Comprehensive Economic Development Strategy (CEDS) For Osage and Tulsa Counties in the INCOG Region
INCOG is submitting this Comprehensive Economic Development Strategy (CEDS) as an initial effort to establish a regional economic development framework for two counties in the INCOG area, Osage and Tulsa. The CEDS serves as a current description of the Tulsa area economic and workforce development status, so as to appropriately identify opportunities to use local, state and federal funds to meet current and emerging regional economic growth needs.
In recent years several initiatives and strategic activities have led to the development of an EDA funded “public-private partnership” between INCOG and the Metro Tulsa Chamber. The background and initial efforts to generate this strategic planning document is described below.
DEVELOPMENT OF A JOINT PARTNERSHIP
Under the sponsorship and supervision of local elected officials, the professional staff of INCOG provided organization, research, and support to fully nurture the Vision 2025 planning process. Their efforts were complemented by the professional economic and community development staff of the Metro Tulsa Chamber. It is a partnership of these two leading organizations that will drive and document future regional economic development goals and implementation. INCOG has traditionally led “product development” and the Metro Chamber has traditionally led “sales and marketing”. Both organizations, along with City, County and Tribal economic development leaders and professionals, manage the programs, projects and prospects that propel the region’s economic growth. Both INCOG and the Metro Tulsa Chamber have a long history of committed, dynamic and influential leadership. Each organization is well respected and trusted by area partners. Combining these forces ensures future success through the marriage of public and private interests and brings a system of checks and balances for future actions.
OVERVIEW OF RECENT ECONOMIC DEVELOPMENT INITIATIVES
INITIAL VISION 2025 EFFORT
In 2003, public and private sector community leaders came together to support and pass an impressive and nationally recognized $850 million investment in public projects known as Vision 2025. Public involvement and participation numbered in the thousands and parts of the Vision’s mission statement shows the linkage between that successful undertaking and the economic development strategies contained within the current INCOG Comprehensive Economic Development Strategy, or CEDS.
· “In partnership with all of the communities in the region, we will present multiple economic activity centers anchored by a strong downtown Tulsa.”
· “Our region will exhibit a spirit of cooperation and collaboration among governmental entities and with the private sector that is the envy of the nation.”
· We will have a healthy business environment that encourages the development of quality jobs.”
A
Vision 2025 website has been established as a portal for information regarding project status updates and continued involvement in what has become known as the “Vision Process” A more detailed history and current listing of oversight committees involved in different areas is also available on this site.
THE 2003 REGIONAL LEADERSHIP SUMMIT
Building on the energies and commitment demonstrated in the Vision 2025 effort, the Tulsa Metro Chamber sponsored a Regional Economic Development Leadership Summit in December 2003. That summit let to the disciplined and effective work of five regional task forces involving 150 leaders from the area. These leaders were formed into task forces which focused on the following issues, examined the current processes and dynamics involved in each issue, and articulated specific and detailed recommendations.
· Innovation Economy
· Lifestyle
· Assets, Incentives & Initiatives
· Marketing
· Industry Cluster Targets
THE 2004 ECONOMIC DEVELOPMENT SUMMIT
The work and recommendations of the task forces was reinforced and was brought more closely into a common perspective during the December 2004 Regional Economic Development Summit. This Summit was widely attended by community leaders from the region, including both Tulsa and Osage County. It is the substance of all that work, fashioned into several white paper presentations, digested and summarized that has led to the development of this CEDS document and also serves as the basis for the development of the “Tulsa’s Future” campaign centered within the Metro Tulsa Chamber.
