EXECUTIVE UPDATE /May 23, 2005

A strong university system and the availability of a quality workforce top “community strengths” cited by local companies. The Business Retention and Expansion Visitation program (BREV) participants have conducted over 45 visits this year to local primary employers. The visits are used to gauge the business climate in Colorado Springs and to respond to issues identified by primary employers. A total of 150 businesses will be visited in 2005. Over 250 primary employers have been visited since 2003.
A local citizen’s coalition has been formed to avert a state fiscal crisis. It will provide community education on the impact on the Pikes Peak region of constitutionally mandated state budget cuts. The first meeting will be held June 9, 8:00 a.m., at the City Administration Building (Colorado and Nevada downtown). The non-partisan Legislative Council staff indicates that if voters do not choose to provide relief from those cuts by 2006, a $363 million cut in the state budget, primarily in higher education, transportation, and health and human services must be made next year with additional cutting to come in later years. Voters will be asked to approve two ballot questions on November 1 (Referenda C and D) to enable needed funding for higher education, transportation, health care, and maintenance of public facilities. Contacts: Annie Oatman-Gardner Taxreformaog@aol.com (719) 310-9386 and Mike Kazmierski mjkazmierski@csedc.org (719) 471-8183.
State Budget Information Resources:
*A detailed Colorado legislative staff analysis of the impact of TABOR, Gallagher and Amendment 23 on the state budget.
*Documents addressing Colorado’s fiscal crisis.
The “Colorado Club for Growth”, the state affiliate of a national organization opposed to the growth of government, is opposing Referendum C, citing a desire for continued TABOR “surplus” refunds, smaller government, and continued business personal property tax reduction. The organization has not chosen to speak to the issue of the impact on the economic competitiveness of the state and the community for jobs and investment should the decay of Colorado’s transportation and university systems and public buildings accelerate, as legislative analysts have concluded would occur should the referendum fail. The University of Colorado-Colorado Springs risks the effective loss of its engineering college, an essential element of community support for technology companies that provide higher wage jobs and a large share of the tax base. No funds will be available for the foreseeable future, if the referendums fail, for the expansion of Powers Boulevard that will be needed to prevent major congestion in eastern Colorado Springs. Chairman of the Colorado Club for Growth is local entrepreneur Bill Miller. Contact him at billm@coloradoclubforgrowth.org.
The Greater Colorado Springs Economic Development Corporation board of directors has voted unanimously to support Referenda C and D. Based on feedback from local employers and independent research, efficient economic infrastructure and strong education systems (higher education and K-12) are essential to avoid economic decline in an increasingly competitive global economy. One time fixes to the state budget are about to run out, leaving the full impact of the state budget crisis, as described above, to be felt in coming years. Asian countries, which are gaining many jobs that are leaving Colorado, are rapidly increasing their investments in infrastructure and education, even as Colorado’s such investments are decreasing.
Colorado’s economic recovery continues. The first quarter of 2005 registered gains characteristic of a mature expansion in consumer spending and employment. Of the 75,700 jobs added since employment in Colorado hit a low in June 2003, over 62,000 have been added during the last 15 months. Almost 55,000 new jobs are anticipated statewide in 2005. According to a quarterly survey by Manpower, Inc., 47 percent of Colorado Springs’ surveyed employers plan to add staff in the April to June period. At its low point in the last economic downturn, Colorado was the only state to experience a decline in per capita personal income. (Source: Colorado Economic Chronicle).
Local military bases anticipate a significant increase in personnel through 2007. Annual community economic impact of over $500 million in direct and indirect salaries and wages is expected. Estimated increases at Fort Carson are 3,762 in 2005 and 4,377 by 2007. Peterson AFB and Shriever AFB are expected to grow by 605 by 2007. Local spending associated with that growth is expected to result in 4,644 new indirect jobs by 2007. Growth in local and state sales taxes is expected to exceed $20 million, total tax revenue $35.2 million. More detailed information on the economic impact of the additional military personnel will be provided in the next Executive Update. (Economic impact analysis by David Bamberger & Associates)
EDC Prospect Activity 23 primary employers or their consultants have inquired about establishing or growing operations in Colorado Springs since January 1. Seven companies have visited the community. Four companies have announced plans to locate or expand operations in Colorado Springs in 2005: Chef’s Catalog, Xanthus West, Quantum Corporation, and SI International. These announcements will result in 507 new primary jobs with an overall average annual wage of $32,367 for our community. More than 90% of the new jobs are expected to be provided to current residents.
EDC CEO Robert K. (Rocky) Scott has announced plans to return to the private sector in June. The EDC board has appointed a task force to conduct a national search for his replacement, who is expected to be on board in the early fall. A search firm specializing in economic development executive searches will be retained. Expressions of interest in the position and resumes should be sent to: joan@joanjorgenson.com.
Summer events: “Gettin’ Down Downtown” free summer concert series, sponsored by Palmer Village Development Team (Classic Companies and Nor’wood Development Group) will launch a fourth season of free weekly entertainment in the park, adjacent to Plaza of the Rockies, every Wednesday from 6:00 to 8:00 p.m., June through August.
The Peterson Airshow will return on June 4 for the first time in five years. Those interested in commercial sponsorship opportunities should contact Alayne Ravelo, alayne.ravelo@peterson.af.mil.
The 65th Annual Pikes Peak or Bust Rodeo will be held July 13-17 at the Norris-Penrose Event Center on Rio Grande. EDC is proud to point out that Amy Jo Fields, daughter of EDC Marketing Associate Tammy Fields, is the 2005 Pikes Peak or Bust Rodeo Girl of the West. You can purchase tickets at tickets west or Colorado Springs Rodeo.
Save the Date: The EDC annual golf tournament, sponsored by La Plata Investments, LLC., will be held at Pine Creek Golf Club on August 8. Invitations will be mailed to EDC investors and partners in July.