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HomeMy WebLinkAbout2003 Strategic Marketing PlanCITY OF SEBASTIAN ECONOMIC DEVELOPMENT STRATEGIC MARKETING COMMUNICATIONS PLAN SEPTEMBER 2003 Table of Contents I. Introduction II. Mission Statement III. Background IV. Objectives and Goals V. Product Definition VI. Product Distribution VII. Customer Identification VIII. Competitive Analysis IX. Strengths X. Weaknesses XI. Threats XII. Opportunities XIII. Unique Selling Proposition XIV. Strategic and Tactical Plan Development XV. Media Plan XVI. Research XVII. Public Relations Plan XVIII. Web Strategy XIX. Creative Approach XX. Appendix I. Introduction An in-depth strategy session with senior officials of the City of Sebastian and representatives from the community was held on Thursday, July 3, 2003, City Hall, Sebastian, Florida. Attending the session was Terrance Moore, Greg Gardner, Jason Milewski and Tracy Hass from the City of Sebastian, Beth Mitchell from the Sebastian River Area Chamber of Commerce, Ed Junker area businessperson, and Chuck Wheeler, Emily Clemente, Julie Kalt, and Tim Bach from Patterson/Bach Communications. The purpose of the strategy session was to begin the development of a marketing communications plan to market the approximately 160 acres of land located on the City of Sebastian's Sebastian Municipal Airport. See Appendix for strategy session outline. The marketing communications plan includes an in-depth analysis of the product, specific marketing communications strategies, and a tactical plan to convert the strategies into specific actionable items targeted at achieving the stated goals, including approximate budgets. H. Mission Statement City of Sebastian (City) elected officials, volunteer board and advisory committee members, and all employees are committed to making Sebastian the most desirable city in the state of Florida to live —for businesses to flourish and visitors to enjoy. Sebastian will become known as a city that superbly manages and develops its human, natural and financial resources, such that it is consistently able to provide and improve upon its reputation as a highly attractive and safe community with enviable business and recreational opportunities. We will achieve this mission by implementing the following strategies that build on excellent work already begun: Ensure that all employees, volunteers and advisory board members fully understand and will work toward the achievement of the mission. Determine, through citizen committees, workshops and surveys, the most important stated and unstated needs and expectations of the majority of our residents. Concurrently, seek to assess both internal and external attitudes toward all major City sponsored programs designed to meet those needs and expectations. Continually assess the City's recreational and cultural activities and work to provide an optimal mix that satisfies our residents. Develop a Growth Management plan that recognizes the City's current and future growth needs. Continue to improve the budgeting process so that all human, natural and financial resources are allocated and all capital improvements are developed and implemented consistent with this mission. 2 II. Mission Statement (cont.) Design and implement an employee recruitment, training and development plan that finds, trains, develops and retains people with the skills and talents needed to achieve the City's mission. Develop and promulgate an Economic Development Policy that will entice commercial enterprises to Sebastian, thereby strengthening and expanding the City's financial resources. Continue to improve methods of communicating information to residents. Each Department of the City of Sebastian will develop and accept responsibility for specific action steps designed to achieve its portion of the mission. The City will review its Mission Statement annually and measure its progress periodically based on completion of specific goals set forth in the annual budgeting process. The final measure of success will be realization of the City of Sebastian's mission. 3 M. Background The City of Sebastian is located at the northern most point of Indian River County. The City's northern boundry is the St. Sebastian River and its eastern boundary is the Indian River Lagoon, part of the Indian River and intra-coastal waterway. The City of Sebastian's history dates back to the 1880s beginning as a fishing settlement. In 1903 President Roosevelt proclaimed Pelican Island, in the Indian River Lagoon, America's first National Wildlife Refuge. The City was first incorporated as the Town of Sebastian in 1924. In the late 1950s General Development Corporation purchased the land from the Mackle family of Miami and began the development of a planned community that is now the City of Sebastian. The City of Sebastian owns and operates a general aviation airport located within the city limits. Sebastian Municipal Airport was built in 1943 by the Navy as a satellite field for naval flight training. In January of 1959 the airport was transferred to the City of Sebastian as part of the Surplus Property Act of 1944 with the provision that it be used solely for aviation purposes. The airport is situated on 625 acres and consists of 2 runways; runway 4 - 22, 4,024' long and 100' wide, and runway 13 - 31, 4021' long and 150' wide. There is a third runway, 9-27, which is currently closed. There are no published instrument approaches available to pilots so activities are limited to visual flight rules. In 1981 the Sebastian Municipal Golf Course was built on 155 acres of airport land. Along with the golf course, there are several aviation related businesses located on airport property. 