City of Irving Economic Development Strategic Plan by City of Irving

CITY OF IRVING, TX

ACKNOWLEDGEMENTS TIP Strategies would like to thank the many individuals who contributed to the creation of the Irving Economic Development Strategic Plan. Dozens of business and community leaders participated in this project and contributed to our understanding of the challenges and opportunities facing Irving. We are especially grateful to the leadership and staff of the City of Irving for their valuable support and guidance throughout the planning process. We also want to thank partner organizations who generously gave their time and input, particularly the Greater Irving-Las Colinas Chamber of Commerce, the Irving Convention & Visitors Bureau, the Irving Hispanic Chamber of Commerce, and the Las Colinas Association. CITY OF IRVING MAYOR AND CITY COUNCIL Beth Van Duyne Mayor (at-large) Dennis Webb Mayor Pro Tem, Place 3

John C. Danish Place 1 Phil Riddle Place 4

Allan E. Meagher Place 2 (at-large) Oscar Ward Place 5

Brad M. LaMorgese Deputy Mayor Pro Tem, Place 6

Kyle Taylor Place 7

Wm. David Palmer Place 8 (at-large)

Michael Morrison Deputy City Manager Doug Janeway Chief Development Officer

Ryan Adams Assistant to the City Manager Maura Gast, FCDME Executive Director, Irving Convention & Visitors Bureau

Don Williams Vice President of Economic Development & Operations, Greater Irving-Las Colinas Chamber of Commerce

Joey Grisham Director of Business Recruitment, Greater Irving-Las Colinas Chamber of Commerce

CITY OF IRVING STAFF Chris Hillman City Manager Scott Connell Director of Economic Development

IRVING PROJECT TEAM PARTNERS Beth Bowman President & CEO, Greater Irving-Las Colinas Chamber of Commerce

Joe Chapa Executive Director, Irving Sister Cities / International Trade & Development Assistance Center, Greater Irving-Las Colinas Chamber of Commerce

TIP STRATEGIES CONSULTING TEAM Jon Roberts Managing Principal

John Karras Senior Consultant

PAGE | I

CITY OF IRVING, TX

CONTENTS Introduction ................................................................................................................................................................. 1 The Framework ...................................................................................................................................................... 1 The Approach ......................................................................................................................................................... 1 SWOT Analysis ...................................................................................................................................................... 2 The Opportunity...................................................................................................................................................... 3 The Challenge ........................................................................................................................................................ 3 Strategic Plan ............................................................................................................................................................. 4 Vision ...................................................................................................................................................................... 4 Priority Initiatives .................................................................................................................................................... 4 Initiative 1. International Business Development ................................................................................................ 5 Initiative 2. Entrepreneurship & Innovation ......................................................................................................... 9 Initiative 3. Higher Education Research & Development .................................................................................. 12 Initiative 4. Business Retention & Expansion .................................................................................................... 13 Initiative 5. Domestic Business Recruitment ..................................................................................................... 16 Initiative 6. Economic Development Tools & Resources .................................................................................. 18 Initiative 7. Events & Conferences .................................................................................................................... 22 Initiative 8. Community Brand & Image ............................................................................................................. 24 Organizational Framework ................................................................................................................................... 26 Irving Economic Development Advisory Council (EDAC) ................................................................................. 26 Performance Metrics ............................................................................................................................................ 27 Appendix A: Support Structures ............................................................................................................................... 30 Support Structure 1: Sites & Infrastructure .......................................................................................................... 31 Support Structure 2: Talent & Workforce Development ....................................................................................... 33 Support Structure 3: Quality of Place & Amenities .............................................................................................. 35 Appendix B: Peer Organizational Comparison ......................................................................................................... 39 Appendix C: Incentive Program Evaluation .............................................................................................................. 43 Incentive Recommendations for Irving .............................................................................................................. 43 Local Incentives Use ......................................................................................................................................... 45 Best Practices ................................................................................................................................................... 47 Appendix D: SWOT & Economic Assessment ......................................................................................................... 50 Introduction ........................................................................................................................................................... 50 Key Findings ...................................................................................................................................................... 51 SWOT Analysis ................................................................................................................................................. 54 Economic Assessment ......................................................................................................................................... 57 Location Advantages ......................................................................................................................................... 57 Economic Trends .............................................................................................................................................. 60 Commuting Patterns .......................................................................................................................................... 66 Industry Analysis ............................................................................................................................................... 70 Workforce and Occupational Analysis .............................................................................................................. 74 Benchmark Comparisons ..................................................................................................................................... 78 Appendix E: Target Industry Analysis ....................................................................................................................... 85 Recommended Target Industries for Irving .......................................................................................................... 86 Quantitative Analysis ............................................................................................................................................ 86 Qualitative Analysis .............................................................................................................................................. 89

PAGE | II

CITY OF IRVING, TX

Strategic Considerations ...................................................................................................................................... 89 Target Industry Recommendations ...................................................................................................................... 90 Corporate Headquarters .................................................................................................................................... 90 Corporate Training ............................................................................................................................................ 91 Foreign-Based Corporations ............................................................................................................................. 91 Software & Information Technology .................................................................................................................. 92 Telecommunications ......................................................................................................................................... 92 Finance & Insurance ......................................................................................................................................... 93 Health Care Specialties & Laboratories ............................................................................................................ 93 Professional Services ........................................................................................................................................ 94 Industrial Technology ........................................................................................................................................ 95 National Associations ........................................................................................................................................ 96 Appendix F: Strategic Marketing Initiatives .............................................................................................................. 97 Introduction ........................................................................................................................................................... 97 Create a unified brand and marketing strategy for the Partnership ................................... 98 Build new relationships and strengthen existing relationships with key audiences. ........ 101 Marketing Strategies Implementation Table....................................................................................................... 103 Target Industry Intelligence ................................................................................................................................ 105 Appendix G: Prioritized Site Listing ........................................................................................................................ 115 Vacant & Redevelopable Land ........................................................................................................................... 116 Vacant Commercial & Industrial Land ................................................................................................................ 117 Redevelopable Commercial & Industrial Land ................................................................................................... 118 Prioritized Site Evaluation .................................................................................................................................. 119 Former Texas Stadium Site District ................................................................................................................ 120 Irving Convention Center Station .................................................................................................................... 121 Heritage Crossing District ................................................................................................................................ 122 North Lake College Station ............................................................................................................................. 123 Irving Mall ........................................................................................................................................................ 124 Plymouth Park ................................................................................................................................................. 125 Carpenter Ranch ............................................................................................................................................. 126 Valley View ...................................................................................................................................................... 127 Appendix H: Implementation matrix........................................................................................................................ 128 Implementation Plan - Years 1-5 ..................................................................................................................... 128

PAGE | III

CITY OF IRVING, TX

INTRODUCTION THE FRAMEWORK Irving has achieved significant success in growing the city’s employment and tax base, thanks in large part to the community’s partnership approach to economic development. The Irving Economic Development Partnership (the Partnership) consists of the City of Irving, the Greater Irving-Las Colinas Chamber of Commerce, and the Irving Convention & Visitors Bureau (IICVB). This plan provides a roadmap for Irving’s economic development program over the next five years. It is organized under the framework shown to the right. The ultimate success of the recommendations will rest on the commitment of the City of Irving and the business community. The plan also calls for a revitalization of the existing Partnership, with more specific roles and responsibilities assigned to the City of Irving, the Greater Irving-Las Colinas Chamber of Commerce, and the Irving Convention & Visitors Bureau. In addition, a set of performance metrics is included to track progress and ensure proper accountability throughout the implementation of strategies.

THE APPROACH

STRATEGIC PLAN SUMMARY VISION Irving is the leading international business center in America—a destination for investment and high-wage jobs and a vibrant urban community.

PRIORITY INITIATIVES 1. 2. 3. 4. 5. 6. 7. 8.

International Business Development Entrepreneurship & Innovation Higher Education Research & Development Business Retention & Expansion Domestic Business Recruitment Economic Development Tools & Resources Events & Conferences Community Brand & Image

SUPPORT STRUCTURES 1. 2. 3.

Sites & Infrastructure Talent & Workforce Development Quality of Place & Amenities

Over the course of several months in 2015 and 2016, the TIP Strategies consulting team worked closely with Irving’s business and community leaders to identify the community’s most promising opportunities for economic growth. The first step was to establish a common understanding of assets and challenges. This “Discovery Phase” included valuable roundtable discussions and interviews with over 150 stakeholders representing a broad cross section of Irving’s business, government, and academic leadership. During this phase, the consulting team also compiled a wide range of demographic and economic data for Irving and the Dallas-Fort Worth metro area in relation to Texas and the US. The economic research also compared primary competitor cities in the metro area to gain a better understanding of how the city fares vis-à-vis its competition. The benchmark cities include: Allen, Arlington, Carrollton, Dallas, Fort Worth, Frisco, McKinney, Plano, and Richardson. In addition to our review of economic and demographic data, our understanding of Irving was informed by roundtable discussions and interviews with local business and community leaders, as well as our experience working with communities across the country. Based on this work, we developed an analysis of the city’s strengths, weaknesses, opportunities, and threats, commonly referred to as a SWOT analysis, which is summarized on the following page.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 1

CITY OF IRVING, TX

SWOT ANALYSIS STRENGTHS

WEAKNESSES

 Central location

 Disconnect between neighborhoods

 DFW International Airport

 Lower K-12 school rankings than peer cities

 Diverse, internationally-connected population (including the most diverse zip code in US, 75038, according to analysis from Trulia)

 No dedicated economic development fund

 Strong, diverse economic base with many corporate HQs and other corporate operations  Well-established business ties to foreign countries (India, Japan, Mexico, Finland, Saudi Arabia)  Strong industry clusters: software & IT, telecommunications, finance & insurance, professional services, health care

 Lack of “cool old buildings”, the environments typically preferred by tech firms & startups  Amenities that have not maintained their initial levels of vitality (e.g., Las Colinas canals, Heritage Crossing District, Valley Ranch, Irving Mall)  Limited availability of housing product & price points

 Robust hospitality sector (hotels, events, corporate training)  Access to a large, skilled workforce locally & regionally  Public transportation connections to the region  New lifestyle developments with amenities being built (Water Street, Irving Music Factory, Hidden Ridge)

OPPORTUNITIES

THREATS

 International business development

 Competition from other DFW Metroplex cities for business expansion & recruitment projects

 Cultivate a welcoming environment for international talent  Focus on innovation, entrepreneurship, and research & development

 Perception of city as “built-out” with no development or redevelopment opportunities  Underdevelopment of amenities

 Connecting tourism & business recruitment

 Aging retail districts

 Former Texas Stadium site & surrounding district

 Perception of Irving and Las Colinas as two different cities

 Developable acreage next to DART & TRE stations  Enhance urban vitality & amenities in Heritage Crossing District, Las Colinas & other districts  Increase investment and enhance partnerships with state & regional business recruitment efforts  Leverage Irving’s status as #1 City to Start or Launch a Career (based on WalletHub’s analysis) to attract Millennials & creative workers  Capitalize on Texas Musicians Museum and Irving Music Factory as catalyst developments  Develop a greater variety of parks & trails throughout Irving for recreational uses

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 2

CITY OF IRVING, TX

THE OPPORTUNITY The chief opportunity identified in this plan is to solidify Irving’s status as a premier location for business relocation and expansion. In fact, Irving has the opportunity to become America’s leading international business center. Irving’s successes in economic development deserve the highest praise. Irving has more Fortune 500 headquarters per 100,000 residents than any city in the US (among the 17 US cities with at least five Fortune 500 HQs) outside of Atlanta. And Irving is the only suburb on this list. This confirms the community’s role as a major economic engine within the DFW Metroplex. Thanks to the strength and diversity of the local economy, WalletHub named Irving 2015’s “#1 Best City to Start a Career” among the nation’s 150 largest cities. This rating was based on an analysis of 19 data points that looked at job growth, income growth, workforce diversity, and other factors.

FIGURE 1. US CITIES WITH AT LEAST FIVE FORTUNE 500 HEADQUARTERS City

Popula tion (2 0 1 4 )

HQ s per 1 0 0 ,0 0 0 pop.

Atlanta, GA

456,002

2 .8 5

Irving, TX

2 3 2 ,4 0 6

2 .5 8

Cincinnati, OH

298,165

2 .3 5

Richmond, VA

217,853

2 .3 0

St. Louis, MO

317,419

2 .2 1

Pittsburgh, PA

305,412

1 .6 4

Minneapolis, MN

407,207

1 .4 7

Omaha, N E

446,599

1 .1 2

Houston, TX

2,239,558

1 .1 2

Milwaukee, W I

599,642

0 .8 3

Seattle, W A

668,342

0 .7 5

San Francisco, CA

852,469

0 .7 0

Dallas, TX

1,281,047

0 .7 0

Charlotte, N C

809,958

0 .6 2

8,491,079

0 .5 8

1,436,697

0 .3 5

2,722,389

0 .3 3

500

3 1 8 ,8 5 7 ,0 5 6

0 .1 6

N ew York, N Y San Antonio, TX Chicago, IL

THE CHALLENGE

Fortune 5 0 0 HQ s

Sources: Fortune, US Census Bureau

The challenge of this plan is responding to the highly competitive environment in which Irving operates. Despite its many advantages—ranging from transportation to workforce to prime sites—the city is in a constant battle for projects within the region. The DFW Metroplex is growing much faster than its three larger peers—New York, Los Angeles, and Chicago—and continues to gain jobs and investment across many sectors. Irving occupies an enviable position within the Metroplex, but is flanked in every direction by well-funded and successful economic development programs. Given these realities, it is clear that a more aggressive approach to economic development is needed. For the purposes of this plan, and for the City of Irving, we define economic development as the growth of the commercial and industrial tax base (along with a shift from a dependence on residential property taxes). In addition, success is defined as an increase in higher-wage employment opportunities and the attraction of innovative individuals and capital investment.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 3

CITY OF IRVING, TX

STRATEGIC PLAN VISION An economic development strategy must be driven by a clear vision. Meaningful vision statements are bold, provide a clear direction, and differentiate the community from its competition.

Irving is the leading international business center in America— a destination for investment and high-wage jobs and a vibrant urban community.

PRIORITY INITIATIVES Priority initiatives form the foundation of the strategic plan and are necessary to focus the City’s efforts on outcomes that will build Irving’s long-term economic prosperity. The following eight initiatives make up the framework for the strategic plan. Specific strategies and actions follow. INITIATIVE 1. INTERNATIONAL BUSINESS DEVELOPMENT: Attract investment from foreign businesses, help local firms gain entry into foreign markets, and create a welcoming environment for the international community. INITIATIVE 2. ENTREPRENEURSHIP & INNOVATION: Create a dynamic local environment for entrepreneurship, innovation, and research & development activities. INITIATIVE 3. HIGHER EDUCATION RESEARCH & DEVELOPMENT: Establish centers of excellence in Irving through higher education and industry partnerships. Link these to entrepreneurship and actively pursue new research & development opportunities. INITIATIVE 4. BUSINESS RETENTION & EXPANSION: Reinforce and invest in Irving’s business retention & expansion (BRE) program as a cornerstone of the community’s economic development efforts. INITIATIVE 5. DOMESTIC BUSINESS RECRUITMENT: Strengthen Irving’s business recruitment program through partnerships with existing businesses and by strengthening ties with business allies for regional and state recruitment activities. INITIATIVE 6. ECONOMIC DEVELOPMENT TOOLS & RESOURCES: Employ more aggressive incentives to encourage job creation and investment. INITIATIVE 7. EVENTS & CONFERENCES: Support and leverage Irving’s hospitality assets and strategically enhance linkages between the City’s business recruitment program and its conference/event solicitation and promotion efforts. INITIATIVE 8. COMMUNITY BRAND & IMAGE: Enhance Irving’s image as a place that combines business growth with richer residential and entertainment opportunities.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 4

CITY OF IRVING, TX

INITIATIVE 1. INTERNATIONAL BUSINESS DEVELOPMENT Attract investment from foreign businesses, help local firms gain entry into foreign markets, and create a welcoming environment for the international community. International business attraction and foreign direct investment FOCUS AREAS are appealing strategies to many economic developers, in part  Relationship development through Irving’s because recruitment successes are generally high profile and existing foreign-based firms generate excitement. However, for most communities, the  New opportunities for Irving-based firms to domestic business opportunities far outweigh the potential for expand into the global marketplace international development. Most cities would be ill-advised to  A welcoming local environment for deploy substantial resources to pursue global opportunities international talent when there are more economic development possibilities in  Leverage Irving’s International Trade their own backyard. Irving is not one of those cities. With nearly Development and Assistance Center 100 foreign-based firms from more than 20 countries, Irving is well-positioned to make international business development an additional core component of its economic development program. DFW International Airport is currently in growth mode, adding nonstop flights to global business centers in multiple continents and growing its international passengers at a faster pace than the other 10 busiest international airports. Given the city’s assets (DFW International Airport, dozens of US- and foreign-based corporate offices, and a large pool of talent), Irving should promote itself as a logical choice for expansion and relocation of multinational corporations. The city’s high level of racial/ethnic diversity, including a high percentage of foreign-born residents, supports its position as a place that welcomes international residents and visitors. In fact, Trulia conducted a demographic analysis of the neighborhoods in the nation’s 100 largest metro areas in 2012 and found that Irving contained the most diverse zip code (75038) in the country.

FIGURE 2. TOP 10 AIRPORTS IN US WITH THE MOST INTERNATIONAL PASSENGERS, 2014 NO.

CODE

AIRPORT

JFK

John F. Kennedy International (New York)

MIA

INTERNATIONAL PASSENGERS (2014*)

AVG. ANNUAL % CHANGE (2010-2014)

12,438,236

4.9%

Miami International

8,801,714

4.8%

LAX

Los Angeles International

8,338,162

4.4%

EWR

Newark Liberty International

5,233,797

1.4%

ORD

Chicago O'Hare International

4,999,478

1.3%

ATL

Hartsfield-Jackson Atlanta International

4,788,272

4.0%

SFO

San Francisco International

4,565,231

4.7%

IAH

George Bush Intercontinental (Houston)

4,277,424

4.5%

IAD

Washington Dulles International

3,160,720

3.3%

DFW

Dallas/Fort Worth International

3,094,068

8.0%

Source: US Bureau of Transportation Statistics.

*Through Nov. 2014.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 5

CITY OF IRVING, TX

STRATEGIES 1.1. FUNDING FOR INTERNATIONAL DEVELOPMENT. Expand the resources available to international business development for additional staffing and activities targeting Asia, Europe, Mexico, and other strategic geographies. 1.1.1.

Review the Chamber’s staff capacity to better support existing foreign companies in Irving and to establish and maintain long-term business relationships in key foreign markets through the International Trade Development and Assistance Center.

1.1.2.

Cultivate and expand relationships with Irving corporations that have an existing global presence, including foreign-based firms and domestic firms seeking larger international market opportunities.

1.1.3.

Evaluate the financial resources necessary to participate on international trade missions (inbound and outgoing) to develop more opportunities for trade and investment.

1.2. DFW INTERNATIONAL AIRPORT. Work closely with DFW International Airport to pursue international business development opportunities. 1.2.1.

1.2.2.

Leverage DFW International Airport’s new nonstop destinations in foreign countries to cultivate business relationships in other markets, including partnerships with the Chamber and DFW’s “Connecting the World” marketing initiative. Continue to work and invest in relationships with DFW International Airport, regional and state economic development efforts, and Irving business executives to set up trade missions to new nonstop destinations, beginning with visits to the most recent additions (Beijing, Abu Dhabi, Qatar).

1.3. DIVERSITY. Leverage Irving’s diverse citizenry and its global business leadership to establish the community as the premier international city in the Metroplex.

UPSTATE SOUTH CAROLINA: INTERNATIONAL BUSINESS GROWTH Upstate South Carolina has succeeded in international business development thanks in large part to the Upstate SC Alliance’s focus on making and leveraging connections. The region’s major expansions in recent years include BMW’s announcement (March 2014) of a $1 billion, 800-job expansion of an existing automotive plant in Greer, SC. Toray, a Tokyo-based manufacturer, also announced in February 2014 a $1 billion investment that will create 500 new jobs in Spartanburg County. The Upstate SC Alliance also maintains a close relationship with the South Carolina Department of Commerce. Together, the two organizations regularly conduct industry-specific trade missions. One of the region’s unique assets is the International Center of the Upstate. The Center provides relocation assistance, language programs, cultural exchanges, and other services to promote cross-cultural education and understanding among local and international residents of Upstate South Carolina.

1.3.1.

Work with the Irving International Trade Development and Assistance Center to test the concept of an international soft landing center for foreign-based startups.

1.3.2.

Promote the current international mix of companies already in Irving to build on existing successes and make connections that could lead to further foreign direct investment.

1.4. EXISTING BUSINESSES. Work with existing major corporations to identify specific countries to target for foreign direct investment (FDI). 1.4.1.

Build and leverage local relationships with foreign-based firms (NEC, Nokia, Siemens, Hilti, and others) to promote Irving as a destination for new investment and jobs by making connections to business leaders in foreign markets.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 6

CITY OF IRVING, TX

1.4.2.

Strategically participate in international conferences and events, both in partnership with the Dallas Regional Chamber and TexasOne efforts and as a stand-alone Irving effort. Use these trips to make visits to specific companies based in the hosting city.

1.4.3.

Continue and expand on the international trade work being led by Irving’s International Trade Development and Assistance Center.

1.4.4.

Expand the capacity of the International Trade Development and Assistance Center to increase international business for Irving-based firms. 

Many of Irving’s existing corporations operate primarily in the US but are pursuing growth strategies centered on entering specific international markets. Michaels Stores offers a good example of this with their current global expansion plans.



The City and Chamber can help by leading trade missions that include Irving-based firms to open up business conversations in designated foreign markets.

1.5. EXPERTISE. Develop international expertise around specific industries. 1.5.1.

1.5.2.

Utilize resources such as The Economist magazine’s Economist Intelligence Unit (EIU) and its Country Reports, which provide analysis of political and economic trends for nearly 200 countries, including a two-year forecast. Begin with Irving’s strongest sectors (telecom, finance & insurance, professional services, oil & gas, health care) and make connections with foreign-based firms within these sectors.

METRO ATLANTA CHAMBER: GLOBAL COMMERCE COUNCIL Through its Global Business Growth team, the Metro Atlanta Chamber (MAC) offers industry expertise and site selection services—including analyzing available incentives, matching companies with needed professional services, and identifying research and academic resources—to international companies looking to expand in metro Atlanta. One key to the program’s success is the Global Commerce Council. Comprised of 300 members representing some of the region’s largest employers, including Delta Air Lines and Georgia-Pacific, the council meets every other month and hosts highprofile events throughout the year. Council members make connections locally and globally in support of three objectives: 

Attracting foreign investment and jobs into metro Atlanta



Helping Atlanta-area companies expand their business abroad



Helping newly landed foreign companies continue to grow in Atlanta

Council members are surveyed to capture as much detail as possible about their areas of expertise and other information, including languages spoken within the company. This information is entered into a secure database which allows MAC to quickly provide a foreign company looking to invest in the region with industry-specific contacts.

