I would rather work with as we endeavor together to build Siouxland’s economy.

AUGUST 2010 volume 1 1 UNemployed employed 2,123 44,179 Business Laborshed Analysis 37,116 Estimated Number of Individuals HOMEMAKERS Very Likely or Somewhat Likely to Rock Valley 3,388 Change or Accept Employment Retention Beresford Hospers RETIRED Sioux Center A company’s expansion or relocation process begins long 1,552 TSI’s Annual Business Retention Orange City before the business makes their announcement to the media. Wakonda Alcester Survey Shows Year over Paullina A key factor in this process is for economic developers and existing or prospective employers to understand the workforce, employed Underemployment Year Improvement in Capital Akron including the availability of educated and skilled workers. To better Investment despite Slowing Job Elk Point Le Mars Remsen Cleghorn understand Siouxland’s workforce, TSI, with Iowa Workforce 28.9% currently working within the production, Individuals who work fewer than 35 hours per Creation Numbers Wynot Development, has recently completed the 2010 Laborshed construction and material handling week but desire more hours; working at wages Studies for the Sioux City Metro. Cherokee occupational category followed by 20.3% equal to or less than the national poverty level; Kingsley A laborshed is defined as an area or region in which an within the clerical occupational category and/or who are working in positions that do not Hartington TSI met with approximately 40 of our Ponca Hinton employment center draws its commuting workers. To determine meet their skill or education levels or worked for Coleridge major employers in the first quarter to the approximate boundaries of the Siouxland Laborshed area, higher wages at previous employment. 50 40 30 20 10 Galva local employers supplied the zip code listings of where each learn whether they are planning any future mi City Sioux Moville Correctionville of their employees reside. The laborshed analysis addresses expansions. Using data gathered from Dixon 15.5% Randolph Ida Grove underemployment, the availability and willingness of current work multiple jobs % % companies responding in consecutive years, Dakota City Climbing Hill and prospective employees to change employment within the 2.8 4.3 there was an improvement in expansion Emerson (1,039 people) (1,596 people) workforce, current and desired occupations, wages, hours plans in 2010 over 2009 in two major Winnebago Sloan Smithland worked, and distance willing to commute to work. The analysis Inadequate hours mismatch of skills indicators, even though the percentage of Winside also includes information on benefits, job search methods, and 40 Pender Mapleton industry specific data. companies planning expansions was down work hrs slightly. In 2010, respondents indicated that Rosalie Charter Oak % % Onawa average per week 8 2.8 they plan to invest over $17 million in future Commuter Concentration (2,969 people) (1,039 people) expansions, which is nearly $10 million estimated low income more than the same group of respondents West Point by place of residence (per zip code) Oakland underemployment 234,056 total potential labor force (entire laborshed area) planned to invest in expansions in 2009. Little Sioux The total size of all expansion plans also increased from 41,000 sq. ft. in 2009 to 1 - 78 79 - 447 448 - 1,686 1,687 - 4,472 Sioux City METRO BASE 65,000 sq. ft. in 2010. However, respondents indicated that they were hesitant to add more The full report is posted on our website and can be found on the economic development page under the labor market link. industrial Percent of Industry classification positions to their expansion plans until the Laborshed of employed economic situation improves. Manufacturing 17.6% 31,101 Wholesale & Retail Trade 16.3% 28,804 Health Care & Social Services 16.3% 28,804 TSI’s Technology Square Tri-State Progress Report Education 11.7% 20,675 65,000 Transfer Program Transportation, Communication & Utilities 9.39% 17,494 Footage Expansion Helps Launch Local Finance, Insurance & Real Estate 6.1% 10,779 41,000 Flynn Business Park Construction 4.8% 8,482 Following the success of the Gateway Business Park, Flynn Business Park was developed by North Tech Based Company Personal Services 4.5% 7,952 Sioux City Economic Development Corporation and the Public Administration & Government 3.7% 6,538 City of North Sioux City in 1999. Infrastructure within TSI’s economic 2009 2010 Flynn Business Park – including water, sewer, electric, development strategy Professional Services 3.7% 6,538 natural gas and telecommunications – is already in includes working to identify Agriculture, Forestry, & Mining 3.7% 6,538 promising technologies being place for future growth. Flynn Business Park is situated Entertainment & Recreation 1.1% 1,944 near Highway 105 and Interstate 29, and is zoned for developed at universities and industrial use. The business park was recently certified then to commercialize those Active Military Duty .6% 1,060 by CH2MHILL, requiring a rigorous checklist to ensure identified technologies locally. Capital $17.1m that the site has all the necessary infrastructure, zoning These activities have been Investment and other characteristics needed for development. labeled “technology transfer.” Several potential technologies have been identified and are in numerous stages of Siouxland native and development. The ultimate Looking Into the