0 Current tenants of Sebastian Municipal Airport are: Aerotrace Aircraft Maintenance J&S Aviation Full Service Fixed Base Operator Flight Training Aircraft Maintenance Sebastian Aero Services Fixed Base Operator Aircraft Repair Painting Charter and Instruction Sebastian Municipal Golf Course An 18-hole golf course with pro shop, dining, and professional golf instructors located on 155 acres of airport property Skydive Sebastian Complete skydive facility including jump aircraft, equipment store, restaurant, and jump training facilities 5 Velocity. Inc. Manufacturer of Velocity Aircraft Composite Kit Aircraft Manufacturer Sales of Velocity Aircraft Kits Velocity Service Center Velocity Flight Transition Training R& Holland-Sheltair T-Hangars scheduled to be complete in December of 2003 Orange Peel Enterprises. Inc. dba Greens+ The 1993 Airport Master Plan called for the closing of runway 13-31 and the reopening of runway 9-27 for the purpose of noise abatement with the goal of achieving compatibility between the airport and neighboring community. This alternative was never enacted due to cost constraints. The closing of runway 13-31 and the reopening of runway 9-27 have now become very attractive to the City of Sebastian for several reasons: 1) The approach end of runway 31 and the departure end of runway 13 necessitate low- level flight over more densely populated residential areas of Sebastian. The projected increase in aviation activities at the airport will have a negative effect on the relationship between the airport and area residents. The closing of runway 13-31 and the opening of runway 9-27 will result in low-level aviation activities occurring over more sparsely populated areas of the City. 2 2) As identified in the 2002 Airport Master Plan Update, runway 13-31 is in need of major repairs. There are cracks up to 1/2" wide observed on the surface, allowing moisture to infiltrate into the substructure —further deteriorating the runway. Grass is growing in the cracks adding to the perceptions of extensive deterioration. Multiple depressed areas on the runway surface allow water to accumulate causing hazardous conditions for aircraft. Therefore, runway 13-31 requires extensive rehabilitation or reconstruction. 3) Again, as identified in the 2002 Airport Master Plan Update, the City of Sebastian is approaching a point where little additional land is available within the City limits (except on the airport property) for industrial development. By closing runway 13- 31 and reopening runway 9-27, an additional 100 acres would be available for development for aviation and non -aviation industrial/commercial purposes. 4) The current condition of runway 9-27 is no better or worse than that the current condition of 13-31; therefore, the cost to reopen and rehab 9-27 would be about the same as to rehab runway 13-31. The new configuration would significantly simplify the taxiway system, thereby lowering overall costs and aiding in noise abatement. By closing runway 13-31 and reopening runway 9-27 the City of Sebastian has a total of approximately 160 acres of developable land for mixed aviation and non -aviation use. The City of Sebastian is planning to develop the160 acres providing roads, power, and whatever necessary for potential tenants. 7 Florida Power and Light does not provide three-phase power service to the airport property. Currently, there is no City or County water or sewer service available to the airport. Water is provided by wells on the airport property, and individual septic systems handle wastewater. The City of Sebastian is currently bringing water to the west side of the airport, water and sewer to the east side of the airport, and underground three-phase power service to both the east and west sides of the airport. Completion dates are anticipated to be about five to six months for water to the west side, 4 to 12 months for three-phase power available to the west side, and 8 to 12 months for water, sewer, and three-phase power to the east side of the airport. IV. City of Sebastian Objectives and Goals One of the most significant elements of the marketing communications plan is the establishment of objectives and goals. Again, it is important to make the distinction between an objective and a goal. An objective is a broad aim or desirable end, which is seldom achieved in its totality. A goal is an objective that has been made specific as to time and degree resulting in the basis for measurement. Objective 1. Secure substantive yet well -managed industrial and commercial growth on the developable land at the Sebastian Municipal Airport by 2006. Goals 1. Create X number of new'jobs directly related to the developable land at Sebastian Municipal Airport by 2006. 2. Develop X number of acres of the developable land at Sebastian Municipal Airport by 2006. 3. Attract X number of business relocations, expansions, or start ups, measured by new business licenses issued, to the developable land at Sebastian Municipal Airport by 2006. 4. Attract one ( 1) "World Class" FBO to Sebastian Municipal Airport by 2006. 