1.6. INTERNATIONAL TALENT. Establish Irving as the premier city in the Dallas-Fort Worth metro area for international talent. 1.6.1.

Create an ongoing dialogue to enhance the multicultural environment in Irving through conversations between local and regional organizations representing diverse communities.

1.6.2.

Continue to build stronger linkages between the Partnership and other organizations (e.g., Irving Hispanic Chamber of Commerce, the US-India Chamber of Commerce, the US-Mexico Chamber of Commerce, the Greater Dallas Asian American Chamber of Commerce, and others) to make connections for global business activities in trade and foreign direct investment.

1.6.3.

Cultivate relationships with national/international organizations with headquarters in Irving (e.g., Young Presidents Organization, National Society of Hispanic MBAs, Electronic Security

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 7

CITY OF IRVING, TX

Association, American College of Emergency Physicians) to assist with international business connections. 1.6.4.

Utilize the EB-5 visa program as a way to attract foreign talent and investment into Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 8

CITY OF IRVING, TX

INITIATIVE 2. ENTREPRENEURSHIP & INNOVATION Create a dynamic local environment for entrepreneurship, innovation, and research & development activities. Not every community can rightfully claim to be a hub of innovation, yet every community competes for innovative firms and creative individuals. Irving has an established track record, especially with large corporations focused on developing new technologies (e.g., Verizon, AT&T, Microsoft, NEC, Frontier Communications, Sprint-Nextel, Nokia). The city should continue its efforts to support these corporations and attract additional large, technology companies. Another area of opportunity is the expansion and recruitment of young, highgrowth firms.

FOCUS AREAS 

Heritage Crossing Innovation District



5G mobile technology



Innovation events at Irving Convention Center, such as a 5G mobile technology summit Encourage innovation within existing firms

 

Use the City of Irving as a policy driver to support entrepreneurship

STRATEGIES 2.1. HERITAGE CROSSING INNOVATION DISTRICT. Create an “Innovation District” in Irving’s Heritage Crossing District. 2.1.1.

Prioritize public policies (e.g., zoning and land use regulations) and infrastructure investments that make the Heritage Crossing Innovation District more attractive to entrepreneurs and startups.

2.1.2.

Designate the Heritage Crossing Innovation District as the first “fiberhood” in the Metroplex, with access to ultra-high-speed internet as a way to attract technology startups and entrepreneurs. (See KC Startup Village example on the following page).

2.1.3.

Create marketing efforts that target specific types of businesses to expand and relocate into this district.

2.1.4.

Work with the local real estate community to establish an Innovation Center that includes coworking space for entrepreneurs, startups, and freelancers in this district.

2.2. 5G MOBILE TECHNOLOGY. Establish Irving as the top location in the US for 5G innovation. 2.2.1.

2.2.2.

2.2.3.

The City, Chamber, and ICVB should work with the major telecom companies in Irving (AT&T, Nokia, Sprint-Nextel, Verizon, Frontier Communications) and in the surrounding region (Samsung Telecommunications America, Alcatel-Lucent, Ericsson) to pursue a “Global 5G Innovation Conference” in Irving, held at the Irving Convention Center at Las Colinas. 

Move quickly to build this event because similar events are already taking place.



The “5G Forum USA” conference was held in April 2015 in Palo Alto, CA and the “5G World Summit” was held in June 2015 in Amsterdam, Netherlands.

Position Irving as the 5G Innovation Zone or Corridor. 

This should be a standalone Irving effort (not in partnership with other Metroplex cities), but should include other major telecommunications companies in the Metroplex.



Attract investment in deployed 5G technology as a national test location.

In partnership with Verizon’s Hidden Ridge development adjacent to the DART Orange Line, launch the nation’s first 5G TOD (transit-oriented development).

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 9

CITY OF IRVING, TX

2.3. PUBLIC POLICIES. Encourage the growth of entrepreneurship and innovation through public policies and programs. A recent study, City Initiatives for Technology, Innovation and Entrepreneurship (available at www.citie.org), provides useful examples of how city leaders are developing policies to catalyze innovation and entrepreneurship. 2.3.1.

Sponsor events relevant to startups and highgrowth sectors at the Innovation Center.

2.3.2.

Support access to high-speed internet throughout the community.

2.3.3.

Promote entrepreneurship by serving as a “connector” between local entrepreneurs and the necessary resources they seek (e.g., talent, capital, networks).

2.3.4.

Encourage Irving ISD and other local K-12 educational institutions to incorporate entrepreneurship into their academic curricula.

2.4. HIGH-GROWTH FIRMS. Target high-growth firms (with expansion plans) from the Dallas-Fort Worth Metroplex, other large Texas metro areas (Austin, Houston, San Antonio), and other major US markets (New York, Chicago, Los Angeles). 2.4.1.

Utilize the following resources to identify innovative high-growth firms within industries that are a natural fit for Irving:

KC STARTUP VILLAGE When Google Fiber was first introduced in Kansas City in 2012, service was originally offered exclusively in residential areas. To extend highspeed, low-cost internet access to the city’s growing community of startups, a handful of entrepreneurs purchased homes in the Spring Valley neighborhood, the country’s first-ever Google “fiberhood.” Ultimately labeled the Kansas City Startup Village (#KCSV), this grass-roots initiative has grown to include 25 companies located in roughly a dozen houses, including two highly visible properties: Homes for Hackers and the Brad Feld Fiber House. Along with the unique access to gigabit internet speeds, a dense community of like-minded entrepreneurs, and the opportunity for serendipitous “collisions,” KCSV promotes the city’s affordable cost of living to encourage aspiring entrepreneurs to set up shop in Kansas City. While KCSV is completely entrepreneur-led, its creation coincided with the Greater Kansas City Chamber of Commerce’s “Big 5” initiative, which originated from a months-long visioning process started in July 2011. The initiative focuses local talent and resources on five community-based projects, including making Kansas City “America’s Most Entrepreneurial City.” In addition to KC Startup Village, Kansas City is home to the Ewing Marion Kauffman Foundation, as well as a number of incubators, accelerators, and other entrepreneurship-focused initiatives.



Inc. 5000 (Fastest-Growing Private US Companies)



Fast Company Magazine (World’s Most Innovative Companies)



Forbes (World’s Most Innovative Companies)



PWC Moneytree report (for identifying recent recipients of venture funding)



MIT Technology Review (Smartest Companies)



Thomson Reuters (Top 100 Global Innovators)

2.5. SMALL BUSINESS SUPPORT. Link small business growth to the city’s existing large corporations. 2.5.1.

Create a central database for RFPs from large Irving corporations seeking subcontracting or vendor services.

2.5.2.

Make the database available to all companies in Irving, providing opportunities for young and emerging companies. 

Expand the Chamber’s “Business Connection” program for this purpose.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 10

CITY OF IRVING, TX

2.5.3.

Irving small businesses could become “prequalified” to serve as a vendor to large corporations.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 11

CITY OF IRVING, TX

INITIATIVE 3. HIGHER EDUCATION RESEARCH & DEVELOPMENT Establish centers of excellence in Irving through higher education and industry partnerships. Link these to entrepreneurship and actively pursue new research & development opportunities. Centers of excellence are typically collaborations between FOCUS AREAS higher education institutions and businesses, leveraging the  Center of excellence focused on target unique assets found within a community to support the industry advancement of research or training within a specific industry  Expand higher education research & or focus area. They often serve as a magnet for industry innovation expertise and are dedicated to the success of companies  Connect Irving firms to regional higher within a community. They also provide leadership, best education assets practices, research, support/training for entrepreneurs and current/future employees within one or more industries. Irving has a unique opportunity to create a higher education and industry collaboration. This is possible thanks to its role as a major business and innovation center within the Metroplex and its proximity to local and regional higher education institutions, including the University of Dallas and North Lake College. Successful centers of excellence will build on the city’s higher education and industry strengths to establish Irving as a regional and national hub for talent, innovation, and business growth within a set of specialized industry niches.

STRATEGIES 3.1. CENTERS OF EXCELLENCE. Establish a task force of local and regional academic and business leaders to explore the potential to create centers of excellence. 3.1.1.

3.1.2.

3.1.3.

Centers should be led by a consortium of colleges and universities involving the University of Dallas, North Lake College, other Metroplex higher education institutions, and potentially other state or national institutions. Centers should involve multiple Irving businesses and other Metroplex businesses, focused on industry clusters in which Irving has a competitive advantage and in which innovation is a key factor for business success. The task force should consider the following potential focus areas for centers: 

5G mobile technology



Private sector cyber security



Corporate training methods & software



Smart Cities infrastructure

ECONOMIC DEVELOPMENT STRATEGIC PLAN

CENTERS OF EXCELLENCE Centers of Excellence are defined by three key ingredients: 1. A consortium among multiple higher education institutions and/or research organizations 2. Partnerships between higher education and industry 3. A focus on a specific industry, a single research topic, or a particular training program Examples of successful centers of excellence include:  The UT Center for Identity in Austin, TX 

The Research Triangle Materials Research Science and Engineering Center in Durham, NC



The Cyber Center of Excellence in San Diego, CA

PAGE | 12

CITY OF IRVING, TX

INITIATIVE 4. BUSINESS RETENTION & EXPANSION Reinforce and invest in Irving’s business retention & expansion (BRE) program as a cornerstone of the community’s economic development efforts. Irving is fortunate to have such an impressive roster of existing FOCUS AREAS businesses, large and small, representing many different  Establish formal industry cluster working industries. Because of the city’s strong base of existing groups for key sectors employers, the greatest opportunities for new job growth and  Expand business visitation program capital investment will come from a robust business retention and expansion (BRE) program. Without a strong foundation  Strengthen engagement of local corporate executives that properly engages and supports the city’s current businesses, other approaches aimed at bringing in new companies, investment, and talent cannot succeed. Irving’s current economic development program needs to be broadened with more activities, involvement, and measurable outcomes. Additionally, an active BRE program protects against company exits to competitor cities in the region.

STRATEGIES 4.1. INDUSTRY CLUSTER WORKING GROUPS. Work through the Chamber’s HR Advisory Council to establish formal industry cluster working groups for these target sectors: technology (telecommunications, software, industrial technology/advanced manufacturing) corporate operations & related services (corporate HQs, corporate training, professional services), and health care. 4.1.1.

Hold regular meetings to provide forums for communication, relationship building, and information gathering.

4.1.2.

Identify cross-cutting issues that affect the sector.

4.1.3.

Craft solutions, monitor the issues, and track progress towards addressing these issues.

BUSINESS RETENTION & EXPANSION A strong business retention and expansion program (BRE) is crucial to the success of an economic development organization. The US Small Business Administration estimates that roughly 60% of new jobs in a community are created through the expansion of existing businesses. For Irving, as elsewhere, existing businesses are the engine of the economy and its most valuable asset. A solid BRE program also supplements recruitment, not only because of job creation, but because it is difficult to recruit a new company if existing business are not thriving, especially if they have issues with the business climate.

4.2. EXISTING BUSINESS DATABASE. Maintain and grow Irving’s database of existing businesses. 4.2.1.

The database should be evaluated and expanded on a regular basis with a focus on companies that serve external markets or are suppliers to Irving’s primary employers.

4.3. BUSINESS VISITATION PROGRAM. Strengthen Irving’s business visitation program by expanding outreach efforts with C-level executives. 4.3.1.

Ensure that staff resources are available to meet regularly with Irving’s large employers.

4.3.2.

Prioritize business visits by employer size, employer growth rates, target industries, and lease terminations.

4.3.3.

Structure the visits to gauge the abilities and needs of local businesses in order to operate successfully and to expand in Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 13

CITY OF IRVING, TX

4.3.4.

Structure BRE visits to serve several purposes:

EXISTING BUSINESS CONSORTIUM: BIRMINGHAM BUSINESS ALLIANCE



Educate the company about the Partnership and its services;



Collect answers to a standard series of questions in order to quantify challenges the company is facing;



Identify opportunities to aid local businesses that are facing challenges, thereby retaining those companies in the community;



Identify companies that are expanding operations within and outside of Irving;



Probe supplier attraction opportunities that would benefit existing companies; and



Identify companies considering relocating outside of the community.



Capture testimonies from local companies about why they have chosen Irving as their business location.

The Birmingham Business Alliance (BBA) was created by the successful merger of the Birmingham Regional Chamber of Commerce and the Metropolitan Development Board (MDB). As part of its Regional Existing Business Consortium, the BBA leverages local and regional partners (utilities, government agencies, nonprofit organizations) to conduct site visits as part of its business retention and expansion program. The BBA trains these partners and they conduct business visitations. This allows the BBA to have a much broader reach and bigger impact than would otherwise be possible. Also, this approach helps to control the quality of site visits and to standardize the data collected. The BBA aggregates the information collected through these site visits to identify macro-trends.

4.3.5.

Develop a questionnaire to capture critical information from business executives during visits. The information captured during the visit should be routinely entered into the employer database for future reporting.

4.3.6.

Continue to engage local stakeholders (e.g., utility companies, chambers of commerce, city staff) as active partners in the BRE program, including in business visitations, to stretch the program to achieve greater results.

4.3.7.

Pursue aggressive monthly, quarterly, and annual goals for business visits in the BRE program.

4.4. BRE TOOLS. Utilize a variety of tools and methods to enhance the community’s BRE program. 4.4.1.

Employ the use of Customer Relations Management (CRM) software to better monitor business issues and concerns and to share information between Partnership organizations. There are several companies that offer CRM products tailored to economic development organizations.

4.4.2.

Continue to use the City’s annual online business survey as a means for keeping in touch with local businesses and documenting specific challenges, opportunities, and/or expansion plans.

4.4.3.

Include questions on the City survey for employers regarding their attitude toward the business climate, talent availability, and workforce quality in Irving.

4.4.4.

Utilize local experts to assist businesses in areas such as funding, international trade, lean manufacturing, succession planning, and sales and marketing.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 14

CITY OF IRVING, TX

4.5. CEO ENGAGEMENT. Restructure the Chamber’s existing business executive engagement (including “CEO Breakfast” events) and the Mayor’s CEO Advisory Council to address the initiatives of this plan. 4.5.1.

Encourage business leaders to interact with local partners on economic development strategy, small business assistance, talent management, and education. Informal roundtables stimulate topics of discussion that a survey or questionnaire cannot.

4.5.2.

Cultivate relationships with CEOs of local firms that are based outside of Irving to create an open channel of communication, including annual visits to out-of-market corporate headquarters.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 15

CITY OF IRVING, TX

INITIATIVE 5. DOMESTIC BUSINESS RECRUITMENT Strengthen Irving’s business recruitment program through partnerships with existing businesses and by strengthening ties with business allies for regional and state recruitment activities. A major opportunity for Irving will come from a strong and FOCUS AREAS aggressive national recruitment program that brings new jobs and investment into the city. The Greater Irving-Las Colinas  Relationships with business decision makers Chamber of Commerce is Irving’s lead economic development  Leverage existing businesses for recruitment partner in charge of recruiting new businesses. Local and  Work closely with regional & state partners regional economies cannot thrive without bringing in new  New marketing materials & activities focused companies, investment, and talent. A focused approach to on target industries recruit companies with site selection requirements that are compatible with Irving’s infrastructure and resources can yield immediate positive results for the community. This is especially important given the high level of business expansion and relocation activity taking place across the Metroplex.

STRATEGIES 5.1. RELATIONSHIP DEVELOPMENT. Cultivate relationships and networks with business decision makers for the recruitment of new jobs and investment into Irving, IRVING RANKED #1 CITY TO START focusing on target industries. YOUR CAREER (WALLETHUB) 5.1.1.

Respond to all business recruitment/expansion prospect leads within 24 hours, using a co-signed (by the Chamber and the City) letter of interest to leads.

5.1.2.

Expand Irving’s database of real estate developers, commercial and industrial brokers, and site consultants.

5.1.3.

Conduct at least four recruiting trips/marketing missions per year (once each quarter) to meet with company executives in out-of-state markets with a high concentration of firms in target industry clusters. 



5.1.4.

Irving was rated the number one city to “Start a Career” in a comparison by WalletHub of the 150 largest US cities in their 2015 “Best and Worst Cities to Start a Career”. The ranking uses 19 data points organized into two scales: “Professional Opportunities” and “Quality of Life”, with Professional Opportunities receiving double weight. In the more important of the two scales, Professional Opportunities, Irving ranked number one (the city ranked number 38 in the Quality of Life scale), thanks to its high marks in the following data points:  Number of entry-level jobs per 10,000 inhabitants  Monthly median starting salary (adjusted for cost of living)

These trips should focus on regions where HQ offices of major corporations with a significant Irving presence are located.

 Annual job growth rate (adjusted for population growth)

Expand partnerships for these trips with TexasOne, the Dallas Regional Chamber, and DFW International Airport.

 Workforce diversity

 Median income growth rate  Economic mobility  Unemployment rate  WalletHub “Entrepreneurial Activity” ranking

Host a familiarization (“fam”) tour in Irving that brings in corporate real estate executives, site location consultants, and commercial and industrial brokers to showcase Irving as a viable option for new investment and business expansion.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 16

CITY OF IRVING, TX

5.1.5.



Focus the fam tour on a specific business opportunity, such as redevelopment of the former Texas Stadium site or another potential TOD property.



As part of the fam tour, include a mix of Metroplex and out-of-state real estate professionals/executives.

Continue to conduct regional “road shows” to commercial real estate and development firms in the Metroplex.

5.2. EXISTING BUSINESSES. Regularly engage Irving’s existing employers to identify opportunities for the recruitment of new companies into the community. 5.2.1.

Strengthen the Chamber’s efforts to engage business executives (e.g., Technology Leadership Council) by bringing together a small group of 8 to 12 executives to discuss emerging trends that could lead to new opportunities for business attraction within the city’s target industries.

5.2.2.

Work closely with Irving’s existing employers to identify opportunities for the recruitment of suppliers or service providers who could benefit existing employers if they were also located in Irving.

5.3. PARTNERS. Continue to build strong relationships and leverage partnerships with regional and state business recruitment efforts. 5.3.1.

Maintain an active presence at regional business recruitment efforts with the Dallas Regional Chamber of Commerce and its DFW Marketing Team.

5.3.2.

Continue the Chamber’s participation in state-wide business attraction initiatives through Team Texas, TexasOne and the Governor’s Office.

5.4. MARKETING MATERIALS. Create new marketing materials for the Partnership specific to Irving’s strongest assets for the growth and expansion of firms in target industries. 5.4.1.

Create high-quality, flexible (online and print) marketing packages that tell the story of why Irving is the right location for businesses within each target industry.

5.4.2.

Each marketing package should be simple, yet powerful, and be unique to each target industry. The package should contain the following: 

A map and detailed listing of existing firms located in Irving within the industry.



A similar map and listing of Irving firms in related support industries.



A snapshot of local/regional workforce strengths within the sector, highlighting key occupations.



Unique programs, infrastructure, innovation assets, and applicable local or state incentives.



Testimonials from local executives and firms that have relocated to Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 17

CITY OF IRVING, TX

INITIATIVE 6. ECONOMIC DEVELOPMENT TOOLS & RESOURCES Employ more aggressive incentives to encourage job creation and investment. The tools required to be competitive operate within an organizational framework. An effective community brings together all of the players in economic development. While the implementation of this plan rests with the City of Irving, it requires close collaboration with the Greater Irving-Las Colinas Chamber of Commerce, the Irving Convention & Visitors Bureau, and other partners (the Irving Hispanic Chamber of Commerce, Dallas County Utility and Reclamation District, the Las Colinas Association, Irving ISD, Coppell ISD, Carrollton-Farmers Branch ISD, the University of Dallas, and North Lake College, among others).

FOCUS AREAS 

Re-energize the Irving Economic Development Partnership



Create a new funding source for incentives



Enhance Irving’s incentives aimed at business expansion & recruitment



Recalibrate incentive policies to accelerate revitalization in target geographies



Build a robust research program to support economic development activities

The ambitious new initiatives, programs, and priorities highlighted in this plan will require a revitalization of Irving’s Economic Development Partnership (IEDP), including a long-term investment commitment. This structure will remain a community partnership, with investors from the public and private sector, but with greater accountability and stronger representation by the City of Irving. This will support the city’s mission to provide exceptional services to compete with other Metroplex cities for new jobs and capital investment. This plan may require the creation of new funding sources for economic development and a recalibration of Irving’s incentive policies. Most of Irving’s standard incentives, such as tax abatements and TIRZ (tax increment reinvestment zones) are comparable to other Metroplex cities, but there is one major difference between Irving and its competitor communities. The lack of structured annual contributions to the dedicated fund for economic development incentives puts Irving at a significant disadvantage for attracting new jobs and investment. A large number of Metroplex cities have a Type 4A and/or Type 4B sales tax that provides a large source of annual funds for economic development. Irving does not have this option because it contributes a full one-cent of its sales tax to the DART system. This challenge is counter-balanced by the city’s high quality transit access to the rest of the region—the DART light rail Orange Line to DFW International Airport and downtown Dallas and the TRE commuter rail line to downtown Dallas and downtown Fort Worth. As corporate relocations/expansions continue to prefer mixed-use, transit-adjacent locations, this will serve Irving well over the long run. Fortunately, there are other options to level the playing field between DART and non-DART cities. The City of Irving also should annually reinvest in the incentive fund to better compete for investment with other Metroplex communities.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 18

CITY OF IRVING, TX

STRATEGIES 6.1. IRVING ECONOMIC DEVELOPMENT PARTNERSHIP. Clarify and formalize the roles and responsibilities of economic development partners. 6.1.1.

Work with each of Irving’s economic development partners (City of Irving, Greater Irving-Las Colinas Chamber of Commerce, Irving Convention & Visitors Bureau) to ensure that processes are streamlined, transparent, well documented, and well understood. A more detailed overview of this recommendation is included in the plan’s Organizational Framework section.

6.1.2.

Create a unified brand for use in all economic development marketing materials that is representative of the Partnership and its partner organizations.

6.1.3.

Encourage firms receiving public incentives to become investors in the Partnership.

6.2. FUNDING FOR ECONOMIC DEVELOPMENT OPERATIONS. Re-energize the Irving Economic Development Partnership with expanded funding, in concert with the Chamber’s forthcoming capital campaign. The Opportunity Austin capital campaign—a partnership of the City of Austin and the Austin Chamber of Commerce—is a successful approach to regional economic development (shown in the sidebar to the right). OneRedmond is successful in the suburban area of greater Redmond, Washington, within the context of the larger Seattle region. 6.2.1.

Annually benchmark the level of funding and resources for the Partnership against communities in the Metroplex that regularly compete with Irving for new jobs and capital investment.

6.2.2.

Explore the potential for generating a higher level of private sector support for the Partnership through a capital campaign. Coordinate the funding streams for economic development, with public and private dollars, to ensure Irving’s long-term competitiveness.

6.2.3.

Evaluate resources needed for staff to support the high levels of economic development prospects, and the anticipated future high workload resulting from an expanded program.