CURRENT STRATEGIC INITIATIVES
City of Tulsa Economic Development Strategic Plan -
The City of Tulsa Economic Development Strategic Plan (adopted by the Tulsa City Council on February 23, 2006) is the result of a six-month study and planning process, which included the involvement of many city and regional stakeholders, and an extensive economic overview and analysis of the City.In July of 2005, the City of Tulsa retained the services of the International Economic Development Council (IEDC) to facilitate the economic development strategic planning effort. IEDC worked with Development Strategies, Inc. (DSI), a St. Louis- based consulting firm, to complete the study. Initially, economic programs, resources and conditions in the City were identified and reviewed. Several meetings were held with city and county government officials, key economic development and businesses leaders, and other community stakeholders. A “SWOT” Analysis was completed along with an economic assessment, cluster analysis and a review of Tulsa economic development organizations and programs, Tulsa retail patterns and comparisons, and case studies of three comparable cities; Des Moines, Kansas City, and Omaha.
In mid-October a second round of meetings was held to present the economic analysis reports to the City of Tulsa and gain feedback. Comments and continued research were integrated to develop the draft Economic Development Strategic Plan. Members of the Tulsa City Council reviewed and commented on the draft plan in January 2006.
Funders Roundtable/Step Up Tulsa! - is a citizen-driven initiative to assess problem areas and point out bold ideas for the Tulsa Area. Initiated by the Funders Roundtable, a group of the region's private, public, and corporate foundations, and staffed by the Tulsa Community Foundation, Step Up Tulsa! is a process which involves:
This planning effort is bringing together corporations, foundations/non-profits, citizens and government sectors in the Tulsa area to collectively assess, identify, prioritize, fund and resolve Tulsa's critical issues. The anticipated completion date for this process is late summer of 2006.
· In a recent report entitled, “The Oklahoma Outlook -2006 Economic Outlook for the Tulsa Metropolitan Area”, Ed Price, an Associate Professor of Economics in the Spears School of Business at OSU-Stillwater offered the following summary comments:
- The Tulsa metro area economy rebounded in early 2005 and began to enjoy “recovery-like” growth rates in most economic measures.
- The metro area is expected to add 8,000 wage and salary jobs (1.7% gain) in 2006, outpacing both the state (1.6%) and nation (1.5%).
- Strong income gains are expected next year, with personal income forecasted to increase 6.1% versus 5.7% for the state.
- The Tulsa area continues to lag 9-12 months behind the state and nation, but should experience peak growth rates in 2006 as the state and nation slow slightly.
The report also indicated that the Tulsa metropolitan area economy is poised to experience an exceptionally good year in 2006. Income, output, and employment will all increase at rates that exceed the state average but will be slightly below the results for the national economy. Tulsa stands to regain much of what it lost during the last recession and will move forward to set new peaks in most measures of metropolitan economic activity.
· In the case of Tulsa, the growth of industries other than telecommunications such as healthcare, aerospace and business and professional services has led to the increase in industry diversity. Economic diversity in the Tulsa MSA will continue to grow through the development of these three clusters and others that show promise for growth locally and nationally.
· The average level of total employment in the Tulsa MSA in the second quarter 2005 was 401,967, up 2,878 jobs from second quarter 2004, reflecting a 0.7 percent growth rate. Notable is the year-over-year decline in “Manufacturing” of 860 jobs or 1.8 percent. Hiring in manufacturing has not matched strong gains in sales and shipments of Tulsa manufactured goods over the last year.
· With a commitment of $535 million in public money, the Vision 2025 initiative has been identified as the largest set of public redevelopment projects in the history of Tulsa County. However, these projects will not, in themselves, fully address what citizens hope the community will become. The Vision 2025 Projects were selected to provide human and physical infrastructure as incentive for private enterprise to leverage the public investment to accomplish economic growth throughout Tulsa County.
· Two young professional organizations have been formed in the past two years. They are YP Tulsa and TYPros. Both groups together total over 2,000 dedicated young professionals who have chosen to live in Tulsa and who are activist oriented and vitally interested in the growth and development of the Tulsa region.
