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Quality Jobs in a Strong Economy Desirable Place to Live Well and Work Smart Voice for Commerce and Civic Collaboration
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May 2,
2011 This is MONDAYMEMO, the weekly report from the RCGA President to Board
members and other key investors. MONDAYMEMO is published by the St. Louis
Regional Chamber and Growth Association, One Metropolitan Square, Suite
1300, St. Louis, MO 63102. To unsubscribe or change your address
or method of delivery, reply to mondaymemo@stlrcga.org. Following a Senate session lasting until nearly 1 a.m. last Thursday morning, Sen. Eric Schmitt (R-Glendale), lead sponsor of the Aerotropolis measure, broke the good news of the full Senate's initial approval to the RCGA's Board of Directors meeting some seven hours later at 7:30 a.m.
Sen. Schmitt, along with Emerson President & COO Ed Monser, Mayor Francis Slay, Chief of Staff Jeff Rainford, Lambert-St. Louis International Airport Director Rhonda Hamm-Niebruegge, David Barklage of the Barklage Co., RCGA Executive Vice President for Economic Development Steve Johnson, and I participated in a panel discussion at the Board meeting. The St. Louis region and the State of Missouri have been working on the St. Louis Big Idea China project for the past 3 years. The two aspects of the Big Idea are Air Cargo and Business-to-Business. In the case of Aerotropolis, these two issues join together. The Business-to-Business and economic development sides of the Big Idea embodied in this measure create the building of a sustainable logistics cluster that would grow demand for the cargo hub and build the entire opportunity.
To that end, earlier this year, St. Louis Mayor Francis Slay, St. Louis County Executive Charlie Dooley, and the Midwest China Hub Commission asked the RCGA to commission an independent economic evaluation focused on quantifying the incentive for “qualified gateway facilities” that is the heart of this legislation. The goal was to determine what such incentives, if fully subscribed, would “buy” for the State of Missouri with regard to construction jobs, permanent jobs and overall economic growth. The Aerotropolis measure would provide up to $300 million over 15 years in incentives for companies to construct “qualifying gateway facilities.” The economic impact analysis, conducted by Biggins Lacy and Shapiro (BLS) of Princeton, N.J. and Institute St. Onge, the York, PA-based international logistics advisory firm -- experts that are widely considered to be among the most knowledgeable in the field of logistics and economic development incentives -- have completed this aspect of their study and are now publishing it. The results are extremely impressive. The study projects that the $300 million in incentives, if fully subscribed, would generate more than 23,000 construction jobs over the 8-year construction period, at least 13,800 new permanent full time jobs, and a minimum of nearly $22 billion in net new economic output for the region and State over the term of the incentive. Putting these numbers in context, this $22 billion Total Economic Output number compares to the annual budget of $23 billion for the entire State of Missouri. Annualized, the estimated Aerotropolis yearly economic output number of $2.4 billion compares to a $2.2 billion annual economic output of Scott Air Force Base, as vital an economic driver as that institution is. Over the 20-year period -- recognizing that the incentive would be stimulating growth beyond the term of the actual legislation - the impact grows to $33.8 billion. Construction Jobs
Permanent Full Time Jobs
Source: “Estimate of Potential Economic Impact Associated with Aerotropolis Legislation and an International Freight Hub at Lambert-St. Louis International Airport,” April 2011 Below is a listing of the region’s largest employers:
American City: St. Louis Architecture Three Centuries of Classic Design with text by Sharoff and 140 color photographs by Zbaren, is stunning. The book is the first large-format book on the city’s architecture since the 1920’s, and traces the evolution of St. Louis’ built environment. Quoting from the book, “From its early days as a frontier fur-trading post in the 1700s, St. Louis grew into ‘Paris on the Mississippi,’ a bustling city of elegant hotels, offices and government buildings that was one of the marvels of 19th-century America. More than just about any city in America, St. Louis embraced the imposing forms and lush ornamentation of the Beaux Arts tradition. Indeed, one can make the argument that in the United States, only Washington, D.C. has a more impressive collection of Classically inspired structures.”