OPPORTUNITY AUSTIN: CAPITAL CAMPAIGN Opportunity Austin was launched by the Austin Chamber of Commerce in 2004 as a five-year economic development initiative aimed at fostering job-creating investment in the five-county Austin metro area. This regional strategy aimed to create 72,000 regional jobs and increase regional payroll by $2.9 billion. To implement the strategy, the regional business community committed to invest $14.4 million. From 2004 through the end of 2012, an estimated 190,900 new jobs were added to Austin's regional economy. Regional payroll increased by $9.9 billion during this period, along with increases in per capita income and average annual wages. In December 2012, Opportunity Austin 3.0 was launched, with a set of new initiatives focused on improving the region’s Economy, Talent, and Place. Top priorities include boosting economic diversification to strengthen the economy, deepening the talent pool through development and attraction, and keeping the Greater Austin region attractive to entrepreneurs, business leaders and site selectors through expanded advocacy on issues such as a comprehensive regional transportation system and regional collaboration.

6.3. INCENTIVES FOR BUSINESS RECRUITMENT & EXPANSION. Establish a set of public incentive policies and programs directly aimed at growing and recruiting firms in Irving’s target industries, and attracting quality jobs for Irving residents. 6.3.1.

Evaluate options for building the economic development incentive fund.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 19

CITY OF IRVING, TX

6.3.2.

Review the City’s incentives relative to the target industries and the City’s performance metrics.

6.3.3.

Establish minimum thresholds for both wages and capital investment. Provide incentives for projects that create jobs with wages that pay a determined percentage (such as 25 percent) above the industry median wage and/or above Irving’s overall median wages.

6.3.4.

Create an anchor employer program that incentivizes Irving’s existing businesses if they play a significant role in helping recruit a key supplier, service provider, or customer business into the city (similar to the State of Rhode Island program).

6.3.5.

Specify target industries (using NAICS codes) that are eligible to receive certain incentives (similar to Arlington).

6.3.6.

Specify the levels of capital investment necessary for firms to receive incentives.

6.3.7.

Maintain mandatory annual “certificates of compliance” for any businesses receiving incentives to ensure that they meet or exceed the job creation and capital investment requirements. These should be in effect for the duration of the incentives term (i.e., each year of a 5-year or 10-year tax abatement).

6.3.8.

Continue using software programs to measure the economic and fiscal impacts of providing incentives. These tools are used to gain a comprehensive understanding of the costs and benefits of a business expansion or investment.

6.3.9.

Encourage businesses to hire locally as part of Irving’s incentive package. 

While not a formal requirement, preference should be given to companies who make a demonstrable effort to employ Irving residents.



Work with local organizations (e.g., the Chamber, Irving ISD, North Lake College) to expand the pool of candidates for jobs at new or expanded Irving facilities.

6.4. INCENTIVES FOR REVITALIZATION. Enhance the community’s incentives aimed at revitalizing neighborhoods and commercial corridors in strategic development areas. 6.4.1.

Review the Neighborhood Housing Incentive Program to consider extending it beyond the initial set of neighborhoods. Include South Irving neighborhoods, especially the Heritage Crossing District, to spur new investment.

6.4.2.

Expand the geographic reach of the Corridor Enhancement Incentive Program to cover all prioritized sites.

6.4.3.

Revise the Small Business Expansion Incentive Program to encourage the recruitment of small businesses from outside of Irving, especially in prioritized sites like the Heritage Crossing District.

6.4.4.

Explore the feasibility of establishing TIRZ districts for each of the city’s prioritized sites, wherever they are not already in place.

6.4.5.

Create a new retail sales tax rebate for materials purchased locally for use in approved revitalization projects.

6.5. RESEARCH CAPACITY. Enhance data collection and analysis for the community’s economic development activities. The intersection of real estate, demographics, industry trends, and international development requires a deeper understanding of how these relate to opportunities in Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 20

CITY OF IRVING, TX

6.5.1.

Advance skills of research staff to develop a deep knowledge of various business aspects of Irving.

6.5.2.

City of Irving research staff should use a data-driven approach to support the Chamber’s business retention, expansion, and recruitment efforts.

6.5.3.

Maintain local data not tracked by paid subscription services.

6.5.4.

Create and regularly maintain an online dashboard with local real estate, demographic, and economic data. The Region 2000 Local Economy Dashboard for the Lynchburg, Virginia metro area is a good example of an online dashboard (www.region2000dashboard.org).

6.5.5.

Establish the Partnership as the “go to” place for any data on Irving.

6.5.6.

Publish relevant reports on Partnership organization websites.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 21

CITY OF IRVING, TX

INITIATIVE 7. EVENTS & CONFERENCES Support and leverage Irving’s hospitality assets and strategically enhance linkages between the City’s business recruitment program and its conference/event solicitation and promotion efforts. Many communities have weak ties between their economic FOCUS AREAS development program and their convention & visitors bureau.  Expand linkages between ICVB & Chamber to This can lead to missed opportunities for connecting the leverage hospitality sector for business hospitality sector to broader economic development outcomes, recruitment such as business recruitment and talent attraction. Irving is  Leverage Irving Convention Center fortunate to have a uniquely strong alliance between its  New festivals/events in Heritage Crossing tourism/event promotion efforts and its traditional economic District development activities. The Irving Convention & Visitors Bureau is an important partner and should continue to play a key role in the community’s economic development program. Moreover, Irving has significant advantages it can capitalize on to grow its hospitality industry and to leverage this sector for business recruitment including the Irving Convention Center, access to DFW International Airport and Dallas Love Field, and the large number of corporate training facilities located in the city.

STRATEGIES 7.1. IRVING CONVENTION CENTER. Work with the ICVB to expand on the economic development potential of the Irving Convention Center. 7.1.1.

Continue to work with the ICVB to attract a new convention center hotel adjacent to the Irving Convention Center.

7.1.2.

Support improvements to the physical connectivity and pedestrian infrastructure between the Irving Convention Center, the nearby DART Orange Line station, and surrounding developments in Las Colinas.

7.2. FESTIVALS IN IRVING. Leverage the city’s funding for promotion of its Heritage Crossing District and festivals and events in the area to introduce a higher level of interest and vibrancy in the city’s historical core. 7.2.1.

For this strategy to be successful, the city would need to allow temporary beer and wine sales in city parks and streets during festivals.

7.2.2.

Work with the Texas Musicians Museum and other key stakeholders to identify and pursue opportunities for distinctive new festivals and events in the Heritage Crossing District.

7.3. TARGETED CONFERENCES & EVENTS. Create new linkages between the Chamber’s business recruitment efforts and the ICVB’s conference/event promotion activities. 7.3.1.

Support the ICVB and its Board of Directors in its work to regularly convene a group of leaders from Irving’s hospitality sector to reveal opportunities to leverage the community’s visitor services industry (hotels, restaurants, and other businesses) to support the City and Chamber’s economic development programs.

7.3.2.

Identify industry associations within each target industry and encourage them to consider Irving as a destination for annual events and meetings.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 22

CITY OF IRVING, TX

7.3.3.

Target new events/conferences at the Irving Convention Center and Irving’s hotels that bring in key business decision makers from target industries.

7.3.4.

Work closely with the ICVB to identify trade shows and conferences held at the Irving Convention Center and at Irving’s hotels to determine which ones represent the best opportunity for business recruitment and marketing activities. Attend relevant trade shows and have a booth to distribute marketing material to attendees.

7.3.5.

Support the ICVB and the Chamber in their efforts to grow Irving’s corporate training sector by attracting meetings and other engagements of existing businesses.

7.3.6.

Use high profile events in Irving and the region as a way to cultivate relationships with business decision makers in the Metroplex and outside markets.

7.4. RESEARCH. Utilize the new City of Irving research director position to support the ICVB’s visitor attraction efforts. 7.4.1.

Support the ICVB in its ongoing efforts to determine the economic impacts of Irving’s hospitality sector and showcase the industry’s value to the local economy.

7.4.2.

Work with the ICVB to put in place a data-driven system that evaluates the business recruitment potential of each major conference and trade show.

7.5. INCENTIVES. Structure local incentive policies to support the community’s hospitality sector. 7.5.1.

Add guidelines for businesses receiving incentives to use “commercially reasonable efforts” to place all company-managed hotel room nights related to the company’s business activities at hotels located in the City of Irving.

7.5.2.

Expand the current ICVB Business Development Incentive Plan to include specific incentives for target industry events/conferences.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 23

CITY OF IRVING, TX

INITIATIVE 8. COMMUNITY BRAND & IMAGE Enhance Irving’s image as a place that combines business growth with richer residential and entertainment opportunities. In addition to business recruitment and expansion efforts, the FOCUS AREAS City of Irving and its partners should take steps to enhance the  Engage young professionals community’s image as a great place for businesses and residents. Engaging existing young professionals that live or  Manage Irving’s online & social media image work in Irving is a natural starting point, especially since the  Create a network of “connectors” to share city has a much higher percentage of young adults age 20 to positive stories about Irving 34 than the rest of the Metroplex (27 percent in Irving compared with 22 percent in the Metroplex as a whole). Gaining a better understanding of the desires and needs of local residents, especially young and mobile professionals, will be critical for the community’s success in promoting itself as a top destination for new jobs, investment, and talent. Other key demographic groups, such as empty nesters, should also be engaged by the city and its partners. To help support business development activities, the city should monitor and, where appropriate, influence Irving’s online and social media image.

STRATEGIES 8.1. ENGAGE YOUNG PROFESSIONALS. Regularly engage the many young professionals and other young adults living in Irving to gain a better understanding of the desires and needs of this key segment of the workforce. 8.1.1.

Work with the Chamber and young professionals groups existing in many of Irving’s large companies to design a survey to gauge the quality of life amenities in Irving.

8.1.2.

This can help the city understand which amenities are most critical for the attraction and retention of young, talented workers.

8.2. ONLINE & SOCIAL MEDIA. Use social media and technology solutions to manage and positively influence Irving’s online and social media image.

NORTHWEST ARKANSAS COUNCIL: DIGITAL AMBASSADORS INITIATIVE The Northwest Arkansas Council created the Digital Ambassadors initiative as a way to improve the region’s image and to disseminate information about the region in a cost-effective way. The program currently boasts more than 400 individual Digital Ambassadors. Each Digital Ambassador receives emails with new, exciting content to share on Facebook, Twitter, Instagram, and LinkedIn. The content includes information about regional job growth, quality of life amenities, educational achievements, the local economy, and other ways the metro area stands out. Digital Ambassadors are encouraged to share the content so that they can have a positive impact on how the outside world views Northwest Arkansas. The ambassadors earn points based on how often they’re active and how they share their messages, and top participants are eligible to win monthly prizes. The program is a good avenue for enhancing the internal image of Northwest Arkansas. It also helps local residents and businesspeople become more aware of the positive aspects of living and working in Northwest Arkansas.

8.2.1.

Actively manage Irving’s page on Wikipedia to ensure its accuracy and to maintain its emphasis on the city’s positive elements.

8.2.2.

Ensure that the information being communicated about Irving through online and social media channels is positive, consistent, and accurate. This includes any information shared through regional media outlets.

8.3. AMBASSADORS & CONNECTORS. Work with the Chamber and ICVB to create an Irving Digital Ambassadors Program that utilizes a network of “connectors” who share positive stories about Irving online

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 24

CITY OF IRVING, TX

and through social media. Social Toaster (www.socialtoaster.com) provides a platform for structuring and managing such a program. 8.3.1.

Identify who the connectors and thought leaders in Irving are, and encourage them to be digital ambassadors for the city. Identify leading individuals within key stakeholder groups (e.g., young professionals, empty nesters) to serve in an ambassador/connector capacity.

8.3.2.

Develop content that portrays a positive image of the local business climate and highlights opportunities for business and talent to be successful in the community.

8.3.3.

Create an incentive system that rewards digital ambassadors for actively participating.

8.3.4.

Promote the program across the City, Chamber, and ICVB’s local existing communications channels, including traditional and social media.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 25

CITY OF IRVING, TX

ORGANIZATIONAL FRAMEWORK The ambitious new initiatives, programs, and priorities highlighted in this plan will require an enhanced commitment from the public and private sectors. Irving should consider the need for additional staff and funding with more aggressive participation in economic development by the private sector. The City of Irving and the Greater Irving-Las Colinas Chamber of Commerce are important leaders for economic development in the community. The success of this strategic plan relies on cooperation among the members of the Irving Economic Development Partnership (IEDP), which consists of the City of Irving, the Greater Irving-Las Colinas Chamber of Commerce, the Irving Convention & Visitors Bureau and the Las Colinas Association. However, the City of Irving has the primary role of implementing the initiatives in the strategic plan with the support from the Irving Economic Development Partnership, specifically the contractual relationship with the Greater Irving-Las Colinas Chamber of Commerce. The City of Irving should build on the existing public-private partnership structure with the Greater Irving-Las Colinas Chamber of Commerce that manages the Irving Economic Development Advisory Council (EDAC) on behalf of the Irving Economic Development Partnership. This is accomplished in collaboration with industry leaders advancing, creating and promoting economic development in Irving.

IRVING ECONOMIC DEVELOPMENT ADVISORY COUNCIL (EDAC) The EDAC will be responsible for: 

Monitoring the implementation of the strategic plan;



Advising the Irving Economic Development Partnership (IEDP), specifically the City of Irving and Greater Irving-Las Colinas Chamber of Commerce staff regarding strategic actions, financing/budgets, and program goals;



Assisting with economic development efforts; and



Providing long-term guidance on business industry issues.

The EDAC will review programs and initiatives with staff and will make recommendations to the Irving Mayor and City Council as well as the Greater Irving-Las Colinas Chamber of Commerce Board of Directors. The EDAC is managed by the Greater Irving-Las Colinas Chamber of Commerce in partnership with the City of Irving Economic Development Department. EDAC membership should be limited to organizations, businesses and individuals with a vested interest in supporting economic growth in Irving. The EDAC will serve as a resource for cross sector industry feedback related to economic development trends, Irving-Las Colinas needs or opportunities, and a source for information such as emerging industries. The following is a suggested list of organizations that should be considered to serve on the EDAC: 

Board member representative from the Greater Irving-Las Colinas Chamber of Commerce



Board member representative from the Irving Convention & Visitors Bureau



Board member representative from the Irving Hispanic Chamber of Commerce



Board member representative from the Las Colinas Association (LCA)



Board member representative from Dallas County Utility Reclamation District (DCURD)



Leader from an Irving-based higher education institution



Board member from City of Irving Tax Increment Finance District #1 and/or #6



Member of South Irving Task Force

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 26

CITY OF IRVING, TX



Board member representative of the Valley Ranch Association



Fortune 1,000 HQ executive from an Irving-based firm



Executive from a foreign-based corporation with a major Irving presence



Executive from a Fortune 500 company based outside of Irving, but with a major Irving presence



Executive from a real estate development firm or commercial real estate brokerage with market knowledge of Irving and the Dallas-Fort Worth Metroplex



Technology entrepreneur or executive of a high-growth tech firm with an Irving presence



Business executive at-large representing one of Irving’s target industry clusters

PERFORMANCE METRICS Continuous performance evaluation will be an essential part of the Irving Economic Development Partnership’s (IEDP) work plan. The organization will track as many quantifiable activities and results as possible with the goal of transparency and clear communication to the organization’s investors and the community at large. This tracking will be done to demonstrate what the organization is doing and the impact that its work is having on the community. The IEDP’s objectives in reporting results are twofold: 1) present organizational accomplishments in an easily understood format; and 2) educate investors and the community about the process of economic development. Results will be reported on a quarterly basis. The Partnership’s metrics will be broken down into the following three categories: 

Inputs. These measure resources dedicated to implementing the strategic plan.



Outputs. These measure the volume of work completed and specific activities of the Partnership.



Outcomes. These measure the results and benefits of the work completed to influence specific business decisions to locate or expand in Irving. Outcome results will be reported over a multi-year time frame since individual business retention, expansion, and recruitment decisions often take more than one calendar year.

Input metrics to be tracked include: 

Development of target industry information, as well as detailed economic and demographic data for Irving



Expanded target industry databases



Creation of marketing materials to promote the business case for Irving and the services of the Partnership



Development of the website to provide valuable information and assistance to site selectors and company decision makers



Collaboration with economic development partners in the region and state, building on the Partnership’s role of providing client-based economic development services to businesses seeking new or expanded operations



Execution of strategies to sustain and expand funding for the Partnership’s programs over the next three to five years targeting new private sector investors

Output metrics to be tracked include: 

Businesses visited/surveyed as part of the BRE program



The identification and pursuit of business retention, expansion, or recruitment leads

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 27

CITY OF IRVING, TX



Facilitation of media placements regarding Irving as an exceptional place for business



Target industry trade shows attendance



Meetings with companies that have operations outside of the region and promoting the community as an exceptional place for business



Meetings with national site consultants and senior-level commercial real estate brokers



Execution of business assistance research requests



Meetings with local businesses, focusing on Irving’s target industry clusters



Attendance of networking events and speeches made to target audiences in the region and state

Outcome metrics to be tracked include: 

New job creation



New capital investment



Average wages of new jobs created



Local tax base growth



Vacancy rates and rental rates for existing commercial office and industrial space



Amount of new commercial office and industrial space constructed

The adoption of target performance measures, especially under the outcome metrics category, will need to balance two competing interests: 1) generating excitement from the Irving City Council, local residents, and potential investors in the IEDP by setting ambitious targets for new job creation and investment; and 2) providing realistic expectations and aiming for achievable targets. To address these two interests, we recommend setting ambitious goals for specific numbers of new jobs, capital investment, and average wages, while also setting benchmark goals for Irving to outperform the DFW Metroplex, Texas, and national economies in terms of job creation, capital investment, and wage growth. This will help to protect Irving from unexpected downturns in the state or national economy that could limit the potential for economic growth locally. It is difficult to directly connect the success of any economic development strategic plan to local-level macroeconomic statistics (e.g., median household income); however, tracking some economic indicators on a continual basis will help provide a general understanding of Irving’s relative economic health. TIP recommends the Partnership use the following metrics and data sources to measure program effectiveness and economic growth in the city. Wherever possible, each of these indicators should be tracked for Irving, the DFW Metroplex, Texas, and the US.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 28

CITY OF IRVING, TX

CATEGORY

METRIC

DATA SOURCE

Increase in the number of jobs created/retained Increase in the average wages of jobs created/retained Growth of private capital investment

Texas Workforce Commission; business interviews; surveys; and media reports Texas Workforce Commission; business interviews, surveys, and media reports Business interviews, surveys, and media reports Texas Workforce Commission (Labor Market and Career Information) U.S. Small Business Administration (www.SBIR.gov) Dallas Central Appraisal District Texas Comptroller’s Office Regional commercial real estate brokerage (e.g., CBRE, CoStar) U.S. Bureau of Labor Statistics (Quarterly Census of Employment and Wages) Business interviews, surveys, media reports Business interviews, surveys, media reports

Growth of private non-farm employment SBIR/STTR awards BUSINESS VITALITY & INNOVATION

QUALITY OF PLACE

INTERNATIONAL DEVELOPMENT

Growth of private commercial tax base Taxable retail sales growth Amount of new office space (square feet) added to local market Private business establishment growth Number of new businesses formed Number and dollar value of venture capital and angel investment deals Amount of new industrial space (square feet) added to local market Chamber of Commerce Blue Ribbon winners Increase in population age 25+ with a bachelor’s degree or higher Increase in percent of the population age 2034 Increase in number of students enrolled at University of Dallas and North Lake College Percentage of employed residents working from home Increase in median household income Hotel occupancy, average daily rate, and revenue per available room Performance of local K-12 school districts Restaurant sales tax collections, including mixed beverages, beer, and wine Irving Arts Center attendance Texas Musicians Museum attendance Irving Music Factory attendance Annual and monthly international air travel passengers at DFW International Airport Change in percentage of foreign-born residents Increase in the number of foreign-based firms with a local presence Increase in exports for locally-based firms Increase in foreign direct investment

ECONOMIC DEVELOPMENT STRATEGIC PLAN

Regional commercial real estate brokerage (e.g., CB Richard Ellis) U.S. Chamber of Commerce U.S. Census Bureau – American Community Survey (1-year estimates) U.S. Census Bureau – American Community Survey (1-year estimates) National Center for Education Statistics U.S. Census Bureau – American Community Survey (1-year estimates) U.S. Census Bureau – American Community Survey (1-year estimates) Smith Travel Research, Source Strategies Schooldigger.com, GreatSchools.org City of Irving City of Irving Texas Musicians Museum Irving Music Factory U.S. Department of Transportation (Bureau of Transportation Statistics) U.S. Census Bureau – American Community Survey (1-year estimates) Business interviews, surveys, media reports Business interviews, surveys, media reports Business interviews, surveys, media reports

PAGE | 29

CITY OF IRVING, TX

APPENDIX A: SUPPORT STRUCTURES There are factors beyond core economic development activities that impact Irving’s ability to grow its economy. This section describes considerations for economic success beyond business retention, expansion, and recruitment. Irving’s economic development program need not play a lead role in addressing these considerations. Nonetheless, because they impact the ability of the community to attract new jobs and investment, they need to be recognized. Other city departments (beyond the Economic Development Department), educational institutions, the regional real estate community, and other key stakeholder groups will play the lead role in addressing these support structures. In addition, the Comprehensive Plan being prepared by Fregonese Associates will provide further insight in many of these areas. 1. SITES & INFRASTRUCTURE: Preserve and develop appropriate real estate options and infrastructure to meet the needs of current and prospective businesses. 2. TALENT & WORKFORCE DEVELOPMENT: Encourage greater collaboration between the business community and educational institutions to develop talent that supports existing and future employers. 3. QUALITY OF PLACE & AMENITIES: Elevate Irving’s level of urban vitality and develop local amenities to attract and retain talented workers, visitors, and private sector investment.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 30

CITY OF IRVING, TX

SUPPORT STRUCTURE 1: SITES & INFRASTRUCTURE Preserve and develop appropriate real estate options and infrastructure to meet the needs of current and prospective businesses. Irving is the most centrally located city in the DFW Metroplex. FOCUS AREAS It is landlocked in every direction, with its city limits bordering  Preserve strategic sites for industrial and several other cities and includes part of DFW International commercial uses Airport. Additionally, the majority of Irving’s land is developed.  Collaborate with the real estate community to These facts have helped create a perception that there is little develop & redevelop prime sites or no room for additional development in Irving. Yet this  Work with partners to ensure infrastructure is viewpoint is misleading. The city is well-positioned to absorb in place to support growth significant new development and redevelopment, leading to high rates of future job growth and new capital investment. It will also be important for the City of Irving to stay ahead of the infrastructure requirements to facilitate additional growth in the community.

STRATEGIES INFRASTRUCTURE. Work with local and regional infrastructure providers to maintain and develop highquality infrastructure throughout Irving. 1.1.1.

Engage local businesses regularly to better understand their infrastructure needs and challenges.

1.1.2.

Periodically review Irving’s road network and other key infrastructure systems in comparison to other Metroplex cities. Use this analysis to make sure that Irving’s infrastructure is in an equal or better state of maintenance than regional competitor communities.

1.1.3.

Establish a regular investment process to fund infrastructure projects, especially in priority sites and other business districts.

AVAILABLE SITES. Work with the local and regional real estate community to ensure that there is an adequate supply of available buildings and sites. 1.2.1.