AREA DEMOGRAPHICS
The CEDS project area encompasses Tulsa and Osage Counties in the State of Oklahoma. The area reflects urban, suburban and rural characteristics and contains several cities/towns of varying size and economic/social diversity. The two counties are at the heart of a larger economic region represented by the designated Tulsa Metropolitan Statistical Area (historically five counties and most recently designated in the 2000 Census as seven counties). Beyond the MSA, Tulsa has a labor draw that comes primarily from 10 counties that contain a population of over one million residents.
The area is also home to three major American Indian Tribes including The Osage, The Cherokee and The Creek Nations.
With an area of 570.3 square miles, Tulsa County is largely urbanized and has 10 cities/towns within its borders: Bixby, Broken Arrow, Collinsville, Glenpool, Jenks, Owasso, Sand Springs, Skiatook, Sperry and Tulsa.
Adjacent Osage County has a huge, basically rural, geographic area of 2,251 square miles with a relatively small population centered in smaller cities and towns represented by Avant, Barnsdall, Burbank, Fairfax, Foraker, Grainola, Hominy, Pawhuska, Shidler and Wynona. The number of persons per square mile is 19.7. The City of Sand Springs, the Town of Skiatook and the City of Tulsa all include land area in both Tulsa and Osage Counties. Osage County is home to the historic Osage Indian Reservation. The setting is high plains, rolling hills, rich farm and cattle lands and the Nations largest preserve of Tall Grass Prairie.
· The Tulsa area provides a quality workforce and a significant number of educational and workforce training opportunities that are identified on the Workforce Tulsa website. There is an increased recognition that the Tulsa area is in a global competition for talent and the younger generation is Tulsa's future. This reflects that today's economy is based on knowledge -- in jobs rooted in science, engineering, the arts and high-tech.
· To compete, the Tulsa area must prioritize resources in human/intellectual capital versus constantly funding physical capital. People, knowledge and communication are the new basis for a competitive advantage.
· Interestingly, knowledge workers first choose where they want to live and then choose a job that allows them to live there. So, the area must offer a quality of life like no other. It needs great schools, great higher education and ideally, vibrant research and development. We need to be an idea “factory” as well as provide the support and capital to commercialize research and technology ideas in a timely way. It needs creative minds to inspire innovation. It must be a community that offers healthy living, physically and intellectually.
ISSUES AND OPPORTUNITIES
The following issues and opportunities have been identified through the CEDS planning process:
· There is a significant regional commitment to economic development and professional ED staff is imbedded within several key organizations, including INCOG, Metro Tulsa Chamber, Workforce Investment Board, Osage Tourism Board, Tulsa Airport Authority, etc. Limited communication and awareness of current activities and initiatives underway within each organization remains an issue.
· In the Tulsa area there is a lack of startup capital and support for entrepreneurs, and a lack of local incentives to close deals with large companies.
· The overall decline in manufacturing, within the Tulsa area and nationwide, highlights the need to provide innovative and quality workforce training opportunities.
· The quality of life in the Tulsa area provides several strengths such as a low cost of living; affordable housing; a good transportation system; access to inter-coastal shipping lanes through the Tulsa Port of Catoosa and excellent recreational and trails opportunities such as the Arkansas River corridor and numerous area lakes.
· The presence of several higher education institutions capable of producing world-class research, innovation and highly skilled graduates presents dynamic research opportunities for the region. These primary institutions are OSU-Tulsa, OU Medical School, University of Tulsa and ORU.
· Significant long-term growth areas, particularly in the aviation, healthcare and medical technology clusters have been identified.
CEDS KEY GOALS AND OBJECTIVES
Quality Jobs
Goal: Assist in the creation of 10,000 primary jobs and 16,000 secondary jobs over a five year period. Primary jobs will have a $45,500 average wage.
Objective 1: Retain and grow existing businesses.
Objective 2: Recruit new businesses to the Tulsa area.
Objective 3: Research
Objective 4: Promote Collaborative Public and Private Relationships
Industry Target Clusters
Goal: Create a Proactive growth and development strategy in each of the Industry Target Clusters.
