EXECUTIVE UPDATE /July 1, 2005

Intel announced in 2004 a $440 million upgrade to the local Fab 23, which is close to completion. The Colorado Springs operation is now hiring manufacturing technicians. Applicants should apply on-line at www.intel.com/jobs/resume.
Dr. Ron Sega, former Dean of the College of Engineering and Applied Science at UCCS and a former member of the EDC board of directors, will be nominated by President Bush as Air Force Undersecretary, the White House announced Thursday. Dr. Sega currently serves as Defense Department Director of Defense Research and Engineering. He was an astronaut on shuttle missions before becoming Dean at UCCS. (Source: The Gazette.)
Mayor Lionel Rivera came out in strong support of Referenda C and D at the ground breaking ceremony for COSMIX on Thursday. Shortly after Governor Owens spoke in support Referenda C and D, the Mayor expressed his endorsement of the initiatives, due in large part to the specifically “earmarked” transportation projects that will be funded by the referenda, such as the Cimarron/I-25 Interchange and the State Highway 16/I-25 Interchange at Fort Carson’s Gate 20. “That interchange is critically important to help accommodate the projected growth at Fort Carson of over 30,000 soldiers and family members,” he said. For more information or to join the coalition, contact Annie Oatman-Gardner at Taxreformaog@aol.com or Mike Kazmierski at mjkazmierski@csedc.org.
Fort Carson is projected to increase its troop strength by between 12,000 and 15,000 troops over the next few years based on a recent announcement by the Secretary of the Army. The economic impact of those troops is 20,000 to 24,000 new jobs in the community and between $750 million and $1 billion dollars in total earnings per year. The increased troop strength is significant when compared to the annual population increase in El Paso County of about 7,000 over the past few years, with only 2,000 of that number as net in-migration. A community task force has been established to help Fort Carson and the community manage this transition. For more information contact Tony Koren at tony.koren@northstonegroup.com or Mike Kazmierski at mjkazmierski@csedc.org.
Colorado Springs home prices have increased only 5.62% in the last year, while much of the country is experiencing double-digit increases in housing costs. According to the Office of Federal Housing Enterprise Oversight, U.S. housing prices continue to rise rapidly. To view the full report go to http://www.ofheo.gov.
Decline in IT jobs statewide. A recent study from Innovation Economics, prepared for the Colorado Workforce Development Council, indicates that Colorado is slipping in its role as a center for innovation in information technology. From 2001-April 2005, there was a 9% job decline in the information technology sector in Colorado, placing Colorado 47th overall in IT job growth. The study suggests that public/private partnerships, retention of workforce and retraining opportunities could stem the decline in the state. For more information on the study, please contact Philip McCready at philm@innovationeconomics.com.
Colorado’s first-quarter employment rose 2.6% year-over-year, outstripping national growth of 1.7%, the Federal Deposit Insurance Corp. said in a state profile this month. State employment continues to broaden across most sectors, particularly in construction and energy–related industries. Several factors may cause Colorado employment growth to level off during the rest of 2005, including slower U.S. growth; a continued drag from telecommunications, computer and electronics manufacturing industries; high energy prices and the potential for higher short-term interest rates. (Source: Denver Business Journal.)
Colorado, Arizona and Nevada are projected to see job growth of 3 to 4% in 2006, due mainly to strength in defense, aerospace, technology, tourism and gaming. States in the South and West will see more gains in economic growth than the remainder of the country. (Source: The Kiplinger Letter.)
The Pikes Peak or Bust Rodeo Parade will be held Wednesday, July 13. A pancake breakfast will be served at 7:00 a.m. in Acacia Park and the Parade will begin at 10:00 a.m. The Rodeo, in its 65th year, will run July 13-17 at the Norris-Penrose Event Center Arena. Proceeds will go to programs and services benefiting local military personnel and their families. www.coloradospringsrodeo.com.
The 2005 Parade of Homes, presented by the Housing and Building Association of Colorado Springs, will be held August 5 through 21. Call (719) 592-1800 for more information.
For questions or comments on the Executive Update please contact Julie Boswell at jboswell@csedc.org.