5. Increase the total accessed value of the developable land at Sebastian Municipal Airport by $X by 2006. 9 V. Product Definition Prior to the development of a marketing communications plan for the City of Sebastian and the Sebastian Municipal Airport (Airport), one must have a clear understanding of what precisely we are selling to our customer, and what the customer is purchasing when he or she leases property on the Airport. When one refers to the customer, in this instance, we are referring to a business relocating, expanding or starting a commercial operation. Understanding that people don't buy actual things, people buy hopeful expectations - solutions to problems. From the buyers view, a product is a cluster of value expectations. Our customer is buying (leasing) a promise of satisfaction. During the strategic planning session, the group was tasked to closely define the product from the aspect of the seller and the buyer. What is the City of Sebastian actually selling (leasing) to the customeribuyer and what is the customerlbuyer actually purchasing? The group agreed on the following items from the viewpoint of the buyer and the seller. Product Definition With respect to the Sebastian Municipal Airport as a product, the group was tasked to closely define the product from the aspect of the seller and the buyer. What is Sebastian Selling? 1. Growth Opportunity The City of Sebastian has undergone significant growth in the last ten years with new businesses and residents relocating to the city. This above average growth pattern is projected to continue in the foreseeable future. There is an opportunity for businesses to "get in on the ground floor" and grow with the City. Reportedly, thirty new houses are constructed each month in the City of Sebastian. 10 2. Life Style The City of Sebastian is located on a triangular section of land formed by the Indian River Lagoon and the St. Sebastian River. The City maintains a flavor of old Florida with a slightly slower and less hectic lifestyle than other Florida east coast areas providing spectacular vistas to the east across Indian River Lagoon and to the north and northwest across the St. Sebastian River. 3. Interstate Access For a business, whether relocating, expanding or just starting operations, access to a transportation network is essential for moving raw materials, finished goods and accessing a qualified workforce. The City is adjacent to Interstate 95 providing access to all points on the eastern seaboard from Miami to Maine and, on a more local basis, providing access to commercial air, rail and sea transportation hubs. 4. Low Land Costs The land offered for lease on the Sebastian Municipal Airport is considered to be undervalued as compared to other leasable land in similar municipalities in the state. The lease rate is approximately $.10 per square foot. This is considered to be a significant benefit to attracting businesses to the area. 5. Business Friendly Local Government. The City of Sebastian, along with the federal and state government, is investing a significant amount of funds to redesign and improve the municipal airport. City government is committed to making it as attractive as possible for a business to relocate, expand or startup in the City of Sebastian by making the land area usable and providing infrastructure like roads, sewer and water. 11 6. Relocation Incentives The City Management is considering several incentive packages to lure business to Sebastian. These incentive packages may include some or all of the items listed below: • Up to 30-year lease term • Competitive lease rates ($0.10/square foot/year) as compared to other, similar local airports • Deferred lease payment until Certificate of Occupancy • Partnerships on available grant opportunities • Utilities provided to property line • City permitting fees waived 7. Available Land After the completion of the short-term capital improvement program, there will be approximately 160 acres of land available for lease. The land is expected to be available in two parcels, a 17-acre parcel located in the southeast quadrant of the airport property and a 143-acre parcel located in the northwest quadrant of the airport. Planned capital improvements include access roads, water lines, sewer lines, taxiways, parking for aircraft, aircraft hangars, runway rehabilitation, along with airport management and support facilities. 12 8. Workforce Available The City of Sebastian is located at the northeast central portion of Indian River County between Melbourne and Vero Beach. The City of Melbourne, Florida, located approximately 20 miles north of Sebastian via I-95, has a number of high- tech industries including Harris Corporation and Motorola. A few miles further north on I-95 is the Cocoa/Titusville area known as the Space Coast —home of NASA —and a number of aerospace support industries. Employees of these companies are available to businesses locating at the Sebastian Municipal Airport. Historically, workers employed in these areas are accustomed to commuting the distances required to work at businesses located at the Sebastian Municipal Airport. 9. Educated/Trained Workforce The geographical area of the state in which the City of Sebastian is located consists of a number of high-tech industries including NASA and various aerospace industry related businesses. This attracts a workforce with higher than average education and technical skills to the vicinity. 