Crystal Ball $7.75m Roth Industrial Park ATG executive, goal of these activities is to There is nothing quite so uncertain as The latest unemployment figures for the Siouxland The Roth Industrial Park in South Sioux City, Craig Arnold create new technology based predicting the future. The most famous “futurist” MSA reflect a June unemployment rate of 7.1%. Our Nebraska continues to make tremendous progress and ventures in Siouxland. would have to be the 16th century author of “The most recent low was recorded exactly two years the South Sioux City community is very pleased with Antimicrobial Technologies Group (ATG) is an Prophecies,” Nostradamus. Although Nostradamus earlier in April of 2008, when the rate stood at 3.3%. the evolution this park has undergone in a relatively example of a company formed to commercialize was not always terribly specific in his forecasts, The local unemployment rate has climbed steadily short period of time. a technology TSI targeted as a candidate for he is nevertheless credited by many with correctly since that time, peaking in March of 2010 at 6.6%. 2009 2010 Home to companies like BPI, Omega Industries, commercialization. The technology, developed at the predicting significant global events. When coupled with a fairly volatile stock market, and NIRE Bio-Diesel, the Roth Industrial Park has University of South Dakota, was ranked by CNN as Recently, the City of Sioux City and Western Iowa the U.S. economic outlook remains uncertain. seen exponential growth since opening, and numerous one of the top ten health innovations of 2009. Tech Community College hosted Tom Faranda for Compounding the situation is a volatile European companies have visited and are actively considering ATG’s core technology is a coating that can be the City’s “Business for Breakfast” series. Faranda market that is wrestling with a financial calamity of adding operations in South Sioux City at this time. applied to numerous materials, including textiles and gave a fascinating presentation and made some bold its own in Greece. Renowned economists seem to paint, giving these materials antifungal, antibacterial New Job 405 In April, City Administrator Lance Hedquist revealed predictions, including that the Canadian Provinces of be bullish or bearish, with apparently few located in Positions that he expects to announce the addition of 1,000 to and antiviral protection. The technology is based on a British Columbia and Alberta would petition the United between. Clouding the ability to gauge any potential 1,200 jobs in this community by the end of the year. polymer that adheres to the specific material and also States within the next decade or so to become the 51st economic recovery is the creation of public sector binds to chlorine. As the material comes in contact and 52nd states and that the U.S. would accept them! versus private sector jobs, temporary employment with pathogens, the chlorine is released, destroying While I have no intention of making such daring positions created for the decennial U.S. Census, 65 the pathogen. The unique aspect of the technology is predictions, I will do my best to characterize current and recent college graduates streaming into the that, as the polymer bound material gives off chlorine economic conditions and what we are presently employment arena. to fight infections, it can be recharged to full strength experiencing in economic development locally. The good news is that the Sioux City region 2009 2010 simply by exposing the material to a source of chlorine. The recession that was declared in December remains an agri-business and food processing hub, The affect is a sterile surface for the life of the product. 2008 and retroactively assigned and as such we are weathering Southbridge Update TSI continues to support ATG in their local The City of Sioux City has continued investment a December 2007 start date, has the recession better than many growth, which includes plans for corporate facilities, undoubtedly begun to impact Sioux City region communities – some of which are towards the Southbridge Business Park with extensive a processing center, and space for warehouse and development including construction of the new Siouxland. The decision to close remains an agri- seeing unemployment exceed 20%. distribution. TSI’s efforts have included raising local John Morrell and Edge Teleservices, While economic development lead water treatment plant, the paving of 225th Street, the capital and assisting ATG in completing their executive reconstruction of Harbor Drive and connection of rail as well as the takeover of Terra business and food activity has slowed, we continue to Expansion 50% team which includes Siouxland native Craig Arnold. Chemical by CF compounded what work with our regional partners on 46.4% spur and drop and pull yard to the Union Pacific Railroad Mr. Arnold was previously part of the technology processing hub Plans YES line. The 225th project is underway, and it, along with most had begun to see as a slowing opportunities. There continues to be YES transfer program at TSI where he held the position of economy. For the better part of the first two years interest in the wind energy sector in the manufacture the Harbor Drive and rail projects, is anticipated to be Entrepreneur-in-Residence (EIR). The EIR program is completed by next summer. While funding for these of this recession, however, Siouxland had emerged of blades, towers, and the