Annually (or more frequently) evaluate gaps in local sites and infrastructure with respect to the needs of target industries.

1.2.2.

This exercise should be conducted in partnership with the local and regional real estate community and local utility providers.

1.2.3.

The Prioritized Sites Listing conducted as part of this plan should be used as a starting point for the protection of property for commercial uses.

1.2.4.

Support the development of co-working spaces to provide a wider range of real estate options to startups and entrepreneurs.

1.2.5.

Aggressively promote Irving’s expedited permitting and development review services to support the growth of target industries and existing businesses.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 31

CITY OF IRVING, TX

1.2.6.

Review potential development sites using the Site Evaluation Criteria (Figure 50: Site evaluation criteria) in Appendix G:  Size  Infrastructure  Land Uses  Zoning  Highway Access  Arterial Road Access  Transit Access  Visibility  Employment Potential  Municipal Revenue Potential

1.2.7.

Protect the potential development sites that review favorably based on the Site Evaluation Criteria and promote them for commercial development.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 32

CITY OF IRVING, TX

SUPPORT STRUCTURE 2: TALENT & WORKFORCE DEVELOPMENT Encourage greater collaboration between the business community and educational institutions to develop talent that supports existing and future employers. Access to a skilled workforce is a critical factor affecting the FOCUS AREAS success of businesses in today’s economy. According to Area  Involve North Lake College and University of Development’s “29th Annual Survey of Corporate Executives Dallas more closely in business retention, (Q1 2015)”, access to a skilled workforce ranked second only expansion, and recruitment efforts to highway access as “very important” among 36 site selection  Explore potential for future higher education factors. Demographic trends at the national level will lead to expansion shrinkage of the working-age population in the next couple of  Continue and expand partnerships with K-12 decades. If job growth continues, even at a minimal rate, schools and local businesses employers will continue to have difficulties finding skilled workers. Thus, one of the most urgent priorities for communities is to develop a pipeline of talent to support the growth of existing and future employers. Regions and cities with a skilled population have a dramatic advantage over other areas. Employers are increasingly drawn to locations with concentrations of skilled workers. Irving’s central location within the Metroplex is a major advantage, giving the community access to a large, growing pool of skilled workers from the entire region. However, this alone is not enough to compete for new jobs and investment. There is a growing national movement to establish a demand-driven workforce development system that is more closely connected to employer requirements. This includes efforts to align workforce training and public education programs with employer needs to improve efficiency, support economic development, and provide workers with relevant training for today’s economy. Enhancing the skills of Irving’s current and future workforce, through partnerships with local employers and educational institutions, will help make the city a more attractive location for business expansion over the long-term.

STRATEGIES K-12 & BUSINESS ENGAGEMENT. Work with Irving ISD to build on the existing business/education partnerships enabled through the Chamber’s One Irving initiative and other efforts. 2.1.1.

Utilize national best practice examples of programs to improve K-12 outcomes and engagement with the business community. Several examples of programs include:  The StriveTogether Cradle to Career Network, a national network of 61 community partnerships to improve education success for children by bringing together cross-sector partners around a common vision;  Talent Search (part of the Federal TRIO programs to increase access to higher education for economically disadvantaged students);  Talent Development Network (Miami-Dade County), which matches Miami’s local students with internships at top employers in fast-growing career fields;  PASS (Partnership to Advance School Success), which brings top corporate executives into the classroom by serving as mentors to principals for a period of three years;

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 33

CITY OF IRVING, TX

 Jump Start (Louisiana) program for school districts, colleges, and businesses to collaborate in providing career courses and workplace experiences to high school students, certifying them for the career fields most likely to lead to high-wage jobs; and  Education that Works, a program in which school superintendents from the Fargo/Moorhead region are working with United Way and the Greater Fargo/Moorhead Economic Development Corporation to enhance K-12 curriculum with project-based learning that includes a stronger focus on measuring the “four Cs” (communication, collaboration, critical thinking, and creativity). HIGHER EDUCATION & BUSINESS ENGAGEMENT. Involve the University of Dallas and North Lake College more closely in business retention, expansion, and recruitment efforts, as well as innovation and entrepreneurship activities. 2.2.1.

Ensure that representatives from the University of Dallas and North Lake College are present at any meetings with economic development prospects and keep the higher education institutions engaged throughout the site selection process.

2.2.2.

Through BRE visits, create awareness among existing employers about unique or successful academic or training programs available at the University of Dallas and North Lake College (e.g., skills development grants from the Texas Workforce Commission).

2.2.3.

Support the growth and expansion of private training programs (coding and other technologyrelated training) in collaboration with the University of Dallas and North Lake College.

2.2.4.

Engage the University of Dallas and North Lake College in efforts to support entrepreneurship and technology-based startups.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 34

CITY OF IRVING, TX

SUPPORT STRUCTURE 3: QUALITY OF PLACE & AMENITIES Elevate Irving’s level of urban vitality and develop local amenities to attract and retain talented workers, visitors, and private sector investment. A successful economic development program in today’s environment cannot rely solely on business climate and traditional site location factors. Economic development activities are often undertaken in a vacuum, as if “jobs” were somehow independent of the people who hold them. Workers need places to live, amenities, and educational opportunities. Quality housing, restaurants, and good schools are not luxuries for today’s workforce. They are necessities. Communities that fail to adequately provide these assets will struggle to compete for new jobs and investment.

FOCUS AREAS 

Position former Texas Stadium site district as the premier redevelopment opportunity in the Metroplex



Strategic development & redevelopment of Heritage District



Transit-oriented development (TOD) along DART Orange Line & TRE commuter rail



Dense, mixed-use development in Las Colinas

Today’s generation of young adults, much more than previous generations, favors urban living and everything that comes with it (e.g., walking, biking, patronizing locally owned shops and restaurants instead of national chains). Providing an attractive environment that appeals to young professionals is critical for economic development. This is especially important since the number one issue for most companies (and by extension, for communities) is access to qualified workers. This is not limited to central cities and downtown areas. Within the Metroplex, a growing number of cities offer walkable neighborhoods and dynamic urban districts that attract young people. These vibrant districts are increasingly a key factor in the decision-making process for major business expansion and relocation projects. The Metroplex has several signature urban districts that are attracting investment and interest from young professionals and creative industry businesses and workers. These districts include: Downtown Dallas, Downtown Fort Worth, Dallas’s Uptown neighborhood, Southlake Town Square, Addison Circle, and Legacy Town Center in Plano. These urban settings provide a wide range of amenities in a walkable setting, something that Irving is currently lacking. However, the city does have several key areas with the potential to become much more walkable: the Las Colinas Urban Center, the upcoming Music Factory development, and the Heritage Crossing District. Irving’s transit-oriented development opportunities along the DART Orange Line and the Trinity Railway Express could play a major role in addressing the need for greater urban vitality. Additional private sector investment in the Heritage Crossing District also can help to create a stronger sense of place.

STRATEGIES Implementation of the strategies in this Support Structure will require close alignment with the objectives in Irving’s new comprehensive plan. AMENITIES. Continue to develop Irving’s retail base and other amenities to attract residents, visitors, and business investments. 3.1.1.

Support the ongoing development of the Las Colinas Urban Center as a centerpiece of Irving’s strategy to become an amenity-rich community that attracts people and businesses.

3.1.2.

Continue to build strong working relationships and ongoing conversations with the ownership of Irving Mall to ensure the successful development/redevelopment of this site over the short-term and long-term.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 35

CITY OF IRVING, TX

3.1.3.

Enhance the incentive program to encourage growth of new retail in Irving.  Only provide incentives for projects that bring a significant amount of desirable new retail spending into the community.  Conduct an annual survey of HR directors of major employers to gain a better understanding of specific retail/restaurant amenities desired by Irving’s workforce.

HERITAGE CROSSING DISTRICT. Pursue strategic development and redevelopment opportunities in the Heritage Crossing District and surrounding areas. 3.2.1.

Work with local businesses and urban real estate developers from the surrounding Dallas-Fort Worth region to develop spaces in the Heritage Crossing District for creative businesses, entrepreneurs, artists, and creative workers.  Leverage the connections available through the Hispanic Chamber and other partners to pursue this strategy.  Continue regular networking events to bring together creative businesses and workers into the Heritage Crossing District.

3.2.2.

Explore the potential to use crowdfunding for local real estate development projects to directly engage small business owners and local residents in efforts to stimulate investment and growth in the city’s underserved areas. This could also be pursued as a citywide strategy.

3.2.3.

Support the growth and success of the Texas Musicians Museum as a magnet to draw visitors, investment, and activity into the Heritage Crossing District.

FUNDRISE Fundrise is a Washington, DC-based startup that allows pools of local investors to back real estate projects in their own neighborhoods, with contributions big or small. Already, it has aggregated more than $30 million for local projects. Fundrise is using crowdfunding to democratize real estate investing, allowing local residents—not just accredited investors—to invest in for as little as $100. According to the Wall Street Journal, the key advantages of Fundrise (and of crowdfunding more broadly speaking for real estate projects) are “the ability to access more deals, invest smaller sums and connect directly with developers to ask questions and research deals”.

3.2.4.

Make the adaptation and re-use of old buildings feasible through zoning, funding, and sale of city-owned properties. Portland, OR is a good model of adaptive re-use of buildings (fire stations converted into apartments, an elementary school converted into a bar/hotel complex, and other examples).

3.2.5.

Continue to improve the city’s land bank properties and make these available for private sector development. For large cityowned sites, put together an RFP process for a public-private development that would bring in outside real estate developers interested in working with the city on a joint development project.

3.2.6.

Promote the Heritage Crossing District as a prime location for additional entertainment-related businesses including restaurants, music venues, and local retailers.  Focus on unique, locally-owned businesses.  Address any zoning issues that may prevent this from happening easily.

3.2.7.

Cultivate relationships with real estate developers that are currently building new communities that offer dense urban housing mixed with other uses (i.e., retail, office space).

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 36

CITY OF IRVING, TX

 Encourage and incentivize these developers to invest in urban developments throughout Irving, especially in areas with vacant and/or underutilized land.  Some of this will require changes to the city’s existing land use regulations (such as allowing garage apartments in existing single-family districts). 3.2.8.

Invest in infrastructure upgrades to enhance the physical environment in and around the Heritage Crossing District to enhance its appeal as an attractive place for people to live, work, and play.  Advance plans to improve the attractiveness and walkability of the Heritage Crossing District redevelopment by reducing traffic lanes, adding bike lanes, improving landscaping, and adding other amenities.  Investigate the potential to put in place public Wi-Fi service to enhance the longterm success of the district for business and personal use.

PORTLAND DEVELOPMENT COMMISSION: COMMERCIAL PROPERTY REDEVELOPMENT LOANS The Commercial Property Redevelopment Loan Program was created by the Portland Development Commission (PDC) to further economic development in designated commercial areas or corridors by filling the gaps between available financing and project costs. Typically, the PDC provides 10-20 percent of project funding for property development or rehabilitation that reflects the strategic priorities of PDC. Eligible projects include specific business categories, such as target or high-growth industry clusters, as well as projects that support historic preservation, transit-oriented development, and green building practices. Between July 2009 and July 2012, the PDC invested $28.4 million through the program, leveraging an additional $179.1 million of private capital, a 1:6 ratio.

TRANSIT-ORIENTED DEVELOPMENT. Incentivize and encourage high-quality, dense development around DART Orange Line and TRE Line stations. 3.3.1.

Put in place the appropriate zoning and land use regulations to incentivize TOD (transit-oriented development) around rail transit stations.  Continue to cultivate channels of communication with the city and major land owners with properties adjacent to transit stations to identify and address the barriers/opportunities for dense, walkable mixed-use development at TOD sites.  Ensure that land remains available for corporate HQs and major office developments, within a mixed-use setting, at each of the TOD sites.

3.3.2.

Take a study tour that brings along key stakeholders (major real estate developers, business executives, community leaders, and land owners) to other cities that have successfully implemented TOD programs, especially cities that have achieved mixed-use TOD incorporating major new employment centers.  Potential markets to visit include: Denver, Minneapolis-St. Paul, Portland, DC, and Atlanta.  Focus on identifying projects from other cities in which public-private collaboration was the catalyst for successful TOD.

3.3.3.

Establish an aggressive incentive program to encourage dense mixed-use development within defined TOD zones adjacent and proximate to Irving’s rail transit stations.

FORMER TEXAS STADIUM SITE. Position the former Texas Stadium site and its surroundings as the premier redevelopment opportunity in the entire Metroplex.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 37

CITY OF IRVING, TX

3.4.1.

Continue working with major land owners and other stakeholders (i.e., transportation planners, utility companies) to make this district ready for high-value development.  Incorporate good urban design guidelines through zoning and land use regulations to ensure that the district becomes a walkable, urban environment.  Make the necessary infrastructure investments to position this district for high-density private sector-driven development.  Explore the possibility of utilizing the DART Orange Line to have an off-site security check-in for DFW International Airport so air travel passengers can check in and “pass through security” directly from the former Texas Stadium site. This could be considered for one or more DART stations in Irving.

3.4.2.

Promote this district as a prime location for one-of-a-kind development opportunities, including land uses that do not currently exist in many other places in the Metroplex.  Encourage and incentivize the following types of development: major corporate headquarters in a mixed-use setting, destination retail/restaurant/entertainment facilities, high-density urban neighborhoods with a wide variety of uses, and new higher education facilities.  Discourage and protect the district from encroachment of incompatible land uses on or near the former Texas Stadium site, including: large-scale industrial properties such as warehouses, low-density residential, and single-use big-box retail.

COMPREHENSIVE PLAN. Continue to work closely with the city’s comprehensive planning effort being led by Fregonese Associates. The “quality of place” emphasis in the plan (walkability, gateways, emphasis on the Heritage Crossing District) works to support economic development. 3.5.1.

Design creative ways to attract investment into legacy retail corridors.

3.5.2.

Ensure the comprehensive plan provides for a variety of business opportunities and districts that can thrive over the long term.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 38

CITY OF IRVING, TX

APPENDIX D: SWOT & ECONOMIC ASSESSMENT INTRODUCTION To provide a foundation for the planning process, TIP conducted an assessment of demographic and economic characteristics that influence the city’s competitiveness. To maximize the value of this quantitative analysis, data are shown for the City of Irving, the Dallas-Fort Worth metro area, the State of Texas, and the US as a whole. In addition, we compare Irving to a selection of competitor cities on a number of demographic and economic factors. Finally, a review of strengths, weaknesses, opportunities, and threats identified during the planning process (commonly referred to as a SWOT analysis) is presented as well. The data in this section should be updated annually by the new City of Irving senior research staff position recommended in this strategic plan.

Source: US Census Bureau, TIP Strategies.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 50

CITY OF IRVING, TX

KEY FINDINGS Highlights from the economic assessment are outlined below. 

Irving has experienced rapid population growth in recent years, growing by 20 percent in the 8-year period from 2005 (190,404 residents) to 2013 (228,653 residents).



The city’s job growth has accelerated in recent years, with a total of 27,000 net new jobs added from 2009 to 2014, an increase of more than 14 percent.



Irving is the second most important employment center in the Dallas-Fort Worth metro area, with more than 94,000 net inbound commuters on a daily basis, second only to the City of Dallas.



Key industries that drive Irving’s economy include professional services, finance & insurance, and corporate & regional HQs, each of which accounts for a much higher percentage of jobs in Irving than the Dallas-Fort Worth metro area, Texas, or the US as a whole.



The city has a well-educated workforce at the upper end (34 percent of adults age 25+ hold a bachelor’s degree or higher, compared to 29 percent nationally), but an under-educated workforce at the lower end (20 percent of adults lack a high school diploma, compared to 14 percent nationally).



The city has a youthful population, with a median age (31.6) that is 6 years younger than the US average (37.3).



Irving has a diverse population, including a higher percentage of foreign-born residents (34%) than any other large city in the Dallas-Fort Worth metro area.



The city has a high concentration of well-paying professional jobs, with a much higher proportion of workers in the occupational groups of computer & math, business & finance, and architecture & engineering.

Irving has a wealth of assets and opportunities that can be leveraged for economic development. Some of the city’s most valuable assets are highlighted below. 

Irving’s strongest competitive advantage is its central location in the Dallas-Fort Worth metro area. In fact, Irving is the most centrally located city based on the region’s mean center of population. This gives the city easy access to the region’s business community and the large pool of skilled workers living in surrounding communities. Irving is also uniquely positioned between DFW International Airport and Dallas Love Field. Moreover, the DallasFort Worth metro area is the most centrally located large urban area in the US.



The city offers unparalleled access and connectivity to the surrounding Dallas-Fort Worth region and the entire US for businesses, workers, residents, and visitors. Irving’s location adjacent to DFW International Airport (the fourth busiest airport in the US behind Atlanta Hartsfield-Jackson, Chicago-O’Hare, and LAX) places the city less than four hours from every major business center in the US. Irving also has a robust transportation network connecting the city to the surrounding region via several major highways, the DART Orange Line, and the TRE commuter rail line.



Irving is home to many of the world’s most successful corporations including Fortune 500 headquarters (ExxonMobil, Fluor, Kimberly-Clark, Commercial Metals, Celanese, and Pioneer Natural Resources), Fortune 1000 headquarters (Flowserve, Michaels Stores, and Darling Ingredients), North American headquarters of foreign-based firms (NEC, Nokia, Siemens, Hilti, among others), and other major corporate operations of firms based elsewhere in the US. In fact, Irving’s largest private sector employer is CITI, which is headquartered in New York, NY, but has a major presence in Irving with 6,000 jobs and two cyber command centers. Other major

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 51

CITY OF IRVING, TX

corporations not based in Irving but with a substantial local presence include Verizon, AT&T, Sprint-Nextel, Microsoft, Allstate Insurance, Abbott Labs, and Oracle. 

The Las Colinas brand is well-recognized and the area is highly regarded as one of the leading business centers within the Dallas-Fort Worth metro area and within the State of Texas. With dozens of major corporate offices and more than 25 million square feet of office space, Las Colinas is second only to the downtown Dallas CBD (Central Business District) as a regional center of business and employment.



The city benefits from established higher education institutions, thanks to the presence of the University of Dallas and North Lake College. The University of Dallas is a top-tier private, Catholic, liberal arts university, with a 50/50 split of undergraduate and graduate students and a highly regarded MBA program in the University’s Satish & Yasmin Gupta College of Business. North Lake College is one of the premier colleges within the Dallas County Community College District, providing a wide range of high-quality academic and technical training programs. The potential exists to better connect these two institutions with the city’s major employers to support the community’s business retention and expansion efforts. Lastly, Irving’s central location within the region provides easy access to the entire region’s higher education assets including UT-Dallas, UTArlington, University of North Texas, Southern Methodist University, and Texas Christian University.



There are many available sites for development and redevelopment within Irving, including hundreds of acres situated adjacent to rail transit stations along the DART Orange Line (the Irving Convention Center station, the Carpenter Ranch station, the Las Colinas Urban Center station, and the University of Dallas station) and the TRE commuter rail line. The former Texas Stadium site and its surroundings represent what is perhaps the premier regional redevelopment opportunity. It contains approximately 400 acres of highly visible land with superb highway and light rail access. There are also undeveloped properties within Las Colinas suitable for urban mixed-use (residential, office, retail/restaurant, hotel) development. Additionally, there are many vacant and underutilized properties available for more dense development in the Heritage Crossing District and surrounding neighborhoods. Lastly, there are several large properties which are not “on the market” (the ExxonMobil headquarters, the Verizon campus, the Signet headquarters, among others) but are nonetheless potential sites for future development.

Irving also has significant challenges that could limit its potential if left unaddressed. Some of these challenges can be translated into opportunities while others require a more immediate and more aggressive response. The city’s most substantial barriers to growth are detailed below. 

Irving is surrounded by aggressive neighboring cities that have successfully competed for new investment and job growth and continue to do so. By some measures, the Dallas-Fort Worth metro area is the most competitive environment in the US for economic development. And many of Irving’s biggest competitors have large pools of funds available to finance their economic development programs. The good news is that Irving is well-positioned to elevate and accelerate its commitment to growing the local economy with a more focused approach to business retention, expansion, and recruitment.



There is a disconnect between Las Colinas and the rest of Irving, leading to a lack of connectivity within the city. The absence of high-quality physical connectivity can be seen in the fact that it can take just as long to drive from the Heritage Crossing District to Las Colinas as it can take to travel from downtown Dallas to Las Colinas. Perhaps even more apparent is the deficiency of cultural and business ties between the Heritage Crossing District and Las Colinas. In their present state, these two sections of Irving feel more like two different cities than two districts within the same city. This represents missed opportunities for businesses as well as residents in both areas. Fortunately, there is untapped potential to better connect these two sections of the city, both by linking residents throughout Irving to employment opportunities in Las Colinas and by promoting

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 52

CITY OF IRVING, TX

potential business expansion and real estate development opportunities in the Heritage Crossing District among businesses in Las Colinas. 

The city has a low-performing public K-12 school system, especially in comparison to some of the surrounding school districts. In fact, Irving ISD is ranked 844 th out of 965 total districts in Texas by School Digger, a service that bases rankings on test-score data from the state’s Department of Education. This is a lower ranking than the school districts in all of Irving’s benchmark cities (see list, page 78) in the Dallas-Fort Worth metro area. Nonetheless, Irving ISD does have strong programs and has recently been recognized for its progress with a National AP award. Irving is also home to multiple top-notch private (Cistercian and The Highlands School) and charter schools (Uplift North Hills Prep, Great Hearts, and Uplift Infinity). It is also important to point out that portions of Irving’s city limits fall within Coppell ISD, which is ranked in the top 10 percent of school districts statewide (ranked 66 out of 965), and Carrollton-Farmers Branch ISD, which is in the top 40 percent of school districts in Texas (ranked 375 out of 965).



Irving has struggled to achieve a high level of urban vitality, which is a major barrier to attracting young professionals and creative industry workers. The city does not currently have a signature urban, mixed-use district (like Dallas’s Uptown neighborhood, Southlake Town Square, or Addison Circle) that provides a wide range of amenities in a dense, walkable setting. However, the city does have solid building blocks for enhanced urban districts, including the Las Colinas Urban Center, the upcoming Music Factory project, and the Heritage Crossing District. Irving also has unique infrastructure assets (DART Orange Line and TRE commuter rail line) and major redevelopment opportunities (the former Texas Stadium site and surrounding properties) that can also provide a major boost to the city’s urban vitality.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 53

CITY OF IRVING, TX

SWOT ANALYSIS In addition to our review of economic and demographic data, our understanding of Irving was informed by roundtable discussions and interviews with local leaders in the public and private sector, as well as our experience working with communities across the country. Based on this work, we have developed an analysis of the city’s strengths, weaknesses, opportunities, and threats, commonly referred to as a SWOT analysis. The results of the analysis are outlined below.