10. Excellent School System The City of Sebastian hosts six public schools —all part of the Indian River County School District: Pelican Island Elementary School Grades: PK through 51h Total Students: 736 Student/Teacher Ratio: 16.0 2003 Grade, School Accountability Report: A 2002 Grade, School Accountability Report: A 13 Sebastian Elementary School Grades: PK through 5 Total Students: 697 Student/Teacher Ratio: 16.2 2003 Grade, School Accountability Report: A 2002 Grade, School Accountability Report: B Sebastian Junior High Charter* School Grades: 6,7, 8 Total Students: 85 Student/Teacher Ratio: N/A 2003 Grade, School Accountability Report: C 2002 Grade, School Accountability Report: N/A Sebastian River Middle School Grades: 6,7,8 Total Students: 1,178 Student/Teacher Ratio: 21.8 2003 Grade, School Accountability Report: A 2002 Grade, School Accountability Report: B Sebastian River Senior High School Grades: 9, 10, 11, and 12 Total Students: 1,609 Student/Teacher Ratio: 21.2 2003 Grade, School Accountability Report: C 2002 Grade, School Accountability Report: C 14 Wabasso School (Special Education School) Grades: PK through 12 Total Students: 49 Student/Teacher Ratio: 4.9 2003 Grade, School Accountability Report: N/A 2002 Grade, School Accountability Report: N/A * Charter Schools In Florida Charter schools are public schools of choice. They are among the fastest growing school choice options in Florida. Charter schools are largely free to innovate and often provide more effective programs and choice to underserved groups of students. From 1996 to 2002, Florida charter schools have grown from 5 to 222. The enrollment for 2002 surpasses the 50,000-student mark. Within the United States there are in excess of 2,000 charter schools with enrollment in excess of 500,000 students. Charter schools are flexible and have freedom to set their own rules on such issues as curriculum, teaching style, personnel, and discipline. Operated by parents, teachers, administrators and concerned citizens, a charter school can offer a student -directed learning environment or alternative programs that meet the needs of students. Funding for charter schools comes from the state, with a portion of the money allotted per student by the State Legislature and by the local district. Students must fulfill State requirements and pass statewide exams, .however charter schools offer students higher standards and more "hands-on" environment for teaching and learning. 11. Higher Education Opportunities - Academic and Trade There are two 2-year—Indian River Community College and Brevard Community College —one 4-year—Florida Institute of Technology —academic institutions in the Sebastian area. 15 Indian River Community College Indian River Community College is part of the State University system. To earn a Bachelor's degree locally, IRCC offers over 20 2+2 programs in conjunction with Florida Atlantic University, Florida State University, University of Florida, Florida A&M University, and Barry University. The 2+2 programs offered through IRCC and Florida Atlantic University enable students to complete their four-year degree locally. Those with a two-year degree from IRCC are guaranteed admission/transfer to a Florida public university upon graduation. As the state -designated Vocational Technical Center, IRCC offers training in Florida's fastest growing technical careers. Main Campus Ft. Pierce, FL Indian River Community College's main campus is located in the coastal city of Fort Pierce approximately 30 miles south of the City of Sebastian. The Main Campus offers programs for university transfer, career training, professional and personal development, customized business training and free Adult Education/GED preparation. St. Lucie West Campus Port St. Lucie, FL Indian River Community College's St. Lucie West Campus is located in Port St. Lucie, Florida, approximately 40 miles south of the City of Sebastian. Through Associate in Science Degrees and Technical Certificates, students gain hands-on experience in golf course maintenance and landscaping at the golf course lab at the St. Lucie West Campus. A specialized program at the St. Lucie West Campus is the Surgical Technology program. 16 This one-year technology program combines classroom and laboratory instruction with clinical internships. Students gain hands-on experience in the field of surgical technology, which includes the set up of surgical instruments and assisting the surgeon in surgery. Upon successful completion of the program, students are prepared for employment as a surgical technologist in a hospital operating room or outpatient surgical center. Indian River Academy Fort Pierce, FL Indian River Community College's Indian River Academy, the College's public service education center, is located near the Main Campus in Fort Pierce. The Academy is the major training facility for public service and healthcare providers in the four -county area. Associate in Arts and Associate in Science degrees & Technical Certificate programs are offered in public service education career fields at Indian River Academy. Mueller Campus Vero Beach, FL Indian River Community College's Mueller Campus is the educational hub for residents of Vero Beach, Sebastian and Indian River County. The Mueller Campus offers a full schedule of courses for the Associate in Arts Degree and an Associate of Science Degree. Chastain Campus and IRCC Programs Stuart, FL The Indian River Community College Chastain Campus in Stuart provides a wide range of educational opportunities. The Campus and other IRCC educational facilities in Martin County serve thousands of students each year with university transfer programs, preparation for in -demand careers, high-tech and computer training, customized business programs, along with programs specific for professional and personal development. 