turbine engines. Recently, designed to retain entrepreneurs who assist in creating largely unscathed. Our unemployment rate had been Siouxland communities have been bridesmaids rather projects is allocated in the current budget, Sioux City companies to house targeted technologies. Although has aggressively applied for several alternative funding among the lowest in the nation, and at one point in than brides on two occasions with wind projects. the Technology Transfer and EIR programs are in 2009 the Sioux City Metropolitan Statistical Area There is a silver lining, however, as we now know sources, including the IDOT RISE program, EDA Public their infancy, TSI is excited about the progress of the 2009 2010 Works program, Iowa Wind Energy Rail Port program (MSA), we had the 13th lowest unemployment rate of that we have a great location and superb potential for programs and anticipates that they will have a positive the 372 MSAs in the nation! this industry. We will continue to aggressively pursue and I-Jobs Water program. There is a growing business economic impact on Siouxland in the future. interest in the Southbridge Business Park and we have As of early June 4, 2010, the national wind energy projects. unemployment rate edged down slightly to 9.7% after had a number of site visits. By Chris McGowen, peaking above 10% in the first quarter of the year. TSI Executive Vice President

2 thesiouxlandinitiative.com AUGUST 2010 volume 1 3 Mirror Mirror on the Wall, Who Ranks Fly SUX... but Pardon our Progress!

Highest of Them All? The exterior of the building will also Over the last several years, the Sioux City have some noticeable Metropolitan Statistical Area (MSA) has performed added amenities. A exceedingly well in national economic development new state-of-the art rankings. Published annually, these various rankings passenger loading bridge are coveted by states and metros alike, but what does has been added for inclusion on these esteemed lists really mean, and what passengers’ comfort and does ranking among these top communities foretell? a front canopy is being Dating back to calendar year 2006, Siouxland installed over the main emerged on the national scene earning recognition for entrance. The canopy ranking in the “Top Ten” of Site Selection magazine’s top will offer protection from economic development communities with populations the elements during drop off and pick up of under 200,000 people. Each March, Site Selection Artist Rendering of Exterior Terminal Renovation publishes the top ranked communities for economic passengers. development projects announced, under construction, The Sioux Gateway Airport/Col. Field is Work on the entrance will be completed by the or completed. To be scored, a project must meet one in the midst of a $4 million renovation, causing some end of the summer with work on the main lobby of the of the three qualifying criteria which include: a) $1 inconvenience for local travelers. However, travelers terminal to be completed in the fall. All of this was made million in capital investment; b) 50 new employees; need only look at the newly reopened baggage claim possible by a federal stimulus grant. c) 20,000 square feet of new floor space. Additionally, area and north area of the terminal (with the addition of The Northwest / merger even if a major project calls for a $100 million capital new bathrooms) to realize that the minor inconvenience was completed at the end of 2009. Signage has been investment, it is counted only a single time for scoring during construction is well worth it. The areas of the changed in the airport and most aircraft are now painted purposes, and retail, government, school, and terminal that have already been remodeled are very in Delta’s colors. In April, Delta Air Lines upgraded all hospital projects are not eligible for consideration. aesthetically pleasing and modern, as well as being flights out of Sioux Gateway Airport to 50-passenger In 2006, Siouxland ranked #3 nationally on much more efficient. regional jets, another welcome addition to the airport. this list and was the only community west of the In addition to the cosmetic aspect of the With three nonstop flights daily to Delta’s Midwest hub Mississippi River to be included in the rankings. While renovation, there has also been a complete makeover in Minneapolis, passengers truly have one-stop service Site Selection solicits information from states and of the heating, ventilating, and air conditioning (HVAC) to the world. communities on their economic development projects, system, allowing for better comfort for the traveling Regardless of your travel plans, please try Sioux Siouxland did not submit this information in 2006. public in all seasons. Gateway first! Instead, the projects were tracked by the magazine’s internal staff and “The Sioux City metro area Conway Data Publishing’s “New has once again emerged Plant Database.” as the top metro in its Whether Siouxland Industrial Legislative Session population category…” information about projects is Roundtable Continued... internally or externally generated, Site Selection reports that their “yearly analyses are regarded by corporate Nebraska Strengthens Nebraska real estate analysts as the industry scoreboard.” Advantage Act/Defeats “Fair Share” Building on the momentum established in 2006, Nebraska passed the Nebraska Advantage TSI began to track and submit our regional projects Modernization Act, which made