STRENGTHS  WalletHub named Irving 2015’s “Best City to Start a Career” in the US (#1 out of the 150 largest cities)  The DFW metro area is currently one of the hottest markets in the US for business expansion  Irving’s locational advantages are unparalleled:  Irving is the most centrally located city in DFW Metroplex  The city is located between DFW International Airport and Dallas Love Field  DFW Metroplex is the most centrally located major metro area in the US  Irving’s proximity to DFW International Airport, and the strong relationship between the airport and the city, are perhaps the city’s strongest assets for business attraction and investment  Irving’s economic base is strong and diverse, with high concentrations of jobs in finance/accounting, information technology, and engineering thanks to the presence of many corporate HQs and other major business operations  Diversity in the city’s population and workforce is an advantage, especially for multi-national corporations (including most diverse zip code in the US, 75038, based on analysis by Trulia)  Strong business and cultural ties to several foreign countries (India, Japan, Mexico, Finland, Saudi Arabia, among others), including sister city relationships  Robust transportation access and connectivity within the DFW region (DART, TRE, highway system)  Well-known Las Colinas brand as a top destination for businesses  Irving is generally regarded (within the Metroplex and Texas as a whole) as having a strong business climate  Las Colinas infrastructure and amenities (canals, water features, etc.)  Many recent economic development “wins” (relocations of corporations to Irving, expansions of existing Irving-based companies, and re-investment of existing firms in existing facilities)  Large, diverse base of corporations including:  Several Fortune 500 HQs and Fortune 1000 HQs  North American HQs of foreign-owned firms  Divisional/regional HQs of major corporations  Irving ISD has recently received a national AP award and is a leader in implementing HB-5 career paths in aviation, culinary, and robotics fields  Uplift North Hills Prep, Uplift Infinity Prep, and Cistercian Preparatory School are regarded as top-tier schools in the region  Strong broadband and electric utility infrastructure  City’s development review/permitting process is generally considered to be timely and dependable  Access to a large pool of talented workers in Irving and surrounding DFW cities  Easy for Irving corporations to find skilled workers for their operations  Strong city/chamber partnership approach for economic development with a chamber which is wellregarded by the corporate community in DFW

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 54

CITY OF IRVING, TX

 Irving’s smaller size (relative to the City of Dallas) offers greater visibility to the international companies with operations in the community  Annual InnoTech conference in Las Colinas  Texas Musician’s Museum  Heritage Crossing District with unique local character and strong redevelopment potential  Many neighborhoods in the southern section of Irving are walkable (highest Walk Scores in city and higher than surrounding suburban communities)

WEAKNESSES  Irving ISD does not perform well compared to many school districts in surrounding communities (Coppell, Farmers Branch, Lewisville, Plano, etc.)  Lack of “cool old buildings” (warehouses, etc.) that are attractive to young tech companies and startups  Aging Irving Mall  Perceptions of blight/crime in portions of Irving  Restrictions on use/sale/consumption of alcohol in parks (for events/festivals)  Irving lacks the “new and shiny” image and consumer amenities (upscale shopping, fine dining, and nightlife) available in some competitor communities (Frisco, Plano, Southlake, Grapevine, etc.)  Perception/reality of absentee landlords as a barrier in portions of Irving  DCURD’s infrastructure requirements in Las Colinas add a significant amount of cost to new development, especially for new office space  Irving does not have the “Triple Freeport” tax exemptions that other cities bordering DFW International Airport have, but does offer these exemptions from the city case-by-case

OPPORTUNITIES  Wide range of sites with thousands of combined acres available for large-scale real estate development for new office space, mixed-use districts, and urban residential zones (University of Dallas land, former Texas Stadium site and surroundings, underutilized properties including ExxonMobil and Verizon campuses, and many other sites)  Several sites with potential for transit-oriented development adjacent to DART Orange Line and TRE station  Ongoing development of Music Factory (live music venue, restaurants, Alamo Drafthouse theater) will provide a major boost to Irving’s quality of place  Recent/ongoing/planned urban residential development in Las Colinas is enhancing the district’s urban vitality  Potential for development of more housing and space for businesses in Heritage Crossing District  Investments and expansion of Highway 183  Expand education training partnerships between local employers and Irving ISD and North Lake College  Expand aviation training collaboration between Aviation Institute, Irving ISD, and local employers  Involve North Lake College and the University of Dallas more actively in business attraction efforts  Attraction of growing companies from startup hotbeds (like Austin) when these companies are “ready to grow up”  Connect the city’s efforts to create an incubator/accelerator with the innovation efforts taking place within major corporations, as well as startups

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 55

CITY OF IRVING, TX

 Potential development of large floodplain area along Trinity River in southern section of city (adjacent to Grand Prairie) for recreational uses  $20 million donation to University of Dallas business program from prominent Indian business family  Potential for city to partner with NEC on a “smart cities” program.  Expand partnerships with the business attraction efforts of the Dallas Regional Chamber’s DFW Marketing Team, the Governor’s Office, and TexasOne for economic development in Irving  Potential for more sports tournaments to support local hospitality industry, especially on weekends (assuming facilities can be made available for these purposes)  Leverage Las Colinas water features for events, development, and other purposes  Large untapped potential for international business development from two sides: 1) the attraction of foreign-based firms into Irving; and 2) the expansion of Irving-based corporations into international markets  DFW International Airport has plenty of land available for development, including hundreds of acres within the Irving city limits, many of which are prime sites for attracting aviation-related businesses and “business-on-demand” firms (management consulting, corporate training, IT)  The southern section of DFW International Airport is experiencing high levels of interest for industrial development  There is a large untapped opportunity for additional air cargo activity at DFW International Airport (currently, DFW International Airport has only a 2% market share of perishable products from Latin America while Miami International Airport has 70% of this market, but DFW is a more cost-effective option)  Re-imagine Irving Mall to incorporate mixed-use development (residential, office, academic, research uses)

THREATS  Alcohol use/sale/consumption restrictions in park spaces limit the potential to establish a vibrant urban experience through the creation of festivals/events/live music in the Heritage Crossing District and other parts of the community  Fierce competitive environment in Metroplex for business attraction. Many cities in the metro area have well-funded, successful economic development programs  Competition for commercial real estate development between DFW International Airport and other properties in Irving  Some of the city’s development regulations are unfavorable to dense urban, mixed-use development and to the adaptive re-use of old structures  Negative perceptions of city due to recent minor earthquakes  Relatively low achievement levels of Irving ISD (compared to surrounding districts such as Coppell ISD and Carrollton-Farmers Branch ISD) is a barrier to attracting high-wage professionals and business executives into the residential community and, in some cases, can impact the corporate site location decisions as well  Some of Irving’s major employers (AT&T, TXU, and others) face increased competition from other companies seeking to disrupt traditional industries like telecommunications (Google) and electric utilities (Tesla)  “Start and stop” nature of major developments (Water Street and Entertainment Center) in the high-growth DFW marketplace could cause Irving to miss out on current and short-term business attraction opportunities  Perception of Irving and Las Colinas as two different cities

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 56

CITY OF IRVING, TX

ECONOMIC ASSESSMENT LOCATION ADVANTAGES FIGURE 8. REGIONAL MEAN CENTER OF POPULATION, 2010 THE DALLAS-FORT WORTH METRO AREA’S MEAN CENTER OF POPULATION IS IN IRVING The Dallas-Fort Worth metro area’s regional center of gravity sits within the municipal boundaries of Irving, making it the most centrally located city within the entire metro area (the mean center of population in more formal terminology). The regional center of gravity shifted 1 mile north from Highway 183 at Wingren Road in 2000 to near the intersection of O’Connor Boulevard and East Northgate Drive in 2010. In other words, from central Irving there are an equal number of Metroplex residents living in every direction. And as the region continues to grow, Irving will remain the most centrally located city for at least a few more decades, perhaps even longer. This centrality has huge implications for Irving’s economic development potential, especially in combination with the city’s many transportation assets (DFW International Airport, DART Orange Line, TRE, and several major highways). Irving’s locational advantages are the most commonly cited asset by the city’s businesses. And the results can be seen in the city’s impressive list of major employers (see Figure 15 on page 61) that call Irving home, thanks in large part to the city’s central location.

Source: US Census Bureau, TIP Strategies.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 57

CITY OF IRVING, TX

FIGURE 9. TOP 10 BUSIEST AIRPORTS BY DOMESTIC PASSENGERS, 2014 DFW IS THE 3RD BUSIEST AIRPORT IN THE US FOR DOMESTIC PASSENGERS More than 27 million domestic passengers flew through DFW International Airport in 2014. If 2010-2014 growth rates continue, DFW will surpass Chicago O’Hare in 2018 as the 2 nd busiest airport for domestic passengers. NO.

CODE

AIRPORT

ATL

ORD

Hartsfield-Jackson Atlanta International Chicago O'Hare International

DFW

Dallas/Fort Worth International

LAX

DOMESTIC PASSENGERS (2014)

AVG. ANNUAL % CHANGE (2010-2014)

41,331,492

1.8%

28,098,448

1.6%

27,309,768

2.4%

Los Angeles International

25,125,274

4.5%

DIA

Denver International

24,877,202

1.6%

CLT

Charlotte Douglass International

19,987,477

4.6%

PHX

Phoenix Sky Harbor International

19,224,449

1.8%

LAS

McCarran International (Las Vegas)

18,712,331

0.7%

SFO

San Francisco International

17,744,960

4.1%

SEA

Seattle/Tacoma International

15,996,552

2.8%

Source: US Bureau of Transportation Statistics

FIGURE 10. GROWTH OF DOMESTIC AIR TRAVEL PASSENGERS, 2010-2014 DOMESTIC AIR TRAVEL AT DFW GREW BY AN AVERAGE ANNUAL RATE OF 2.4% FROM 2010-2014 DFW’s domestic air travel grew faster than 5 of the 10 busiest airports from 2010-2014.

Source: US Bureau of Transportation Statistics

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 58

CITY OF IRVING, TX

FIGURE 11. TOP 10 BUSIEST AIRPORTS BY INTERNATIONAL PASSENGERS, 2014 DFW IS THE 10TH BUSIEST AIRPORT IN THE US FOR INTERNATIONAL PASSENGERS More than 3 million international passengers traveled through DFW in 2014. NO.

CODE

INTERNATIONAL PASSENGERS (2014*)

AIRPORT

JFK

MIA

John F. Kennedy International (New York) Miami International

LAX

AVG. ANNUAL % CHANGE (2010-2014)

12,438,236

4.9%

8,801,714

4.8%

Los Angeles International

8,338,162

4.4%

EWR

Newark Liberty International

5,233,797

1.4%

ORD

Chicago O'Hare International

4,999,478

1.3%

ATL

Hartsfield-Jackson Atlanta International

4,788,272

4.0%

SFO

San Francisco International

4,565,231

4.7%

IAH

George Bush Intercontinental (Houston)

4,277,424

4.5%

IAD

Washington Dulles International

3,160,720

3.3%

DFW

Dallas/Fort Worth International

3,094,068

8.0%

Source: US Bureau of Transportation Statistics.

*Through Nov. 2014.

FIGURE 12. GROWTH OF INTERNATIONAL AIR TRAVEL PASSENGERS, 2010-2014 INTERNATIONAL TRAVEL IS GROWING FASTER AT DFW THAN THE OTHER 10 BUSIEST AIRPORTS DFW’s international passenger traffic grew at an average annual rate of 8% from 2010-2014, much faster than any of the other 10 busiest international airports.

Source: US Bureau of Transportation Statistics

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 59

CITY OF IRVING, TX

ECONOMIC TRENDS FIGURE 13. TOTAL POPULATION IRVING’S POPULATION HAS GROWN RAPIDLY SINCE 2005 Irving’s population did not grow from 2000 to 2005, but it has grown by more than 38,000 residents from 2005 to 2013, a gain of 20%.

Source: US Census Bureau, Annual Population Estimates

FIGURE 14. TOTAL EMPLOYMENT IRVING’S ECONOMY HAS ADDED JOBS IN EACH OF THE LAST 5 YEARS The city’s job base has grown rapidly in recent years, finally surpassing the 2001 peak in 2014.

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 60

CITY OF IRVING, TX

FIGURE 15. MAJOR EMPLOYERS IN IRVING, 2016 (IRVING HQs HIGHLIGHTED) THE CITY’S ECONOMIC BASE IS MADE UP OF DOZENS OF MAJOR EMPLOYERS IN A DIVERSE RANGE OF INDUSTRIES HQ LOCATION (FOREIGN IN ITALICS)

JOBS

NO.

EMPLOYER

INDUSTRY/ PRODUCT TYPE

CITI

Banking & Financial Services

New York, NY

6,500

Irving ISD

Education

Irving, TX

4,044

Verizon Communications

Telecommunications

New York, NY

3,260

Irving Mall (WP Glimcher)

Retail

Columbus, OH

2,100

Allstate Insurance Co

Insurance

2,000

YRC Freight

Logistics & Distribution

Northbrook, IL Overland Park, KS

City of Irving

Government

Irving, TX

1,846

DFW International Airport

Transportation

Irving, TX

1,700

Nokia

Telecommunications

Espoo, Finland

1,500

Quest Diagnostics

Clinical Laboratory Services

Madison, NJ

1,500

Michaels Stores Inc.

Retail

Irving, TX

1,388

Microsoft Corp

IT Services & Products

Redmond, WA

1,350

Neiman Marcus Direct

Retail

Dallas, TX

1,339

Health Management Systems (HMS)

Health Care

Irving, TX

1,299

7-Eleven

Retail

Dallas, TX

1,250

Signet

Retail

Irving, TX

1,250

Baylor Medical Center

Health Care

Dallas, TX

1,124

Pioneer Natural Resources USA

Oil & Gas Production

Irving, TX

1,090

North Lake College

Education

Irving, TX

1033

Archon Group

Real Estate Services

Irving, TX

1001

Four Seasons Resort and Club

Hotels

Toronto, Canada

960

TXU Energy

Electric Utilities

Dallas, TX

900

VHA Inc.

Health Care

Irving, TX

773

ACE Cash Express Inc.

Payday Loans

Irving, TX

729

Nissan North America Inc.

Automotive

Yokohama, Japan

715

Fed Ex Freight

Logistics & Distribution

Memphis, TN

700

Dr Pepper Snapple Group

Soft Drinks

Plano, TX

696

Computer Sciences Corporation

IT Services

Falls Church, VA

650

Fluor Corporation

Engineering

Irving, TX

650

AT&T Inc.

Telecommunications

Dallas, TX

644

Oracle Corp

IT Services & Products

Redwood City, CA

612

Liberty Mutual Insurance

Insurance

Boston, MA

600

NCH Corporation

Maintenance Products

Irving, TX

600

NEC Corporation of America

IT Services & Products

Tokyo, Japan

600

HCA

Health Care

Nashville, TN

550

Holt Cat

Construction Equipment

San Antonio, TX

550

ADT Security (previously Brink's)

Security Systems

Boca Raton, FL

535

Commercial Metals Company

Steel & Metal Manufacturing

Irving, TX

508

ECONOMIC DEVELOPMENT STRATEGIC PLAN

1,941

PAGE | 61

CITY OF IRVING, TX

HQ LOCATION (FOREIGN IN ITALICS)

NO.

EMPLOYER

INDUSTRY/ PRODUCT TYPE

University of Dallas

Education

Irving, TX

507

Aviall Inc.

Aerospace & Defense

Irving, TX

500

Caris Diagnostics

Biotechnology

Irving, TX

500

Boy Scouts of America

Nonprofit Organization

Irving, TX

450

ExxonMobil Corporation

Oil & Gas Production

Irving, TX

403

Kimberly-Clark Corporation

Consumer Goods

Irving, TX

400

CEC Entertainment

Restaurants

Irving, TX

350

Flowserve Corporation

Industrial/Environmental Machinery

Irving, TX

350

Celanese Corporation

Chemicals & Advanced Materials

Irving, TX

324

Siemens

Engineering

Munich, Germany

300

Trend Micro

Security Software

Tokyo, Japan

245

JOBS

Source: Greater Irving-Las Colinas Chamber of Commerce, Feb. 2016

FIGURE 16. FORTUNE 500 AND FORTUNE 1000 HEADQUARTERS IN IRVING, 2015 IRVING IS A SIGNIFICANT CENTER OF MAJOR CORPORATE HEADQUARTERS NO.

REVENUE (TRAILING 12 MONTHS ENDING DEC. 31 2015) $236.81B

COMPANY ExxonMobil

INDUSTRY/PRODUCT TYPE Oil & Gas Production

136

Fluor Corporation

Engineering

$18.11B

140

Kimberly-Clark Corporation

Consumer Goods

$18.59B

388

Commercial Metals Company

Steel & Metal Manufacturing

$5.46B

395

Chemicals & Advanced Materials

$5.67B

Oil & Gas Production

$3.14B

528

Celanese Corporation Pioneer Natural Resources Company Flowserve Corporation

Industrial/Environmental Machinery

$4.56B

544

Michaels Stores, Inc.

Retail

$4.84B

622

Darling Ingredients

Food Production

$3.59B

496

Source: Fortune, Yahoo! Finance

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 62

CITY OF IRVING, TX

FIGURE 17. IRVING NET JOB CHANGE BY INDUSTRY, 2010-2014 IRVING’S RECENT JOB GROWTH HAS PRIMARILY COME FROM ADMINISTRATIVE SERVICES, PROFESSIONAL SERVICES, AND FINANCE & INSURANCE Irving has experienced rapid job growth in administrative services, professional services, and finance & insurance since 2010. In fact, those three sectors account for 59 percent of the city’s job growth from 2010-2014. The only significant declines in employment occurred in the wholesale trade and construction sectors in 2010 and 2011, but these sectors have recovered with solid job growth in 2013 and 2014. The following six sectors experienced net job growth in each of the last five years: oil, gas, & mining; information & media; healthcare; transportation & warehousing; professional services; and administrative services.

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 63

CITY OF IRVING, TX

FIGURE 18. IRVING NET JOB CHANGE BY OCCUPATION, 2010-2014 PROFESSIONAL OCCUPATIONS MAKE UP A LARGE PORTION OF IRVING’S RECENT JOB GROWTH Irving has experienced solid job growth across a wide range of occupational groups, with net job growth in each of the last 5 years in 17 of the city’s 23 occupational categories. A large portion of the city’s recent job growth has taken place in professional office-related occupations, with the following five groups accounting for 53% of the city’s net job growth from 2010-2014: office & administrative support; computer & math science; business & financial operations; sales; and management.

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 64

CITY OF IRVING, TX

FIGURE 19. UNEMPLOYMENT RATES (12-MONTH ROLLING AVG.), JAN. 2000-DEC. 2014 IRVING’S UNEMPLOYMENT RATE HAS REMAINED CONSISTENTLY BELOW US, TEXAS, AND REGIONAL RATES FOR MOST OF THE LAST 15 YEARS Irving’s end-of-year unemployment rate (Dec. 2014) of 3.6% was lower than the Dallas-Fort Worth MSA rate (4%), the Texas rate (4.1%), and the US rate (5.4%) for the same time period.

Source: US Bureau of Labor Statistics, Local Area Unemployment Statistics (state and local)

FIGURE 20. AVERAGE ANNUAL WAGES, 2001-2014 IRVING’S WAGES ARE SIGNIFICANTLY HIGHER THAN US, TEXAS, AND REGIONAL WAGE RATES Irving’s average annual wages grew from $47,350 in 2001 to $63,732 in 2014, an increase of nearly 35%. Wages in the city remain significantly higher than wages in the surrounding region, state, and US thanks to the high concentration of major corporate operations and professional jobs.

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 65

CITY OF IRVING, TX

COMMUTING PATTERNS FIGURE 21. NET DAILY COMMUTER TRAFFIC FOR IRVING, 2002-2011 THE CITY IS A MAJOR EMPLOYMENT CENTER WITHIN THE DALLAS-FORT WORTH METRO AREA The number of commuters that live and work in Irving is relatively small (about 22,000 workers, less than 12 percent of Irving’s total jobs) and has not changed significantly over the last decade. The number of inbound commuters (people that work in Irving and live outside the city) has grown from 149,000 in 2002 to 166,000 in 2011, reflecting the city’s increasingly important role as a major business center within the Dallas-Fort Worth metro area. The number of outbound commuters has also increased significantly over the last decade, from 57,000 in 2002 to 71,000 in 2011, but remains much lower than the number of inbound commuters.

Source: US Census Bureau, Local Employment Dynamics (LED) database

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 66

CITY OF IRVING, TX

FIGURE 22. DAILY NET INFLOW/OUTFLOW OF WORKERS BY SECTOR FOR IRVING, 2011 THE CITY IMPORTS A LARGE AMOUNT OF WORKERS IN MOST INDUSTRY SECTORS Thanks to its role as one of the most important business and employment centers in the DFW Metroplex, Irving experiences a large net daily inflow of commuters. The industries drawing the highest levels of inbound commuters are: finance & insurance (18,233 net inbound commuters); administrative/support services (14,919); and professional, scientific, and technical services (11,802).

Source: US Census Bureau, Local Employment Dynamics (LED) database

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 67

CITY OF IRVING, TX

FIGURE 23. IRVING’S LABOR SHED CITIES WHERE IRVING WORKERS LIVE, 2011

Source: US Census Bureau, Local Employment Dynamics (LED) database, TIP Strategies.

IRVING LABOR SHED, 2011 CITIES WHERE IRVING WORKERS LIVE

INBOUND COMMUTERS

PERCENT OF TOTAL

Dallas

26,045

13.9%

Irving

22,215

11.8%

Fort Worth

11,892

6.3%

Arlington

9,312

5.0%

Grand Prairie

6,523

3.5%

Plano

5,775

3.1%

Carrollton

4,386

2.3%

Lewisville

4,282

2.3%

Flower Mound

3,952

2.1%

Frisco All Other Locations

3,352

1.8%

90,075

48.0%

Source: US Census Bureau, Local Employment Dynamics (LED) database, TIP Strategies.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 68

CITY OF IRVING, TX

FIGURE 24. IRVING’S COMMUTE SHED, 2011 CITIES WHERE IRVING’S RESIDENTS WORK

Source: US Census Bureau, Local Employment Dynamics (LED) database, TIP Strategies.