Objective 1: Development of cluster specific economic development strategies:
· Aerospace, Transportation and Logistics
· Financial and Business Services
· Advanced Manufacturing and Technical Services
· Information Technology and Telecommunications
· Healthcare and Molecular Science
· Education and Knowledge Creation
· Hospitality, Tourism and Entertainment
Innovation Economy
Goal: Create a regional culture of innovation by building and promoting needed change and/ or improvements in education, research and development and entrepreneurship
Objective 1: Educate the regional citizenry regarding the vital importance of innovation to our success in future economic development.
Objective 2: Support Science and Technology initiatives at the State and Local level
Objective 3: Provide opportunities for a variety of land use and resources to attract Corporate Research & Development Tenants; Companies Commercializing Research; Federal Labs; and University Research Components.
Objective 4: Support policy and resource development at the Federal, State and Local levels
Workforce Development and Talent Attraction
Goal: Reverse the trend of population losses in the young professional age groups
Objective 1: Implement the key recommendations of the Next Generation Consulting Final Report
Objective 2: Implement targeted recommendations of the Tulsa’s Future Lifestyles Task Force
Goal: Create a sense of urgency about the importance of workforce development, build initiatives and engage stakeholders
Objective 1: Support and promote the Strategic Framework contained in the Workforce Tulsa 2006-2007 Strategic Plan by engaging partners in workforce solutions; facilitating local and regional collaboration; aligning service delivery and the development of achievement measures.
Goal: Build a stronger education and training pipeline that anticipates future workforce requirements that meets the demands of existing and emerging industries
Objective 1: Positively impact high job vacancy rates in high-demand occupations
Objective 2: Provide seamless, relevant and timely educational programs, through the Tulsa Technology Center and the Tulsa Community College, that support the current and future demands of existing and emerging industries
Goal: Create a career preparation system that builds the skills needed for quality jobs.
Objective 3: Prepare Middle and High School students for careers in science, technology and health
Regional Vitality:
Goal: Move toward a more formal regional governance structure that encompasses increased planning coordination, shared services and joint public/private involvement.
Objective 1: Support and facilitate Comprehensive Planning efforts in Osage and Tulsa Counties
Objective 2: Strengthen Regional Public Safety
Objective 3: Improve health care and health access to residents of the region
Objective 4: Support initiatives to enhance quality of life through development in the Arkansas River Corridor
Objective 5: Identify and promote Regional Transportation Initiatives
Regional Infrastructure Investments
Goal: Support regional infrastructure investments that enhance economic growth and development opportunities
Objective 1: Identify and promote regional physical infrastructure project investments
Issues Identification and Funding
Goal: Align Regional Leadership and Resources
Objective 1: Communication and Coordination
CONCLUSION
As mentioned earlier in this summary, the INCOG Region is still engaged in several strategic planning initiatives that will yield new and important insights into the proposed growth and development of the Tulsa Region. These initiatives include the Tulsa’s Future initiative of the Tulsa Metro Chamber; the City of Tulsa Economic Development Strategic Plan; the Step Up Tulsa! initiative of the Funders Roundtable and the 2030 Osage County Comprehensive Plan. In the time between the adoption of this CEDS and the development of a future update the challenge remains to review and include the economic development related initiatives that are developed as part of these efforts. These strategic planning activities will have a significant bearing on future CEDS Action Plans.
It is the intent of the INCOG Board to make maximum use of existing local resources to address barriers to continued growth. It is further our intent to seek additional resources, including federal support for economic development activity, as conditions warrant.
Successful implementation of the goals, objectives, and strategies outlined in the Comprehensive Economic Development Strategy will lead to a more diverse and prosperous economic future and enhanced quality of life, and a bright future for our citizens.