This book is the second in their American City series. The first was Detroit. Upcoming volumes will look at Chicago and Savannah. Sharoff penned an outstanding article back in February about St. Louis’ unique information technology (IT) infrastructure. His article, “Data Centers Offer Hope for St. Louis Office Market,” was published on February 8th. The RCGA had pitched Sharoff several months ago through our national media relations team at Fleishman-Hillard, inviting him to consider doing this story following the region’s successful recruitment of Unisys’ new Center of Excellence and the expansion of such companies here as Contegix and Xiolink. This “national media pitching” is part of the RCGA’s ongoing national media and branding effort to support the region’s economic development initiatives. This was the 3rd article Sharoff has written in the New York Times about St. Louis in the last several years. His first, in 2006, was about the revitalization of downtown. When he came here to research that piece, he was awed by the architecture he found throughout the community and decided, with Zbaren, to create a book about it. A several month long photo exhibition, by Sharoff and Zbaren will open on June 10th at the newly renovated Ridgeway Center at the Missouri Botanical Garden, displaying 70 large photos from the St. Louis book. Following the exhibit at the Garden, the show will tour both Washington, D.C. and Chicago. Sharoff's book is available at left Bank Books. The gains in March were focused on a few sectors. Retailers in the region added 2,300 workers compared with March 2010. The leisure and hospitality sector - such as restaurants, hotels and casinos - added 4,400 jobs from last year. Graduate! Philadelphia is one of the nation’s first successful programs bringing business, higher education, government, private foundations, and community groups together to help adults finish college. Started in 1995, G!P operates at the programmatic and policy levels to promote college completion in Greater Philadelphia. Among its key features is a public messaging campaign that encourages adults who started college but dropped out before finishing getting back into school and completing their degree.
According to the 2009 American Community Survey, 451,000 adults aged 25 and older in the St. Louis metro area fall into this category. With 32% of our adult population of working age having bachelor's degrees or higher, St. Louis is slightly better educated than the U.S. as a whole, but ranks below several competitor metros, including Research Triangle, Minneapolis, Denver, Atlanta, and Kansas City. Hadass applauded research on this topic that the RCGA recently published under the title “Making the Case for a Campaign to Increase College Completion Rates in Greater St. Louis.” She also affirmed the importance of the Talent Council’s expressed vision for St. Louis “to be a growing community known for our diverse talent; a community with college graduates and other skilled individuals available to meet current and future employment needs; and a community with vibrant collaboration among employers, educators, civic groups, government agencies and individuals so that employment opportunities are created and realized.” One of the four action priorities supporting this vision is to “design and implement an action plan to increase the percentage of the region’s adult population with college degrees.” Last Friday’s meeting was chaired by Talent Council Chair Doug Koch, Chief Talent Officer for Brown Shoe, and hosted by Lee Kaplan, Chief Administrative Officer for Enterprise Holdings, Inc. It was attended by Talent Council members and representatives of Ameren, Brown Shoe, Sigma Aldrich, the St. Louis Post-Dispatch, Enterprise Holdings, Wells Fargo Advisors, Great Circle, Inc., AdamsGabbert, and the RCGA. This past Thursday afternoon, nearly 60 representatives of business, higher education, government, foundations, and community groups came together in the RCGA’s Regional Collaboration Center to hear the Graduate! Philadelphia story and engage in dialogue with Hadass about the “nuts and bolts” of successful adult college completion efforts. Detained en route by a series of air travel problems, Hadass participated in this gathering by speaker phone from a corner of the Pittsburgh airport, thereby demonstrating very effectively three of the key attributes of an effective collaboration: flexibility, resourcefulness, and persistence.
Initially recruited to the RCGA back in 2002 from Bi-State Development Agency (Metro), where she was deputy executive director, Susan brought to the job more than 25 years of diverse infrastructure and public policy experience and a strong working relationship with the transportation and public policy leaders throughout the St. Louis region. During her tenure at the RCGA, Susan’s efforts helped contribute to the success of the Mayor’s Business Task Force on Lambert Airport, supported strong business involvement in the long process of getting the new Mississippi River Bridge off the ground, fostered the active participation of businesses in getting behind the I-64 reconstruction project, and encouraged public and private sector collaboration to begin to address freight issues in the region. Susan’s work has led to better understanding and more effective involvement on the part of the business community in “all things infrastructure.” She plans to be very busy this summer traveling with her husband, Gerry, to visit children and grandchildren in Vermont and Yorkshire, England, and vacationing in the Rocky Mountains. Susan also currently serves as Chair of the St. Louis City Planning Commission and Chair of the City’s Downtown Economic Stimulus Authority. We wish Susan well and thank her for her many civic contributions to the bi-state region.
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