IRVING COMMUTE SHED, 2011 CITIES WHERE IRVING RESIDENTS WORK

OUTBOUND COMMUTERS

PERCENT OF TOTAL

Dallas

26,295

28.1%

Irving

22,215

23.7%

Fort Worth

4,253

4.5%

Grapevine

3,458

3.7%

Arlington

3,097

3.3%

Plano

2,539

2.7%

Carrollton

2,521

2.7%

Farmers Branch

2,427

2.6%

Grand Prairie

2,285

2.4%

Richardson All Other Locations

1,729

1.8%

22,851

24.4%

Source: US Census Bureau, Local Employment Dynamics (LED) database

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 69

CITY OF IRVING, TX

INDUSTRY ANALYSIS FIGURE 25. DISTRIBUTION OF EMPLOYMENT BY INDUSTRY, 2014 SHARE OF TOTAL EMPLOYMENT BY MAJOR INDUSTRY SECTOR Irving’s employment is highly concentrated in three sectors: administrative & support services (14.7 percent of total employment); professional services (11.9 percent); and finance & insurance (11.8 percent). Together, these three sectors account for more than 38 percent of Irving’s total employment, compared to less than 15 percent of US employment. The city has a much lower percentage of jobs than the Dallas-Fort Worth metro area, Texas and the US in the following three sectors: retail trade (6.6 percent); private educational services (6.3%); and healthcare & social assistance (5.6%). N AICS Code & Description

Irving

Da lla s-Fort W orth M SA

Tex a s

Administrative & support services

1 4 .7 %

8.4%

6.6%

6.3%

Professional services

1 1 .9 %

7.0%

6.1%

6.3%

Finance & insurance

1 1 .8 %

6.1%

4.3%

4.1%

W holesale trade

7.0%

5.3%

4.6%

3.9%

Lodging, restaurants, & bars

6.7%

8.3%

8.4%

8.3%

44-45

Retail trade

6.6%

9 .9 %

1 0 .3 %

1 0 .4 %

Information

6.4%

2.4%

1.7%

1.9%

Educational services (private)

6.3%

8 .5 %

9 .7 %

9 .3 %

Healthcare & social assistance

5.6%

1 0 .4 %

1 1 .6 %

1 3 .1 %

Construction

4.7%

5.9%

6.6%

5.2%

Transportation & warehousing

3.7%

4.9%

4.0%

3.7%

Personal & other services

3.5%

5.0%

4.8%

Manufacturing

3.5%

7.5%

7.0%

8.1%

Corporate & regional offices

2.7%

1.0%

0.7%

1.4%

Property sales & leasing

2.5%

2.1%

1.8%

1.6%

48-49 81 31-33

Arts, entertainment, & recreation

0.8%

1.4%

1.1%

1.6%

9011

Federal govt., civilian

0.6%

0.9%

1.2%

1.5%

Mining (incl. oil & gas)

0.4%

1.0%

2.5%

0.6%

Utilities

0.4%

0.3%

0.4%

Federal govt., military

0.3%

0.5%

1.4%

1.3%

Local govt. (incl. pub. ed. & hospitals)

0.0%

2.6%

2.9%

3.6%

Agriculture & forestry

0.0%

0.2%

0.8%

1.2%

State govt. (incl. higher ed./ hospitals)

0.0%

0.4%

1.1%

1.5%

9012 903 11 902

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 70

CITY OF IRVING, TX

FIGURE 26. CONCENTRATION OF EMPLOYMENT BY INDUSTRY, 2014 LOCATION QUOTIENT (LQ) ANALYSIS BY MAJOR INDUSTRY SECTOR, US=1.00 Location quotient (LQ) analysis can provide an understanding of an area’s relative strengths. A review of LQs reveals a number of differences between Irving and the surrounding regional, state, and national economy. Employment levels are much higher in Irving than in the Dallas-Fort Worth MSA for the following sectors: information (LQ of 3.41); finance & insurance (2.92); administrative & support services (2.36); corporate & regional offices (1.91); and professional services (1.88). Irving has lower concentrations of employment than the MSA in the following sectors: retail trade (0.63); arts, entertainment, & recreation (0.47); manufacturing (0.43); and healthcare & social assistance (0.43).

N AICS Code & Description

Irving

LOCATION QUOTIENT (LQ) ANALYSIS is a statistical technique used to suggest areas of relative advantage based on a region’s employment base. LQs are calculated as an industry’s share of total local employment divided by the same industry’s share of employment at the national level. If the local industry and national industry are perfectly proportional, the LQ will be 1.00. LQs greater than 1.25 are presumed to indicate a comparative advantage; those below 0.75 suggest an under-developed sector but may also point to opportunities for expansion/attraction.

Da lla s-Fort W orth M SA

Tex a s

Information

3 .4 1

1 .2 6

0.89

1.00

Finance & insurance

2 .9 2

1 .5 1

1.07

1.00

Administrative & support services

2 .3 6

1 .3 4

1.06

1.00

Corporate & regional offices

1 .9 1

0.73

0.51

1.00

Professional services

1 .8 8

1.11

0.97

1.00

W holesale trade

1 .7 8

1 .3 5

1.18

1.00

Property sales & leasing

1 .5 3

1 .2 7

1.11

1.00

22 Utilities 48-49 Transportation & warehousing 23 Construction

1.06

0.74

1.08

1.00

1.02

1 .3 5

1.11

1.00

0.91

1.13

1 .2 7

1.00

Lodging, restaurants, & bars

0.81

1.00

1.02

1.00

Personal & other services

0.74

1.05

1.01

1.00

Educational services (private)

0.67

0.91

1.04

1.00

Mining (incl. oil & gas) 44-45 Retail trade 71 Arts, entertainment, & recreation

0.67

1 .6 7

4 .3 6

1.00

0.63

0.95

0.99

1.00

0.47

0.87

0.70

1.00

31-33 Manufacturing 62 Healthcare & social assistance

0.43

0.93

0.87

1.00

0.43

0.79

0.88

1.00

9011 Federal govt., civilian 9012 Federal govt., military 11 Agriculture & forestry

0.37

0.62

0.83

1.00

0.19

0.36

1.05

1.00

0.01

0.15

0.65

1.00

903

Local govt. (incl. pub. ed. & hospitals)

0.01

0.73

0.81

1.00

902

State govt. (incl. higher ed./ hospitals)

0.00

0.26

0.77

1.00

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 71

CITY OF IRVING, TX

FIGURE 27. TOP 30 INDUSTRIES IN IRVING RANKED BY LOCATION QUOTIENT, 2014 IRVING HAS A HIGH LEVEL OF EMPLOYMENT IN MANY HIGH-PAYING SECTORS Irving has a high concentration of jobs in sectors tied to finance & insurance, information, and professional services. Of the top 30 sectors ranked by LQ, 10 sectors have average annual earnings per worker above $100,000, and 19 sectors have average annual earnings per worker above $75,000. And the majority (21 of 30) of these sectors are projected to add jobs from 2014 to 2019. Jobs 2010 8,942 1,412

Jobs 2014 9,843 1,215

N et Chg., 2 0 1 0 -1 4 +901 -197

Projected Chg.* p q

EPW ** $88,588 $111,402

LQ 2014 11.62 9.81

169 223 515 2,363

298 363 710 2,805

+128 +139 +194 +442

p p q p

$130,810 $40,572 $87,919 $151,315

9.12 8.35 6.80 6.54

3,182 4,733 973 873 1,308 4,815 9,255 1,984 5,278 1,376 790 1,521 68 694

2,950 5,313 1,284 964 2,104 5,718 11,576 2,133 5,312 1,491 935 1,415 150 847

-232 +580 +311 +91 +796 +903 +2,321 +149 +34 +115 +145 -105 +82 +153

q q q p p p p p q p p p q p

$147,793 $135,551 $107,843 $91,968 $53,312 $46,480 $110,618 $71,428 $46,802 $75,659 $86,903 $118,346 $23,024 $78,671

6.33 6.07 5.71 5.18 4.71 4.51 4.24 4.19 3.97 3.90 3.63 3.60 3.36 3.10

5323 General Rental Centers

157

187

+31

$66,582

3.09

4881 Support Activities for Air Transportation

322

777

+456

$40,436

3.08

5613 Employment Services

9,390

14,089

+4,699

$38,166

2.78

5416 Management, Scientific, and Technical Consulting Services

4,820

5,911

+1,091

$111,047

2.73

5611 Office Administrative Services

1,685

1,802

+117

$113,343

2.68

5241 Insurance Carriers

3,985

4,678

+693

$94,657

2.51

5615 Travel Arrangement and Reservation Services 5242 Agencies, Brokerages, and Other Insurance Related Activities

480 2,991

745 4,169

+265 +1,178

p p

$53,881 $88,886

2.46 2.22

5313 Activities Related to Real Estate

2,123

2,351

+228

$66,183

2.22

N AICS Code & Description 5222 N ondepository Credit Intermediation 5179 Other Telecommunications Lessors of N onfinancial Intangible Assets (except Copyrighted 5331 W orks) 4882 Support Activities for Rail Transportation 5152 Cable and Other Subscription Programming 5112 Software Publishers Household Appliances and Electrical and Electronic Goods 4236 Merchant W holesalers 5171 W ired Telecommunications Carriers 5172 W ireless Telecommunications Carriers (except Satellite) 4246 Chemical and Allied Products Merchant W holesalers 5619 Other Support Services 5616 Investigation and Security Services 5415 Computer Systems Design and Related Services 4541 Electronic Shopping and Mail-Order Houses 5614 Business Support Services 6215 Medical and Diagnostic Laboratories 3119 Other Food Manufacturing 5182 Data Processing, Hosting, and Related Services 4855 Charter Bus Industry 3121 Beverage Manufacturing

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed. Figures exclude industries with fewer than 100 jobs in 2014. *Directional trend of EMSI employment projections through 2019. **Earnings per worker (EPW) = Total annual earnings of a regional industry (wages, salaries, profits, benefits, and other compensation) divided by the number of jobs in the industry. It is intended to provide an indication of the industry’s impact and is not equivalent to wages paid to individual workers.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 72

CITY OF IRVING, TX

FIGURE 28. TOP 30 INDUSTRIES IN IRVING RANKED BY NET JOB CHANGE, 2010-2014 A LARGE PORTION OF IRVING’S JOB GROWTH HAS TAKEN PLACE IN HIGH-PAYING INDUSTRIES Thanks to Irving’s large base of corporate headquarters and other major corporate operations, a large portion of the city’s recent job growth has taken place in sectors related to professional services and finance & insurance, many of which are high-paying jobs. Of the top 30 sectors ranked by net job growth from 2010-2014, 9 sectors have average annual earnings per worker of more than $100,000. N AICS Code & Description 5613 Employment Services 5415 Computer Systems Design and Related Services 7225 Restaurants and Other Eating Places 5242 Agencies, Brokerages, and Other Insurance Related Activities 5416 Management, Scientific, and Technical Consulting Services 5616 Investigation and Security Services 5222 N ondepository Credit Intermediation 5511 Management of Companies and Enterprises 5619 Other Support Services 5241 Insurance Carriers 5171 W ired Telecommunications Carriers 9036 Education and Hospitals (Local Government) 2382 Building Equipment Contractors 5221 Depository Credit Intermediation 4841 General Freight Trucking 4881 Support Activities for Air Transportation 5112 Software Publishers 4249 Miscellaneous N ondurable Goods Merchant W holesalers 4411 Automobile Dealers 6216 Home Health Care Services

Jobs 2010 9,390 9,255 7,771 2,991 4,820 4,815 8,942 4,979 1,308 3,985 4,733 6,104 2,878 4,441 3,057 322 2,363 536 1,428 1,424

Jobs 2014 14,089 11,576 9,024 4,169 5,911 5,718 9,843 5,801 2,104 4,678 5,313 6,641 3,369 4,930 3,525 777 2,805 951 1,813 1,740

N et Chg., 2 0 1 0 -1 4 +4,699 +2,321 +1,254 +1,178 +1,091 +903 +901 +821 +796 +693 +580 +537 +492 +490 +468 +456 +442 +415 +385 +315

Projected Chg.* p p p p p p p p p p q p p p p q p p p p

EPW ** $38,166 $110,618 $22,519 $88,886 $111,047 $46,480 $88,588 $120,100 $53,312 $94,657 $135,551 $54,183 $64,304 $102,222 $65,391 $40,436 $151,315 $61,410 $64,743 $25,747

LQ 2014 2 .7 8 4 .2 4 0.65 2 .2 2 2 .7 3 4 .5 1 1 1 .6 2 1 .9 1 4 .7 1 2 .5 1 6 .0 7 0.55 1.14 2 .0 3 2 .1 5 3 .0 8 6 .5 4 1 .9 3 1.05 0.91

973

1,284

+311

$107,843

5 .7 1

6111 Elementary and Secondary Schools

1,256

1,561

+305

$48,376

1.08

4529 Other General Merchandise Stores

855

1,138

+283

$27,753

0.44

2373 Highway, Street, and Bridge Construction

430

702

+273

$62,693

1 .6 0

5172 W ireless Telecommunications Carriers (except Satellite)

3,283

3,550

+267

$105,817

1 .6 6

5615 Travel Arrangement and Reservation Services

480

745

+265

$53,881

2 .4 6

5223 Activities Related to Credit Intermediation

617

874

+257

$79,038

2 .1 0

5239 Other Financial Investment Activities

756

988

+232

$176,616

1 .3 9

2,123

2,351

+228

$66,183

2 .2 2

5413 Architectural, Engineering, and Related Services

5313 Activities Related to Real Estate

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed. *Directional trend of EMSI employment projections through 2019. **Earnings per worker (EPW) = Total annual earnings of a regional industry (wages, salaries, profits, benefits, and other compensation) divided by the number of jobs in the industry. It is intended to provide an indication of the industry’s impact and is not equivalent to wages paid to individual workers.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 73

CITY OF IRVING, TX

WORKFORCE AND OCCUPATIONAL ANALYSIS FIGURE 29. AGE STRUCTURE IRVING HAS A RELATIVELY HIGH PROPORTION OF WORKING AGE ADULTS Irving has a much higher percentage of young adults (age 20 to 34) than regional, state, and US averages.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

FIGURE 30. EDUCATIONAL ATTAINMENT IRVING HAS A WELL-EDUCATED POPULATION AT THE UPPER END OF THE SPECTRUM The city has a higher percentage of residents with bachelor’s degrees or higher than regional, state, and national rates. However, Irving also has a relatively high percentage of residents without a high school education.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 74

CITY OF IRVING, TX

FIGURE 31. DISTRIBUTION OF EMPLOYMENT BY OCCUPATION, 2014 SHARE OF TOTAL EMPLOYMENT BY MAJOR OCCUPATIONAL GROUP Irving has a substantially higher percentage of jobs in office and professional occupations than the Dallas-Fort Worth metro area, Texas and the US. The city a relatively large share of workers in these occupations: office & administrative support (21.5 percent of all jobs); business & financial operations (8.7%); computer & mathematical (7.9%); and management (5.8%). Irving has a relatively low percentage of workers in these occupations: healthcare practitioners & technical (3.2%); education, training, & library (3.1%); and healthcare support (1.3%).

SO C Code & Description

Irving

Da lla s-Fort W orth M SA

Tex a s

43-0000 Office & Administrative Support

2 1 .5 %

1 7 .3 %

1 5 .9 %

1 5 .3 %

41-0000 Sales & Related

1 1 .3 %

1 1 .1 %

1 0 .6 %

1 0 .4 %

8 .7 %

5.7%

4.5%

4.9%

15-0000 Computer & Mathematical

7.9%

3.7%

2.7%

2.6%

53-0000 Transportation & Material Moving

7.0%

6.7%

6.4%

11-0000 Management

5.8%

5.0%

4.9%

5.3%

35-0000 Food Prep. & Serving Related

5.2%

8 .0 %

8 .2 %

49-0000 Installation, Maintenance, & Repair

4.7%

4.1%

4.3%

3.8%

51-0000 Production

4.0%

5.5%

5.6%

6.0%

47-0000 Construction & Extraction

3.8%

4.8%

5.9%

4.4%

29-0000 Healthcare Practitioners & Technical

3.2%

4.8%

5.4%

25-0000 Education, Training, & Library

3.1%

5.1%

5.7%

5.8%

37-0000 Building/ Grounds Cleaning & Maint.

2.8%

3.6%

3.8%

33-0000 Protective Service

2.2%

2.3%

2.2%

39-0000 Personal Care & Service

2.2%

3.5%

4.2%

3.9%

17-0000 Architecture & Engineering

2.1%

1.9%

2.0%

1.7%

27-0000 Arts, Entertainment, & Media

1.4%

1.5%

1.3%

1.7%

31-0000 Healthcare Support

1.3%

2.2%

2.4%

2.8%

19-0000 Life, Physical, & Social Science

0.7%

0.5%

0.7%

0.8%

21-0000 Community & Social Service

0.5%

1.1%

1.2%

1.6%

23-0000 Legal

0.4%

0.8%

0.7%

0.8%

55-0000 Military

0.3%

0.5%

1.4%

1.3%

45-0000 Farming, Fishing, & Forestry

0.1%

0.5%

0.7%

13-0000 Business & Financial Operations

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 75

CITY OF IRVING, TX

FIGURE 32. CONCENTRATION OF EMPLOYMENT BY OCCUPATION, 2014 LOCATION QUOTIENT (LQ) ANALYSIS BY MAJOR OCCUPATIONAL GROUP, US=1.00 Irving’s most highly concentrated occupational category is computer & mathematical workers (an LQ of 3.01) thank to the city’s large presence of major technology companies (Microsoft, NEC, Oracle, and others). This is a major area of strength that can be leveraged to support the expansion of existing technology firms and the attraction of new technology companies. The city also has occupational strengths in business & financial operations (1.78); architecture & engineering (1.40); and office & administrative support (1.28).

SO C Code & Description

Irving

Da lla s-Fort W orth M SA

Tex a s

15-0000 Computer & Mathematical

3 .0 1

1 .3 9

1.01

1.00

13-0000 Business & Financial Operations

1 .7 8

1.17

0.93

1.00

17-0000 Architecture & Engineering

1 .4 0

1.13

1.04

1.00

43-0000 Office & Administrative Support

1 .2 8

1.17

1.19

1.00

53-0000 Transportation & Material Moving

1.24

1.09

1.12

1.00

49-0000 Installation, Maintenance, & Repair

1.10

0.95

0.93

1.00

47-0000 Construction & Extraction

1.09

1.04

1.00

41-0000 Sales & Related

1.08

1.06

1.02

1.00

35-0000 Food Prep. & Serving Related

0.97

1.04

1.00

33-0000 Protective Service

0.86

1.08

1 .3 4

1.00

23-0000 Legal

0.81

0.87

0.76

1.00

11-0000 Management

0.80

0.67

0.86

1.00

37-0000 Building/ Grounds Cleaning & Maint.

0.73

0.93

0.95

1.00

51-0000 Production

0.67

0.92

1.00

29-0000 Healthcare Practitioners & Technical

0.64

0.98

1.00

39-0000 Personal Care & Service

0.60

0.90

1.00

25-0000 Education, Training, & Library

0.56

0.89

1.07

1.00

27-0000 Arts, Entertainment, & Media

0.53

0.89

0.99

1.00

31-0000 Healthcare Support

0.47

0.97

0.86

1.00

21-0000 Community & Social Service

0.45

0.77

0.86

1.00

19-0000 Life, Physical, & Social Science

0.29

0.67

0.72

1.00

55-0000 Military

0.19

0.36

1.05

1.00

45-0000 Farming, Fishing, & Forestry

0.07

0.17

0.61

1.00

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 76

CITY OF IRVING, TX

FIGURE 33. IRVING RELATIVE MEDIAN HOURLY WAGE RATES OCCUPATION, 2014 IRVING WAGES PRESENTED IN THE CONTEXT OF US WAGE RANGE Line = US wage range from 10th to 90th percentile; Markers = median hourly wage rates for US (x) and Irving (dot)

Irving’s wages are generally higher than the US median wage, but there are several differences across occupational categories. The city has significantly higher wages than the US average in the following categories: management; architecture & engineering; business & financial operations; community & social service; and sales & related occupations. Irving has significantly lower wages than the US average for the following groups: protective service (e.g., police and fire); production; and construction & extraction.

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 77

CITY OF IRVING, TX

BENCHMARK COMPARISONS The Dallas-Fort Worth metro area is one of the most competitive environments in the US for economic development. Irving competes with Dallas, Fort Worth, and dozens of suburbs to capture job growth, capital investment, and tax base. This section provides comparisons between Irving and a number of other cities in the surrounding metro area to provide a baseline understanding of how the city’s economy stacks up against competitor communities. The following cities are included in this benchmark comparison to Irving based two factors: 1) their role as major centers of employment and population in the Dallas-Fort Worth region; and 2) their status as competitors to Irving.

FIGURE 34. BENCHMARK CITIES IN THE DALLAS-FORT WORTH METRO AREA

Source: US Census Bureau, TIP Strategies.

BENCHMARK CITY Allen

POPULATION (2010)

POPULATION (2013)

GROWTH RATE (2010-2013)

84,246

92,020

9.2%

Arlington

365,438

379,577

3.9%

Carrollton

119,097

126,700

6.4%

Dallas

1,197,816

1,257,676

5.0%

Fort Worth

741,206

792,727

7.0%

Frisco

116,989

136,791

16.9%

Irving

216,290

228,653

5.7%

McKinney

131,117

148,559

13.3%

Plano

259,841

274,409

5.6%

99,223

104,475

5.3%

Richardson

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 78

CITY OF IRVING, TX

FIGURE 35. NUMBER OF INBOUND/OUTBOUND COMMUTERS, 2011 IRVING HAS THE 2ND HIGHEST AMOUNT OF INBOUND COMMUTERS Irving has a higher number of inbound commuters than any city besides Dallas, emphasizing its role as a premier employment center within the metro area.

Source: US Census Bureau, Local Employment Dynamics (LED) database

FIGURE 36. INBOUND/OUTBOUND COMMUTING RATIO*, 2011 IRVING HAS THE 2ND HIGHEST RATIO OF JOBS TO EMPLOYED RESIDENTS Irving has a higher jobs/employed residents ratio than any city besides Richardson, highlighting the city’s importance as a major business center.

Source: US Census Bureau, Local Employment Dynamics (LED) database *A ratio of 1.0 represents an equal number of jobs and employed residents within the city. Cities with inbound/outbound commuting ratios significantly above 1.0 are centers of employment. Cities with ratios significantly below 1.0 are “bedroom communities” dominated by housing.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 79

CITY OF IRVING, TX

FIGURE 37. POPULATION & MEDIAN AGE IRVING IS A RELATIVELY YOUNG CITY AND IS GROWING MUCH FASTER THAN THE US AVERAGE Irving’s population grew by 5.7 percent from 2010 to 2013, more than twice the US growth rate of 2.2 percent for the same period. However, several benchmark cities (especially Frisco, McKinney, and Allen) grew much faster. 2 0 1 0 to 2 0 1 3 City

2013

Frisco

116,989

136,791

+87,022

+16.9%

34.5

McKinney

131,117

148,559

+6,115

+13.3%

33.0

Allen

N et Chg.

M edia n Age

2010

% Chg.

84,246

92,020

+7,774

+9.2%

35.1

Fort W orth

741,206

792,727

+8,221

+7.0%

31.5

Carrollton

119,097

126,700

+118,346

+6.4%

36.2

Irving

216,290

228,653

+12,363

+5.7%

31.6

Plano

259,841

274,409

+6,115

+5.6%

37.5

Richardson Dallas Arlington US

99,223

104,475

+5,252

+5.3%

36.5

1,197,816

1,257,676

+15,481

+5.0%

32.0

365,438

379,577

+30,221

+3.9%

32.0

3 0 9 .3 M

3 1 6 .1 M

+ 6 .8 M

+ 2 .2 %

3 7 .3

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

FIGURE 38. CIVILIAN LABOR FORCE & UNEMPLOYMENT RATE IRVING HAS A LOW UNEMPLOYMENT RATE AND A RAPIDLY GROWING LABOR FORCE Irving’s labor force grew by 7.4 percent from 2010 to 2014, more than 7 times the US rate during that period.

2 0 1 0 to 2 0 1 4 N et Chg. % Chg.