INCOG is a voluntary association of local governments, organized under the Interlocal Cooperation Act (Title 74-Oklahoma Statutes), serving Creek, Osage, Tulsa, Rogers and Wagoner counties in northeast Oklahoma. INCOG has been organized as a Council of Governments (COG) for over 30 years. Today, INCOG is one of the largest and most comprehensive regional providers of services to the public and private sectors in the nation.
As INCOG understands that the district's economic development process involves all concerned parties in the district, the INCOG Board of Directors is principally composed of public officials and includes minorities, business people, and representatives of community-based organizations from the region. A membership list is available in the Appendix. Upon receipt of the initial CEDS planning grant from EDA the INCOG Board of Directors elected to serve as the CEDS Strategy Committee during the development of the CEDS document. The INCOG Board of Directors adopted the CEDS report by Resolution in March of 2006 and authorized it’s submittal to the EDA Regional Office in Austin, Texas.
C. New CEDS Committee
In response to the new 35% private sector participation required by the Interim Final Rule issued for EDA, INCOG will create a separate CEDS Committee which will report to the INCOG Board of Directors. This new CEDS Committee will direct the performance of the INCOG staff, evaluate the implementation of the initial CEDS document and will oversee any modifications or updates that occur in the future. Membership of the new CEDS Committee shall be composed of approximately fifteen (15) persons who are represented by:
1. Principal economic interests of the district.
(Business, Non-Profit, Finance, Utilities, Workforce, Agriculture and Education) 7 persons
2. Minority Groups.
(20%) at least 3 persons
3. Local Government.
(a simple majority) at least 8 persons
4. Private Citizens.
(35%) at least 6 persons
5. INCOG Board of Directors.
(40%) at least 8 persons
6. Tulsa County geographic area.
(80%) 12 persons
7. Osage County geographic area
(20%) 3 persons
The INCOG Board of Directors will appoint members selected for the CEDS Committee. The CEDS Committee will be given the responsibility for developing and approving economic development plans and policies including changes and amendments to the CEDS, and prospective Public Works projects. Upon approval by the CEDS Committee, plans and policies will be forwarded to sponsoring local governments for information and review and to the INCOG Board of Directors for endorsement of such plans and policies.
D. Historical Assessment
INCOG has been involved in regional economic development activities since the inception of the organization in 1967 but has not sought recognition as an Economic Development District by EDA. In the fall of 2004, after obtaining a planning grant from EDA INCOG formed a partnership with the Tulsa Metro Chamber to complete an initial CEDS for Osage and Tulsa Counties with the intent of seeking a formal designation as an Economic Development District. The request for this designation is expected to occur in April of 2006.
In addition to local government efforts, INCOG has initiated, participated in and/or promoted a number of programs to further economic development within the Tulsa area. Economic Development measures include the following:
1. Initial Vision 2025 Effort
In 2003, public and private sector community leaders came together to support and pass an impressive and nationally recognized $850 million investment in public projects known as Vision 2025. Public involvement and participation numbered in the thousands and parts of the Vision’s mission statement shows the linkage between that successful undertaking and the economic development strategies contained within the current INCOG Comprehensive Economic Development Strategy, or CEDS.
· “In partnership with all of the communities in the region, we will present multiple economic activity centers anchored by a strong downtown Tulsa.”
· “Our region will exhibit a spirit of cooperation and collaboration among governmental entities and with the private sector that is the envy of the nation.”
· We will have a healthy business environment that encourages the development of quality jobs.”
A Vision 2025 website has been established as a portal for information regarding project status updates and continued involvement in what has become known as the “Vision Process” The website contains a more detailed history and a current listing of oversight committees involved in different areas is also available on this site.
2. The 2003 Regional Leadership Summit
Building on the energies and commitment demonstrated in the Vision 2025 effort, the Tulsa Metro Chamber sponsored a Regional Economic Development Leadership Summit in December 2003. That summit led to the disciplined and effective work of five regional task forces involving 150 leaders from the area. These leaders were formed into task forces which focused on the following issues, examined the current processes and dynamics involved in each issue, and articulated specific and detailed recommendations.