changes to the Nebraska the following year, a practice that continues to this Advantage Act legislation passed five years ago. This day. As a result of these efforts and cooperation from legislation builds on the original bill that has encouraged all of our regional partner communities, Siouxland tremendous investment in the state. The new bill offers ranked #1 in the nation in both calendar years incentives for data centers and includes benefits as part 2007 and 2008. In 2009, we finished in second of wages paid, with the goal of attracting higher paying place and were once again the only community in jobs. The legislature also encouraged the development the Top Ten located west of the Mississippi River. of privately-owned wind farms. Nebraska was also Thus, the Sioux City metro has ranked in the top able to defeat “fair share” legislation that would have three communities in each of the last four years; an Mr. Eli Lustgarten Dr. Margo Thorning undermined Nebraska’s right-to-work guarantee. enviable position and one we are happy to hold. Said Site Selection Editor in Chief Mark Arend after The Siouxland Industrial Roundtable (SIR) was South Dakota Maintains Siouxland earned the top prize for the second year formed in 2006 and continues to feature speakers and Positive Business Climate in a row, “The Sioux City metro area has once again topics addressing timely issues affecting businesses. In South Dakota, where a favorable business emerged as the top metro in its population category… The June Roundtable featured Eli Lustgarten, climate exists due to the absence of both personal This means that more corporate real estate executives Economic Industrial Analyst. Mr. Lustgarten is a and corporate income taxes, legislators dealt with and site selection consultants are finding what they specialist in Industrial Machinery and Equipment many of the same issues as neighboring states: need in the region, including the right labor mix, with Longbow Resources. This was a well-received unemployment insurance, school funding, and a cost structures and logistics benefits. The Siouxland program with nearly 150 people attending. troublesome budget. Changes were necessary to economic development community is to be commended Dr. Margo Thorning, senior vice president and keep the unemployment insurance trust fund solvent. for its first place performance two years in a row.” chief economist with the American Council for Capital Fueled largely by the economic recession, the last While these rankings do not guarantee future Formation, addressed the Siouxland Industrial few years have seen a substantial increase in benefits success, they are from a respected national publication Roundtable in January and discussed the potential paid out. From 2004 to 2009, benefits paid out and one that is independently “audited,” which lends economic impact of the proposed cap and trade rose from $24.1 million to $64.6 million. Emergency even greater credibility to their work. The magazine’s legislation in Congress. legislation was passed to keep the fund solvent. circulation base consists of 44,000 executives involved Both speakers were featured in the Sioux City Legislation was also passed to make changes in corporate site selection decisions, most at the CEO/ Journal and were live guests on Open Line with to a refund program that provides reimbursement President/COO level. Site selection consultants also Randy Renshaw. of contractor excise taxes as well as sales and follow these rankings and know that communities TSI, through the SIR, will continue to address use taxes, to projects that are deemed to be very that rank high know how to both close deals and timely industrial issues and challenges. SIR serves significant in economic development terms. The complete projects, which are critical characteristics as a network forum for business leaders to exchange legislation was supported by the Governor’s office of successful economic development communities. non-proprietary information, learn from experts, and as a way to save money in a very tight budget year. TSI works to ensure that national site selection share business experiences. The feeling was that South Dakota was giving away consultants and corporate real estate officers are aware The SIR planning committee will meet this incentives to companies that would have built in the of and reminded of these rankings and Siouxland’s summer to plan for the next Siouxland Industrial state anyway. This legislation does appear to penalize performance. We are confident that our consistency Roundtable, scheduled for late fall. larger projects, and we hope it will be reevaluated in these annual rankings will help keep the Sioux City next session with the new administration. Metro on their radar screens for future projects. South Dakota once again managed to fend off a proposal to institute a state income tax.

Upcoming Events Contact Information The Siouxland Initiative 101 Pierce St., Sioux City, IA Annual Dinner (712)255-7903 September 28; keynote speakers John Heilemann www.thesiouxlandinitiative.com & Mark Halperin, authors of Game Change Debi Durham [email protected] The Siouxland Initiative Annual Meeting Chris McGowan [email protected] October 26 Joseph Wright [email protected] Barbara Sloniker [email protected] Teresa Rosenboom [email protected] Siouxland Industrial Roundtable Nicole Thompson [email protected] late fall

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