Unem ploy m ent Ra te (Feb. 2 0 1 5 )

City

Current *

2010

2014

Frisco

216,700

63,017

74,702

+11,685

+18.5%

3.0

78,446

68,048

78,040

+9,992

+14.7%

3.5

McKinney Allen

614,034

45,446

50,447

+5,001

+11.0%

3.5

Fort W orth

184,477

357,927

390,808

+32,881

+9.2%

4.1

Carrollton

270,044

69,266

75,007

+5,741

+8.3%

3.6

Plano

320,546

142,951

153,708

+10,757

+7.5%

3.8

Irving

1,023,182

115,709

124,307

+8,598

+7.4%

3.9

Richardson

320,546

53,124

56,910

+3,786

+7.1%

3.9

Dallas

843,675

600,009

638,792

+38,783

+6.5%

4.3

Arlington

911,785

193,018

205,170

+12,152

+6.3%

4.1

1 5 6 .2 M

1 5 3 .9 M

1 5 5 .4 M

+ 1 .5 M

+ 1 .0 %

5 .8

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 80

CITY OF IRVING, TX

FIGURE 39. RACIAL DIVERSITY (WHITE POPULATION AS PERCENT OF TOTAL), 2013 IRVING HAS A MORE DIVERSE POPULATION THAN MOST OF ITS BENCHMARKS Irving’s white population makes up only 30 percent of the city’s total population, making the community much more diverse than most of the benchmark cities.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

FIGURE 40. FOREIGN-BORN POPULATION (AS PERCENT OF TOTAL), 2013 IRVING HAS A MUCH HIGHER LEVEL OF FOREIGN-BORN RESIDENTS THAN ITS BENCHMARKS CITIES More than one-third (34 percent) of Irving’s residents were born outside the US, making the community far more international than any of the benchmark cities.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 81

CITY OF IRVING, TX

FIGURE 41. PERCENT OF POP. (AGE 25+) WITH BACHELOR’S DEGREE OR HIGHER, 2013 MORE THAN ONE-THIRD OF IRVING’S ADULT RESIDENTS HOLD A BACHELOR’S DEGREE OR HIGHER The city has a higher percentage of adults with a bachelor’s degree or higher than Dallas, Arlington, and Fort Worth, but is not as well-educated as most of the benchmark cities.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

FIGURE 42. PERCENT OF POP. (AGE 25+) WITHOUT HIGH SCHOOL DIPLOMA, 2013 MORE THAN 20 PERCENT OF IRVING’S ADULT RESIDENTS LACK A HIGH SCHOOL EDUCATION Only Dallas and Fort Worth have a higher percentage of adults without a high school diploma than Irving.

Source: US Census Bureau, Population Estimates Program; 2009-2013 American Community Survey 5-Year Estimates.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 82

CITY OF IRVING, TX

FIGURE 43. K-12 STUDENT PERFORMANCE, 2014 IRVING ISD IS THE LOWEST-PERFORMING SCHOOL DISTRICT AMONG THE BENCHMARKS Irving ISD ranks 844th among 965 total school districts in Texas according to its test scores as reported by School Digger. Three of the benchmark districts (Frisco, Allen, and Coppell) rank in the top 10 percent o.

School District

2 0 1 4 Ra nk (of 9 6 5 Districts in Tex a s)

N um ber of Students

2 0 1 4 Ra nk Score

Ra nk Cha nge (from 2 0 1 3 )

Frisco ISD

42,707

0.925

-7

Allen ISD

19,894

0.894

-15

Coppell ISD

10,999

0.853

Plano ISD

152

55,185

0.760

-1

McKinney ISD

259

24,443

0.674

-30

Richardson ISD

312

38,043

0.634

-27

Carrollton-Farmers Branch ISD

375

26,385

0.591

-30

Arlington ISD

665

65,001

0.379

-60

Dallas ISD

689

158,919

0.361

-29

Fort W orth ISD

761

83,419

0.296

-32

844

3 5 ,0 3 0

0 .2 1 8

-1 5

Irving ISD

Source: School Digger

FIGURE 44. HOUSING PERMITS ISSUED PER 1,000 RESIDENTS, 2010-2014 IRVING HAS ADDED NEW HOUSING AT A SLOWER PACE THAN MOST OF THE BENCHMARK CITIES The city added new housing units (including all single-family and multi-family) from 2010-2014 at a faster pace than Dallas, Plano, and Arlington, but slower than most of the benchmark cities.

Source: US Dept. of Housing and Urban Development, Building Permits Database.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 83

CITY OF IRVING, TX

FIGURE 45. WALKABILITY IRVING HAS A HIGHER WALKSCORE (FROM 1 TO 100) THAN MOST OF ITS COMPETITOR CITIES Walk Score is a ranking between 0 and 100 that grades the walkability of cities and neighborhoods across the US using a patented system that analyzes data from a wide range of sources. Irving has a Walk Score of 42, higher than all of the benchmarks cities except Dallas. The southern section of Irving is the most walkable part of the city.

Source: Walk Score

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 84

CITY OF IRVING, TX

APPENDIX E: TARGET INDUSTRY ANALYSIS The selection of target industries is traditionally based on quantitative factors such as workforce, available industrial sites, and incentives. Our target industry recommendations for Irving are not based solely on these factors, but also take into account qualitative factors (such as conversations with local/regional business leaders and consulting experience gained from prior work in the Dallas-Fort Worth MSA) and strategic issues (including state and national economic trends and planned investments in regional infrastructure).

FIGURE 46: TARGETING APPROACH

Quantitative

Qualitative

First, a quantitative analysis was conducted to help identify potential target industries. This analysis included the following:

Strategic



Locational advantages. We assessed Irving’s geographic advantages (its central location in the MSA and proximity to DFW International Airport) which can be leveraged for economic development.



Economic trends analysis. We analyzed the trends affecting economic development in Irving, the Dallas-Fort Worth MSA, and Texas to provide a foundational understanding of the issues and opportunities facing business retention, expansion, and recruitment in Irving.



Commuting patterns. We mapped Irving’s labor shed (where Irving workers live) and commute shed (where Irving’s employed residents work) using data from the U.S. Census Bureau’s LEHD (Longitudinal Employer Household Dynamics) database.



Industry analysis. We calculated location quotients (LQs) to identify the industries in which Irving’s employment is most concentrated relative to the national average, which suggests a competitive advantage. An LQ is defined as a local industry’s share of total local employment divided by the same industry’s share of employment at the national level.



Workforce and occupational analysis. We calculated LQs for occupational categories to identify competitive advantages in Irving’s workforce. We also analyzed other variables to better understand the community’s workforce including age structure, educational attainment, and wages by occupational group.

Source: TIP Strategies

Second, a qualitative analysis was conducted through roundtable discussions and interviews with key stakeholders. During the course of the Discovery phase, we met with nearly 150 business and community leaders. This helped us better understand the opportunities for retention and expansion of existing companies and for attraction of new businesses. These stakeholder discussions and interviews also gave us insights into the barriers holding back the community’s economic potential. Perhaps most importantly, our conversations with these leaders (business executives in particular) provided us with an understanding of the regional competition for business expansion, real estate development and investment, and the attraction of skilled workers. Lastly, we used a strategic lens to evaluate the potential of target sectors based on: 1) a review of relevant cluster initiatives already in progress locally, regionally, and at the state level; 2) an understanding of state, national, and global trends; and 3) the experience of the consulting team in evaluating target markets. This offers an opportunity to identify niches outside of traditional clusters, including emerging industries.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 85

CITY OF IRVING, TX

RECOMMENDED TARGET INDUSTRIES FOR IRVING Based on the quantitative/qualitative/strategic targeting approach, we recommend that Irving organize its business retention, expansion, and recruitment activities around the following target industries: 

Corporate Headquarters



Corporate Training



Foreign-Based Corporations



Software & Information Technology



Telecommunications



Finance & Insurance



Health Care Specialties & Laboratories



Professional Services



Industrial Technology



National Associations

The following section describes in more detail the quantitative analysis, qualitative analysis, and strategic considerations that led us to the ten target sectors listed above.

QUANTITATIVE ANALYSIS

FIGURE 47: TARGET INDUSTRY CRITERIA • • • •

•

Location: the area’s advantages should correspond to critical facility location factors Growth: growth must be anticipated in the sector and be likely in the region Size: must be large enough to merit a concentrated development effort Image: should be desirable in terms of land use, job quality, economic cycles, and long-term development linkages Infrastructure: infrastructure requirements should be compatible with the area’s capacity and resources Multipliers: growth in the sector should have positive spill-over effects in other sectors

As part of the Economic Assessment, our analysts Source: TIP Strategies reviewed industry trends (LQs, net job change, and earnings per worker) at the 4-digit NAICS level for Irving and the Dallas-Fort Worth MSA. This work identified a number of high-performing industries locally and regionally and is an important consideration impacting target industry recommendations. Of the ten target industries, nine have one or more corresponding NAICS categories (foreign-based corporations do not). Our quantitative analysis identified the primary sectors within each target industry and compared the performance of these sectors in Irving and the Dallas-Fort Worth MSA. The figure on the following page shows the analysis of sectors within five industries and the figure on the following page shows the remaining four industries. In general, these sectors are performing well in the MSA. Also, most of them are performing even better (and are more highly concentrated) in Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 86

CITY OF IRVING, TX

FIGURE 48. TARGET INDUSTRY PERFORMANCE IN IRVING & DALLAS-FORT WORTH MSA 2 0 1 4 Loca tion Q uotient (LQ ) N AICS & DESCRIPTIO N

2 0 1 4 Cha nge Jobs '1 0 -'1 4

2014 Jobs

Irving

2 0 1 4 Ea rnings Per W ork er*

Cha nge '1 0 -'1 4

DFW M SA

Irving

DFW M SA

Irving

DFW M SA

5511 Management of Companies & Enterprises

1.91

0.73

5,801

+821

35,931

Corpora te Tra ining 6114 Business Schools & Computer & Management Training

1.65

0.93

171

+15

1,555

-97

5112 Software Publishers

6.54

1.19

2,805

+442

8,256

+624

$151,315 $150,962

5182 Data Processing, Hosting, & Related Services

3.60

2.10

1,415

-105

13,330

-149

$118,346 $128,850

3341 Computer & Peripheral Equipment Mfg.

1.67

0.67

394

+147

2,570

3342 Communications Equipment Mfg.

0.00

4.09

3344 Semiconductor & Other Electronic Component Mfg.

0.50

2.46

262

+96

3343 Audio & Video Equipment Mfg.

0.00

0.49

3345 N avigational, Measuring, Electromedical, & Control Instruments Mfg.

0.93

0.84

516

-234

3346 Mfg. & Reproducing Magnetic & Optical Media

0.00

0.58

5171 W ired Telecommunications Carriers

6.07

1.85

5,313

5172 W ireless Telecommunications Carriers (except Satellite)

5.71

2.34

5179 Other Telecommunications

9.81

2.31

5211 Monetary Authorities-Central Bank

0.00

8.20

5221 Depository Credit Intermediation

2.03

1.14

4,930

11.62

3.20

5223 Activities Related to Credit Intermediation

2.10

5231 Securities & Commodity Contracts Intermediation & Brokerage

Corpora te Hea dqua rters +1,972 p

$120,100 $125,617

$84,857

$68,930

Softw a re & Informa tion Technology

Telecommunica tions +1,376 p

$77,219

$115,571

9,256

+916

$136,694

20,876

-1,159

$97,111

$141,417

230

-251

$87,816

7,527

-1,994

-614

+580

26,170

1,284

+311

8,511

1,215

-197

4,625

3,413

+490

44,701

9,843

+901

2.56

874

+257

0.52

1.30

342

+67

5232 Securities & Commodity Exchanges

0.11

0.21

<10

5239 Other Financial Investment Activities

1.39

1.34

988

5251 Insurance & Employee Benefit Funds

0.00

0.05

5241 Insurance Carriers

2.51

1.22

5242 Agencies, Brokerages, & Other Insurance Related Activities

2.22

1.35

4,169

6215 Medical & Diagnostic Laboratories

3.90

1.19

1,491

+115

6216 Home Health Care Services

0.91

1.55

1,740

+315

6214 Outpatient Care Centers

0.39

0.55

411

+60

6223 Specialty (except Psychiatric & Substance Abuse) Hospitals

0.00

1.07

6211 Offices of Physicians

0.71

1.10

2,603

+180

6231 N ursing Care Facilities (Skilled N ursing Facilities)

0.25

0.66

589

5413 Architectural, Engineering, & Related Services

1.66

1.06

3,550

5415 Computer Systems Design & Related Services

4.24

1.34

5416 Management, Scientific, & Technical Consulting Services

2.73

1.28

5,911

5411 Legal Services

0.16

1.03

307

5412 Accounting, Tax Preparation, Bookkeeping, & Payroll Services

1.01

1.12

1,633

5613 Employment Services

2.78

1.49

263

$125,761 $116,213 -

$130,383

+1,927 p

$135,551 $126,301

-285

$107,843 $110,632

-722

$111,402

$93,493

+2,215 p

$108,217

+4,575 p

$102,222

$89,530

43,834

+1,523 p

$88,588

$86,817

17,210

+5,337 p

$79,038

$79,804

13,678

+1,333 p

+232

15,381

-53

<10

4,678

+693

36,789

+4,902 p

$94,657

$92,963

+1,178 p

40,880

+6,908 p

$88,886

$78,960

7,355

+1,197 p

$75,659

$71,453

48,023

+8,317 p

$25,747

$29,116

9,457

+1,813 p

$63,434

$59,636

5,168

+1,400 p

$58,082

64,636

+7,354 p

25,060

+1,597 p

$39,347

$37,475

+267

36,572

+6,283 p

$105,817

$94,911

Fina nce & Insura nce

5222 N ondepository Credit Intermediation

-2

+3,320 p +0

$174,809 $173,665 -

$128,711

$176,616 $139,179

Hea lth Ca re Specia lties & La bora tories

$117,373 $107,362

Professiona l Services 11,576 +2,321 p

59,308 +14,582 p

$110,618 $107,339

+1,091 p

44,839

+1,091 p

$111,047 $100,762

32,394

+1,985 p

$114,240 $107,742

+11

29,473

+2,433 p

$68,194

$75,684

122,284 +40,852 p

$38,166

$36,001

14,089 +4,699 p

Source: EMSI, 2014.4 – QCEW Employees, Non-QCEW Employees, and Self-Employed. *Earnings per worker = Total annual earnings of an industry (wages, salaries, profits, benefits, and other compensation) divided by the number of jobs in the industry. It is intended to provide an indication of the industry’s impact and is not equivalent to wages paid to individual workers.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 87

CITY OF IRVING, TX

FIGURE 49. TARGET INDUSTRY PERFORMANCE IN IRVING & DALLAS-FORT WORTH MSA (CONTINUED) 2 0 1 4 Loca tion Q uotient (LQ ) N AICS & DESCRIPTIO N

2 0 1 4 Cha nge Jobs '1 0 -'1 4

2014 Jobs

Irving

2 0 1 4 Ea rnings Per W ork er*

Cha nge '1 0 -'1 4

DFW M SA

Irving

DFW M SA

Irving

DFW M SA

2111 Oil & Gas Extraction

1.64

3.12

498

+174

15,276

+2,377 p

$324,855 $227,039

2131 Support Activities for Mining

0.44

1.59

279

+148

16,450

+7,001 p

3119 Other Food Mfg.

3.63

0.84

935

+145

3,515

3121 Beverage Mfg.

3.10

0.94

847

+153

4,154

3241 Petroleum & Coal Products Mfg.

1.66

0.58

271

1,523

3259 Other Chemical Product & Preparation Mfg.

1.92

1.14

237

+37

2,262

+230

$82,300

$87,459

3272 Glass & Glass Product Mfg.

1.92

0.54

236

+119

1,070

+218

$57,897

$58,120

3323 Architectural & Structural Metals Mfg.

0.91

1.69

465

-42

13,918

+922

$58,770

$58,682

8112 Electronic & Precision Equipment Repair & Maintenance 8113 Commercial & Industrial Machinery & Equipment (except Automotive & Electronic) Repair & Maintenance

1.27

2.06

236

-12

6,171

+1,106 p

$61,223

$58,140

1.68

0.91

560

-72

4,919

-5

$74,980

$61,094

8132 Grantmaking & Giving Services

0.39

0.57

+16

1,741

+378

$82,989

$74,559

8133 Social Advocacy Organizations

0.63

0.32

179

+38

1,487

+115

$43,901

$40,622

8134 Civic & Social Organizations

1.73

0.69

984

+36

6,325

+137

$40,885

$29,549

8139 Business, Professional, Labor, Political, & Similar Organizations

0.83

0.57

499

+87

5,524

+538

$84,834

$64,115

Industria l Technology $105,117

$90,593

$86,903

$87,646

+1,156 p

$78,671

$86,894

-321

$153,885 $151,112

N a tiona l Associa tions

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 88

CITY OF IRVING, TX

QUALITATIVE ANALYSIS The viewpoints of Irving’s business and community leaders heavily influenced the selection of target industries. To an equal degree, the perspective of business executives and other key decision makers (site location consultants, real estate brokers, and economic development professionals) from the rest of the Dallas-Fort Worth MSA impacts the potential for business retention, expansion, and recruitment in Irving. During the Discovery phase, we received candid feedback from dozens of stakeholders (mostly business executives) from Irving and the surrounding Metroplex. While some of the observations are well known, they bear repeating. The most important findings from this input, as they relate to target industries, are summarized below: 

DFW International Airport is the city’s strongest asset for economic development.



Irving’s central location within the Metroplex (and the region’s central US location) is a significant advantage.



Surprisingly, most large companies in Irving do not report difficulty in attracting and retaining quality workers.



Companies are increasingly seeking walkable, mixed-use settings (with good transit access) for their corporate expansions and relocations.

STRATEGIC CONSIDERATIONS Finally, it is important to consider regional and national trends and other strategic factors that impact Irving’s ability to grow target industries. These considerations are summarized below: 

Access to talent is the number one success factor for most companies. Irving’s central location within the Metroplex provides access to a large pool of talent, giving the city a significant advantage in the growth of businesses that require large numbers of highly skilled workers.



Workforce diversity (racial/ethnic, age, cultural, gender, and other categories) is becoming more important to businesses generally, and large corporations especially. Irving is well-positioned to capitalize on this trend for two reasons: 1) several of Irving’s existing corporations are leaders in this space; and 2) Irving’s population is more diverse than any of its Metroplex competitor cities.



DFW International Airport international passenger traffic grew at an average annual rate of 8% from 2010-2014, much faster than any of the other 10 busiest international airports. The expanded connectivity to global business destinations offers Irving a strong avenue for international business development.



The next generation of cellular technology, called 5G, is in the R&D phase with an estimated adoption date around 2020. The high concentration of telecommunications companies in Irving and the Metroplex represent an opportunity to position the city as the premier location for 5G innovation.



The Irving Convention Center at Las Colinas is a unique asset that Irving can leverage for economic development, especially through events that attract decision makers within the city’s target industries.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 89

CITY OF IRVING, TX

TARGET INDUSTRY RECOMMENDATIONS This section provides a brief explanation of factors for each industry that answers the question: Why is this a good target for Irving? Where appropriate, we have included specific niches that have favorable growth prospects or where Irving has a comparative advantage.

CORPORATE HEADQUARTERS This industry comprises businesses (excluding government establishments) primarily engaged in administering, overseeing, and managing other establishments of the company or enterprise. These establishments normally undertake the strategic or organizational planning and decision-making role of the company or enterprise. Establishments in this industry may hold the securities of the company or enterprise. While the administrative functions are classified under a single code in the NAICS system, corporate and regional headquarters operations occur across all industry clusters. Corporate headquarters are a welcome addition to any local economy. In addition to their value as a source of highwage employment, these facilities are often prized for reasons that go beyond job creation. The announcement of a major corporation’s plans to relocate can substantially raise the profile of a community. Over time, a corporate office can become indelibly linked in the mind of the public with their home base: Boeing and Seattle; Wal-Mart and Bentonville; Whole Foods and Austin. Along with an image boost, corporate locations can also provide a significant benefit to the local economy. Beyond the direct impact of wages, corporate profits are often invested locally through spending by executives and through philanthropic activities. Given their strong local ties, however, corporate headquarters are typically not quick to relocate. While figures are not readily available, Area Development magazine estimates that approximately 5 percent of corporate headquarters move each year. Reasons firms relocate are varied. The most commonly cited reasons include repositioning the firm in the marketplace, consolidating operations after a merger, and reducing costs. Corporate headquarters (HQs) are perhaps the most obvious target for Irving. Irving’s LQ in this industry is 1.91, more than double the Dallas-Fort Worth MSA’s LQ of 0.73. The city’s easy access to DFW International Airport and Dallas Love Field, its central location within the nation’s fourth largest metro area, and the existing presence of many corporate facilities are all factors that make Irving a natural location for corporate HQs. It is important to make the distinction between corporate HQs and major corporate operations (other than the headquarters itself). Irving has both, but the vast majority of the city’s employment is not in the headquarters category. Both corporate HQs and major corporate operations have similar characteristics, but a corporate HQ can bring unique economic benefits and is less likely to move to another city. A final consideration that makes Irving a favorable location for corporate HQs is the availability of large sites for development and redevelopment (such as the former Texas Stadium site) with its light rail access. Recent and ongoing corporate expansions are taking place in walkable, mixed-use districts (State Farm in Richardson, Liberty Mutual in Plano, and the strong interest from major corporations in Irving’s former Texas Stadium site).These lend credence to the notion that walkable developments are important for attracting major corporate facilities. Beyond the hundreds of acres available for development along the DART Orange Line in Irving, amenities (the Music Factory and other projects) will play a role in corporate HQ recruitment.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 90

CITY OF IRVING, TX

POTENTIAL NICHE SEGMENTS: 

Corporations seeking an HQ in the Central Time Zone



Corporations seeking an HQ adjacent to a major international airport



Corporate HQs within Irving’s strongest sectors (finance & insurance, software, telecommunications)

CORPORATE TRAINING For similar reasons to the corporate HQs target, Irving is a great location for corporate training facilities. The DallasFort Worth MSA as a whole is well-suited for the growth of corporate training functions. This is due to the large number of corporate facilities in the region and their central US location. But Irving is particularly well-positioned within the Metroplex to recruit corporate training centers for three reasons. 1) Several major corporations already have a significant training center in Irving. AT&T, Oracle, Nissan North America and other companies operate training centers in Irving that draw thousands of employees from across the US on an annual basis. 2) The city’s location adjacent to DFW International Airport and its close proximity to Dallas Love Field give it easy access to the entire US (and, indeed, the world). 3) The Irving Convention Center at Las Colinas is a huge asset for the attraction of corporate training centers. The recruitment of other corporate events (annual shareholder meetings, quarterly investor meetings, user conferences, etc.) is also a good fit for Irving for all the same reasons. POTENTIAL NICHE SEGMENTS: 