· Innovation Economy
· Lifestyle
· Assets, Incentives & Initiatives
· Marketing
· Industry Cluster Target
3. The 2004 Economic Development Summit
The work and recommendations of the task forces was reinforced and was brought more closely into a common perspective during the December 2004 Regional Economic Development Summit. This Summit was widely attended by community leaders from the region, including both Tulsa and Osage County. During the summer of 2004 Next Generation Consulting, Inc. was brought in to work with Tulsa area Gen X’ers (Young Talent) as part of the Lifestyles Task Force. A Next Generation Consulting Final Report, designed to assist Tulsa in attracting and keeping young professionals, was presented to the Summit. It is the substance of all that work, fashioned into several white paper presentations, digested and summarized that has led to the development of this CEDS document and also serves as the basis for the development of the “Tulsa’s Future” campaign centered within the Metro Tulsa Chamber.
4. Tulsa’s Future
Tulsa’s Future is a five year economic development initiative of the Tulsa Metro Chamber which responds to the mission statement of Vision 2025 and the work and recommendations of the five task forces arising from the Regional Economic Development Leadership Summit of 2003. The goal is to bring 10,000 high-paying jobs to the area and an additional 16,000 well-paid secondary jobs. It represents a pro-active approach to economic development and focuses growing innovation assets and targeted industry clusters in the Tulsa Area. The projected cost of this initiative is $9,000,000 and will be invested primarily by the private sector. It will strengthen the area’s ability to attract the quality jobs and talent it wants and needs and will induce a growing sense of regional cooperation.
5. City of Tulsa Economic Development Strategic Plan
The City of Tulsa Economic Development Strategic Plan (adopted by the Tulsa City Council on February 23, 2006) is the result of a six-month study and planning process, which included the involvement of many city and regional stakeholders, and an extensive economic overview and analysis of the City.
In July of 2005, the City of Tulsa retained the services of the International `Economic Development Council (IEDC) to facilitate the economic development strategic planning effort. IEDC worked with Development Strategies, Inc. (DSI), a St. Louis- based consulting firm, to complete the study. Initially, economic programs, resources and conditions in the City were identified and reviewed. Several meetings were held with city and county government officials, key economic development and businesses leaders, and other community stakeholders. A “SWOT” Analysis was completed along with an economic assessment, cluster analysis and a review of Tulsa economic development organizations and programs, Tulsa retail patterns and comparisons, and case studies of three comparable cities; Des Moines, Kansas City, and Omaha.
In mid-October a second round of meetings was held to present the economic analysis reports to the City of Tulsa and gain feedback. Comments and continued research were integrated to develop the draft Economic Development Strategic Plan. Members of the Tulsa City Council reviewed and commented on the draft plan in January 2006.
6. Funders Roundtable/Step Up Tulsa!
This strategic planning process is a citizen-driven initiative to assess problem areas and point out bold ideas for the Tulsa Area. Initiated by the Funders Roundtable, a group of the region's private, public, and corporate foundations, and staffed by the Tulsa Community Foundation, Step Up Tulsa! is a process which involves:
· Conducting a community needs assessment to identify community assets and social service/infrastructure gaps
· Prioritizing issues based on available resources and best return on investment, then developing strategies to resolve the issues
This planning effort is bringing together corporations, foundations/non-profits, citizens and government sectors in the Tulsa area to collectively assess, identify, prioritize, fund and resolve Tulsa's critical issues. The anticipated completion date for this process is late summer of 2006.
The participating CEDS Member Governments represented in this CEDS are Osage and Tulsa Counties in the Tulsa MSA. The Economic Target Area Maps included as part of this report highlight those areas in Osage and Tulsa Counties that qualify under economic distress criteria as identified by the EDA Interim Final Rule.
Each county has reviewed and approved the initial CEDS Report. Letters of concurrence from Osage County and Tulsa County are located at the end of the Appendix.