Software & IT training



Management/executive leadership training

FOREIGN-BASED CORPORATIONS International business attraction and foreign direct investment are appealing strategies to many economic developers, in part because recruitment successes are generally high profile and generate excitement. However, for most communities, the domestic business opportunities far outweigh the potential for international development. Most cities would be ill-advised to spend significant resources pursuing global opportunities when there are economic development possibilities closer to home. Irving is not one of those cities. With nearly 100 foreign-based firms from more than 20 countries, Irving is well-positioned to make international business development an additional core component of its economic development program. DFW International Airport is currently in a growth mode, adding nonstop flights to major global business centers in multiple continents and increasing international passengers at a faster pace than the other 10 busiest international airports. Given the city’s unique assets (DFW International Airport, the city’s large number of US- and foreign-based corporate offices, and access to a large pool of talent), Irving can easily promote itself as a logical choice for business expansion and relocation for multi-national corporations. The city’s high level of racial/ethnic diversity, including a large percentage of foreign-born residents, supports its position as a community that welcomes international residents and visitors. Even though the majority of business recruitment and expansion targets for Irving will come from the US, the global marketplace offers a wide range of economic development opportunities. This will need to be a focused effort, building on business relationships with existing international companies. Beyond the international development potential, this strategy can also build excitement about economic development and strengthen the internal relationships among Irving’s business and community leaders.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 91

CITY OF IRVING, TX

POTENTIAL NICHE SEGMENTS: 

Large foreign-based corporations (from Latin America, South Asia, East Asia, and Europe) seeking initial entry into the US market, or considering the consolidation of multiple US offices into a single, central location



Growing foreign-based firms with an existing presence in the Dallas-Fort Worth region



High-growth small- to mid-size foreign-based firms seeking their first US location

SOFTWARE & INFORMATION TECHNOLOGY The Economic Assessment revealed several competitive advantages Irving possesses in the software & IT industry. The city’s LQ for software publishers is 6.54 compared with an LQ of 1.19 for the Dallas-Fort Worth MSA Irving’s LQ for data processing, hosting, and related services is 3.60, compared to an LQ of 2.10 for the MSA as a whole. Irving has several major technology companies among its largest employers (NEC Corporation of America, Microsoft, Oracle, and Computer Sciences Corporation). The occupational category with the highest LQ in Irving (3.01) and the Dallas-Fort Worth metro area (1.39) is computer and mathematical occupations. The city’s central location within the region, its access to highly skilled workers, and the Irving Convention Center at Las Colinas are all significant advantages that can support further growth in Irving’s software & IT industry. The annual InnoTech conference that takes place at the convention center is both a testament to these advantages and is yet another asset that can be leveraged to grow this industry. POTENTIAL NICHE SEGMENTS: 

Enterprise software



Business services software



Cyber security (private sector especially)



Financial applications/payments software



Data centers (enterprise & colocation)

TELECOMMUNICATIONS From a regional perspective, telecommunications is one of the most recognizable industry clusters in the Metroplex. With the AT&T global headquarters in Dallas, the “Telecom Corridor” in Richardson (Ericsson, Samsung, MetroPCS, and other companies), and the major telecommunications companies in Irving (AT&T, Verizon, SprintNextel, Frontier Communications, and Nokia), this industry is a strong target for the city’s economic growth prospects. Irving has a high concentration of jobs in several telecommunications and related sectors: computer and peripheral equipment manufacturing (an LQ of 1.67 in Irving and an LQ of 0.67 in the Dallas-Fort Worth MSA); wired telecommunications carriers (an LQ of 6.07 in Irving and an LQ of 1.85 in the MSA); wireless telecommunications carriers—except satellite (an LQ of 5.71 in Irving and an LQ of 2.34 in the MSA); and other telecommunications (an LQ of 9.81 in Irving and an LQ of 2.31 in the MSA). The increasing connections between the telecommunications industry and the software & IT industry further support the potential for Irving to attract jobs and investment in this industry, given the city’s strengths in both areas.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 92

CITY OF IRVING, TX

POTENTIAL NICHE SEGMENTS: 

5G technology



Mobile applications

FINANCE & INSURANCE Finance & insurance has historically been a strong sector in the Dallas-Fort Worth region, and it continues to perform well with an LQ of 1.51. The recent relocation and expansion of Liberty Mutual Insurance from Boston to Plano further underscores the strength of this industry at the regional level. The Dallas-Fort Worth MSA has more jobs in finance & insurance than every US metro area except for New York, Chicago, and Los Angeles, but is growing this sector at a much faster pace. In fact, if 2010-2014 job growth rates continue, the DFW region will surpass Los Angeles and Chicago to become the second highest center of finance & insurance jobs in the US by 2017. In Irving, this sector is an even more prominent piece of the local economy, with an LQ of 2.92. The city has several finance & insurance firms among its largest employers (CITI, Allstate Insurance, ACE Cash Express, State Farm, and Cottonwood Financial). Also, the close ties between this sector and corporate HQs make it a good target for additional growth. POTENTIAL NICHE SEGMENTS: 

International banks entering US market



Banks serving international populations



Corporate benefits & insurance



Consumer finance

HEALTH CARE SPECIALTIES & LABORATORIES The U.S. health care sector has grown steadily over the last decade. In fact, the health care industry continued to gain jobs at a solid rate through the Great Recession, showing itself to be “recession-proof.” Most recently, the Supreme Court’s decision upholding the Affordable Care Act is translating into a surge of health care stock valuations with expected increases in investments nationally. And the continued aging of the U.S. population will inevitably create more growth opportunities in the health care sector. Health care spending as a percentage of GDP is projected to rise from 17.4 percent in 2013 to 19.3 percent in 2023, according to the Centers for Medicare and Medicaid Services. The fastest growing segments of health care spending include: home health care, medical equipment, and medical specialties (physical therapy, optometry, podiatry, and chiropractic medicine). Another big trend affecting the health care sector is the increasing reliance on information technology (IT). With continued technological advancements in fields like health informatics and diagnostics, the boundaries between health care and IT are virtually non-existent. This is an advantage for Irving with its large presence of IT companies and IT workers in major corporations. At first glance, Irving’s low concentration of health care jobs (an LQ of 0.43) might seem like a negative factor. However, in some cases, a low LQ can indicate a gap that needs to be filled. In Irving’s case this is true. The city’s health care sector has not kept up with recent and ongoing population growth and job growth in other sectors. Recent and projected population growth in Irving and surrounding communities makes the development of new medical facilities an attractive option for investment. Organizations such as the Las Colinas Medical Center, the Texas Center for Proton Therapy, and Baylor Scott & White Medical Center at Irving also play a role in supporting

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 93

CITY OF IRVING, TX

the growth of the local and regional health care industry. The recent expansion of McKesson (pharmaceuticals and medical products distributor) into Irving with a major new regional HQ is a good example of the opportunities available in this sector. POTENTIAL NICHE SEGMENTS: 

Diagnostic laboratories



Urgent care clinics



Medical specialties

PROFESSIONAL SERVICES Professional services include legal, accounting, architecture and engineering, computer systems design, management/scientific/technical consulting, advertising, and related services. This is the modern supply chain for corporations. Just like manufacturing firms rely on a support system of materials and equipment suppliers, logistics providers, and other support functions, modern corporations depend on a wide range of professional service providers. Along with New York, Chicago, and Los Angeles, Dallas-Fort Worth is one of the premier business centers in North America. The metro area has a diverse base of corporate headquarters, regional headquarters of large corporations, and divisional headquarters of large companies. And because professional service providers naturally tend to cluster around their primary customer base—large corporations—the Dallas-Fort Worth region has a high concentration of professional service firms. Irving has a relatively higher concentration of each of these (corporate HQs, other corporate operations, and professional services). Irving has a high concentration of jobs in computer systems design and related services (an LQ of 4.24 for Irving, compared with an LQ of 1.34 for the DFW metro area) and management, scientific, and technical consulting services (an LQ of 2.73 for Irving and an LQ of 1.28 for the DFW metro area). Irving also has strengths in architectural, engineering, and related services with an LQ of 1.66 despite the DFW metro area’s lower LQ of 1.06 in this sector. The most logical professional services firms for Irving to target include those that support and/or benefit from the city’s existing corporate operations. Another potential growth area consists of firms that rely on convenient airport access (management consulting firms, corporate training providers, and related businesses). POTENTIAL NICHE SEGMENTS: 

Legal



Management consulting



Import/export specialists



Marketing



Computer systems design & related services



Architecture & engineering

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 94

CITY OF IRVING, TX

INDUSTRIAL TECHNOLOGY Industrial technology consists primarily of the oil and gas industry and advanced manufacturing sectors. This industry also includes the maintenance and repair of industrial machinery and equipment. These firms do not account for a large share of Irving’s total jobs, but industrial businesses are an important part of the local economy. In fact, although Irving represents the second largest office employment center in the Metroplex (after downtown Dallas), the city contains an even greater amount of industrial space. Most of Irving’s industrial businesses are clustered along State Highway 114 immediately north of DFW International Airport (in the International Commerce Park and the DFW Freeport Park), along Highway 161 east of DFW International Airport, and in the southeastern section of the city along Loop 12. Industrial businesses account for several of the city’s largest employers: Holt Cat, FedEx Freight, Dr Pepper/Snapple Group, Frito-Lay Inc., and Aviall Services, Inc. a Boeing Company. In addition to the manufacturing businesses located in Irving’s industrial zones, the city is home to several corporate headquarters of large industrial firms including: ExxonMobil, Celanese, Fluor, Flowserve, Pioneer Natural Resources, Commercial Metals Company, and NCH Corporation. Industrial technology is a good target for Irving for several reasons: it helps to diversify the local economy which is largely dependent on office employment, it provides well-paying middle skill jobs for local residents, and it complements many corporate HQ facilities of large industrial firms. The biggest challenge to growing this sector in Irving is the lack of developable sites that lend themselves to large-scale industrial facilities. Most of Irving’s large remaining sites are along the DART Orange Line. Nonetheless, there are several areas within Irving that will remain industrial in nature: the properties adjacent to DFW International Airport along State Highway 114, the area along Valley View Lane in southwestern Irving, and the properties along Loop 12 in southeastern Irving. The retention and expansion of existing industrial businesses in these districts should be a priority for the city, along with the recruitment of new high-value industrial firms. Another consideration is the recent decline in oil prices, which has impacted the oil and gas sector globally and domestically. This has led to sizeable job losses in oil-producing regions and among the large oil production companies and related service providers. Significant job losses in this sector continue to take place across Texas, primarily in Houston, Midland-Odessa, and the Eagle Ford Shale region. The Metroplex is much better positioned than Houston to weather the impacts of low oil prices over a sustained period. Even though the region is home to many oil and gas firms’ corporate HQs, it has a much lower concentration of jobs in this sector than Houston. The industry’s current state of turmoil represents an opportunity for aggressive communities seeking to capitalize on the ongoing and future consolidations, mergers, and acquisitions of large energy companies. Irving is especially wellpositioned to take advantage of this opportunity given the existing presence of corporate HQs of large energy firms (ExxonMobil, Flowserve, Pioneer Natural Resources) and its central location adjacent to DFW International Airport. POTENTIAL NICHE SEGMENTS: 

Oil & gas



Advanced manufacturing



Corporate HQs & related functions of large industrial firms

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 95

CITY OF IRVING, TX

NATIONAL ASSOCIATIONS National associations include nonprofit business, industry, trade, and professional associations and organizations. This also includes civic and social organizations and philanthropic grantmaking foundations. Another way of viewing these types of entities is to characterize them as the “corporate HQs” of the nonprofit world. While nonprofits do not contribute directly to the city’s tax base in the same way that a private sector business does, they add positive economic impacts in multiple ways: creating jobs, occupying privately-owned commercial office space, and increasing spending through suppliers and service providers. National associations and large philanthropic foundations are typically located in the long-standing political and economic capitals of countries. As a result, the highest concentration of national associations and foundations in the US can be found in New York and Washington, DC. The DFW Metroplex has a relatively low concentration of national associations; however, Irving is home to several HQs of national nonprofit organizations. The same factors that make the city a great place for corporate HQs (central location, large skilled workforce, proximity to DFW International Airport) also make the community a logical choice for the central offices of national associations. Irving is home to the national headquarters of several nonprofits with national reach including: the Boy Scouts of America, Mothers Against Drunk Driving (MADD), the National Society of Hispanic MBAs, Promotional Products Association International, the Electronic Security Association, the American College of Emergency Physicians, the Big 12 Conference, and the College Football Playoff organization. Finally, since few economic development programs focus on associations as a target, there would be little competition for Irving’s recruitment efforts. The fact that associations are an uncommon target makes the relocation or expansion of national associations and large philanthropic foundations into Irving an appealing and significant opportunity. A related opportunity consists of associations that are headquartered in another market (e.g., New York, DC, or another large coastal city) but are seeking to open a regional office in the central US. Irving offers a much more affordable location compared to New York or DC, allowing for more money to support the bottom line and ultimate purpose of nonprofit organizations. POTENTIAL NICHE SEGMENTS: 

Industry & trade associations



Membership organizations



Sports & athletic associations



National grantmaking foundations

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 96

CITY OF IRVING, TX

APPENDIX H: IMPLEMENTATION MATRIX IMPLEMENTATION PLAN - YEARS 1-5 0-6 MONTH INITIATIVES

1.1.2. Cultivate and expand relationships with Irving corporations that have an existing global presence. 1.3.2. Promote the current international mix of companies already in Irving. 1.4.1. Build and leverage local relationships with foreign-based firms to promote Irving as a destination for new investment and jobs. 1.4.3. Continue and expand on the international trade work being led by Irving’s International Trade Development and Assistance Center. 1.6.1. Create an ongoing dialogue to enhance the multicultural environment in Irving. 1.6.2. Continue to build stronger linkages between the city/chamber/ICVB partnership and other organizations to make connections for global business activities in trade and foreign direct investment. 1.6.3. Cultivate relationships with national/international organizations with headquarters in Irving to assist with international business connections. 2.1.4. Work with the local real estate community to establish Innovation Center that includes co-working space for entrepreneurs, startups, and freelancers in this district. 2.3.3. Promote entrepreneurship by serving as a “connector” between local entrepreneurs and the necessary resources they seek. 4.2.1. The database should be evaluated and expanded on a regular basis with a focus on companies that serve external markets or are suppliers to Irving’s primary employers. 4.3.1. Ensure that staff resources are available to meet regularly with Irving’s large employers. 4.3.7. Pursue aggressive monthly, quarterly, and annual goals for business visits in the BRE program. 4.4.2. Continue to use the City’s annual online business survey. 4.4.3. Include questions on the City survey about employers’ attitudes toward the business climate, talent availability, and workforce quality in Irving.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 128

CITY OF IRVING, TX

0-6 MONTH INITIATIVES (Cont’d.)

5.1.1. Respond to all business recruitment/expansion prospect leads within 24 hours, using a co-signed (by the Chamber and the City) letter of interest to leads. 5.1.2. Expand Irving’s database of real estate developers, commercial and industrial brokers, and site consultants. 5.1.5. Continue to conduct regional “road shows” to commercial real estate and development firms in the Metroplex. 5.2.1. Strengthen the chamber’s efforts to engage business executives by bringing together a small group of executives to discuss emerging trends. 5.2.2. Work closely with Irving’s existing employers to identify opportunities for the recruitment of suppliers or service providers. 5.3.1. Maintain an active presence at regional business recruitment efforts with the Dallas Regional Chamber of Commerce. 5.3.2. Continue the Chamber’s participation in state-wide business attraction initiatives through Team Texas, TexasOne and the Governor’s Office. 6.1.1. Ensure that processes are streamlined, transparent, well documented, and well understood. 6.1.3. Encourage firms receiving public incentives to become investors in the Partnership. 6.3.2. Review the city’s incentives relative to the target industries and the city’s performance metrics. 6.3.3. Establish minimum thresholds for both wages and capital investment. 6.3.6. Specify the levels of capital investment necessary for firms to receive incentives. 6.3.7. Maintain mandatory annual “certificates of compliance” for any businesses receiving incentives. 6.3.8. Continue using software programs to measure the economic and fiscal impacts of providing incentives. 6.5.3. Maintain local data not tracked in paid subscription services. 7.1.1. Continue to work with the ICVB to attract a new convention center hotel adjacent to the Irving Convention Center. 7.2.2. Identify and pursue opportunities for distinctive new festivals and events within the City. 7.3.1. Support the ICVB and its Board of Directors in its work to regularly convene a group of leaders from Irving’s hospitality sector to reveal opportunities to leverage the community’s visitor services industry (hotels, restaurants, and other businesses) to support the City and Chamber’s economic development programs. 7.3.2. Identify industry associations within each target industry and encourage them to consider Irving as a destination for annual events and meetings.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 129

CITY OF IRVING, TX

6-12 MONTH INITIATIVES

2.1.3. Create marking efforts that target specific types of businesses to expand and relocate into the district. 4.1.1. Hold regular meetings to provide forums for communication, relationship building, and information gathering. 4.1.3. Craft solutions, monitor the issues, and track progress towards addressing these issues. 4.3.2. Prioritize business visits by employer size, employer growth rates, target industries, and lease terminations. 4.3.3. Structure the visits to gauge the abilities and needs of local businesses in order to operate successfully and to expand in Irving. 4.3.4. Structure BRE visits to serve the purposes outlined in the plan. 4.4.1. Employ the use of Customer Relations Management (CRM) software. 5.1.4. Host a “fam” tour to showcase Irving as a viable option for new investment and business expansion. 5.4.1. Create marketing packages that tell the story of why Irving is the right location for businesses within each target industry. 5.4.2. Each marketing package should be simple, yet powerful, and be unique to each target industry. 6.2.1. Annually benchmark the level of funding and resources for the Partnership. 6.3.5. Specify target industries that are eligible to receive certain incentives. 6.3.9. Encourage businesses to hire locally as part of Irving’s incentive package. 6.4.1. Review the Neighborhood Housing Incentive Program to consider extending it beyond the initial set of neighborhoods. 6.4.2. Expand the geographic reach of the Corridor Enhancement Incentive Program to cover all prioritized sites. 6.4.3. Revise the Small Business Expansion Incentive Program to encourage the recruitment of small businesses from outside of Irving. 6.5.5. Establish the Partnership as the “go to” place for any data on Irving. 6.5.6. Publish relevant reports on Partnership organization websites.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 130

CITY OF IRVING, TX

2-3 YEAR INITIATIVES

1.1.1. Review the Chamber’s staff capacity to develop long-term business relationships in key foreign markets. 1.1.3. Evaluate financial resources to participate on international trade missions (inbound and outgoing) to develop more opportunities for trade and investment. 1.4.2. Strategically participate in international conferences and events and use these trips to make calls to specific companies based in the hosting city. 1.4.4. Expand international business for Irving-based firms. 1.5.1. Utilize resources such as The Economist magazine’s Economist Intelligence Unit (EIU) and its Country Reports. 1.5.2. Make connections with foreign-based firms within Irving’s strongest sectors. 2.1.1. Prioritize public policies and infrastructure investments that make the Heritage Crossing Innovation District more attractive to entrepreneurs and startups. . 2.2.1. Work with the major telecom companies in Irving and the surrounding region to pursue a “Global 5G Innovation Conference” in Irving. 2.2.2. Position Irving as the 5G Innovation Zone or Corridor. 2.2.3. In partnership with Verizon’s Hidden Ridge development adjacent to the DART Orange Line, launch the nation’s first 5G TOD (transitoriented development). 2.3.1. Sponsor events relevant to startups and high-growth sectors at Innovation Center. 2.3.2. Support access to high-speed internet throughout the community. 2.3.4. Encourage Irving ISD to incorporate more entrepreneurship and business development programs into academic curricula. 4.1.2. Identify cross-cutting issues that affect the sector. 4.3.5. Develop a questionnaire and routinely enter the captured information into the employer database for future reporting. 4.3.6. Engage local stakeholders as active partners in the BRE program. 4.4.4. Utilize local experts to assist businesses in areas such as funding, international trade, lean manufacturing, succession planning, and sales and marketing. 4.5.1. Encourage business leaders to interact with local partners on economic development strategy, small business assistance, talent management, and education.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 131

CITY OF IRVING, TX

2-3 YEAR INITIATIVES (cont’d.)

5.1.3. Conduct at least four recruiting trips/marketing missions per year to meet with company executives in out-of-state markets with a high concentration of firms in target industry clusters. . 6.1.2. Create a unified brand for use in all economic development marketing materials that is representative of the Partnership and its partner organizations. 6.2.2. Explore the potential for generating a higher level of private sector support for the Partnership through a capital campaign. 6.2.3. Evaluate resources needed for staff to support the high levels of economic development prospects and an expanded program. 6.3.1. Evaluate options for building the economic development incentive fund. 6.4.4. Explore the feasibility of establishing TIRZ districts for each of the city’s prioritized sites, wherever they are not already in place. 6.5.1. Advance skills for City research staff to develop a deep knowledge of various business aspects of Irving. 6.5.2. City of Irving research staff should support the Chamber’s business retention, expansion, and recruitment efforts. 6.5.4. Create and regularly maintain an online dashboard with local real estate, demographic, and economic data. 7.1.2. Support improvements to the physical connectivity and pedestrian infrastructure between the Irving Convention Center, the nearby DART Orange Line station, and surrounding developments in Las Colinas. 7.2.1. Allow temporary beer and wine sales in city parks and streets during festivals.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 132

CITY OF IRVING, TX

4-5 YEAR INITIATIVES

1.2.1. Leverage DFW International Airport’s new nonstop destinations in foreign countries to cultivate business relationships in other markets. 1.2.2. Work with DFW International Airport, regional and state economic development efforts, and Irving business executives to set up trade missions to new nonstop destinations. 1.3.1. Work with the Irving International Trade Development and Assistance Center to test the concept of an international soft landing center for foreign-based startups. 1.6.4. Utilize the EB-5 visa program as a way to attract foreign talent and investment into Irving. 2.1.2. Designate the Heritage Crossing Innovation District as the first “fiberhood” in the Metroplex. 2.4.1. Identify and target innovative high-growth firms within industries that are a natural fit for Irving. 2.5.1. Create a central database for RFPs from large Irving corporations. 2.5.2. Make the database available to all companies in Irving. 2.5.3. Establish a process to “pre-qualify” small businesses to serve as a vendor to large corporations. 3.1.1. A center should be led by a consortium of colleges and universities involving the University of Dallas, North Lake College, other Metroplex higher education institutions, and potentially other state or national institutions. 3.1.2. Centers should involve multiple Irving businesses and other Metroplex businesses, focused on industry clusters in which Irving has a competitive advantage and in which innovation is a key factor for business success. 3.1.3. The task force should consider the following potential focus areas for the centers: 5G mobile technology, Private sector cyber security, Corporate training methods & software, Smart Cities infrastructure. 4.5.2. Cultivate relationships with CEOs of local firms that are based outside of Irving to create an open channel of communication, including annual visits to out-of-market corporate headquarters. 6.3.4. Create an anchor employer program that incentivizes Irving’s existing businesses if they play a significant role in helping recruit a key supplier, service provider, or customer business into the city. 6.4.5. Create a new retail sales tax rebate for materials purchased locally for use in approved revitalization projects.

ECONOMIC DEVELOPMENT STRATEGIC PLAN

PAGE | 133