17 Dixon -Hendry Campus Okeechobee, FL The Indian River Community College Dixon -Hendry Campus provides a wide range of educational opportunities to the residents of Okeechobee County offering both Associate of Arts and Associate of Science degrees and the campus is a state -designated Vocational Technical Center. The Dixon -Hendry Campus serves as a hub for workforce development. Special programs to meet the needs of Okeechobee businesses include degree and certificate programs for child care professionals, nursing assistant programs in cooperation with Raulerson Hospital and area health care facilities, commercial driver training at the Truck Driver Institute, and environmental service/custodial training with local employers. Brevard Community College 'Melbourne, FL Brevard Community College is located approximately 30 minutes north of the City of Sebastian and is easily accessible via I-95. Brevard Community College enrollment is approximately 25,000 students. BCC employs nearly 2,300 faculty and staff members at campuses located in the suburban municipalities of Cocoa, Melbourne, Titusville and Palm Bay. BCC offers an aerospace program at the Kennedy Space Center and an online Virtual Campus offering degrees on-line. A 2+2 program between BCC and the University of Central Florida allows for seamless transfer of credits from BCC's Associate's program to UCF's Baccalaureate programs. BCC is accredited by the Commission on Colleges of the Southern Association of Colleges to award the Associate in Arts, Associate in Science, and Associate in Applied Science degrees. In Florida Institute of Technology Melbourne, FL Florida Institute of Technology is an accredited, coeducational, independent university located in Melbourne, Florida and is the only independent, technological university in the southeastern United States. FIT offers undergraduate programs in science, engineering, science and math education, aeronautics, management, humanities, psychology, and communications; master's programs in science, engineering, aeronautics, business, psychology, communications, education (science, math, environmental and instructional technology); and doctoral programs in science, engineering, psychology, and science and math education. What is the buyer purchasing? 1. Weather The City of Sebastian is located approximately equidistance between Jacksonville and Miami just north of Vero Beach and south of Melbourne. The City is six miles east of I-95 on the east coast of Florida or technically on the banks of the Indian River lagoon, part of the Indian River. The barrier islands separating mainland Florida from the Atlantic Ocean form the Indian River Lagoon and the Indian River. The coastal location and the prevailing sea breeze significantly affect the climate of the area. Temperatures during the summer months rarely reach 100 degrees Fahrenheit, with an average maximum temperature in the summer months of 90 degrees Fahrenheit. The average temperature during the winter months is slightly above 50 degrees Fahrenheit. 19 2. Convenience The City of Sebastian is located adjacent to I-95 connecting all points along the eastern seaboard, thence connecting to the national interstate system. Approximately 30 minutes north is Melbourne International Airport with regional scheduled commercial air service. Sixty minutes north of the City is Orlando International Airport offering national and international commercial scheduled air service. 3. Life Style Life in the City of Sebastian affords a family or individual the best of Florida. Free from urban sprawl and congestion, Sebastian offers the ideal setting for living life to its fullest. Sebastian is a relaxed coastal city removed from the "hectic" lifestyle of other Florida cities. Yet Sebastian is only 65 miles from the attractions and culture of the Central Florida/Orlando area. The 2,000-seat King Center for the Performing Arts offers nationally known performances and cultural art events and, along with beaches and shopping, is located in Melbourne, FL, approximately 30 minutes north of Sebastian. Approximately 15 minutes to the south is the fast growing city of Vero Beach, Florida, with beautiful beaches; a host of year-round outdoor activities; and cultural venues such as the Riverside Theatre offering professional, regional theater, the Centre for the Arts featuring exhibitions, educational programs and special events; and the Vero Beach Theatre Guild the areas very own community theater. 20 4. Low Crime Rates For the year ending December 31, 2002, the overall crime rate in Florida dropped by 3.3% or 5,389.4 offences per 100,000 population as compared to 5,579.9 offences per 100,000 population in 2001. This represents a 30-year low in Florida's crime rate and a 34.2% drop in Florida's overall crime rate since 1993. The overall crime rate in the City of Sebastian is reported to be 2,709 offences per 100,000 population as compared to Indian River County reporting 4,005 per 100,000 population and, as stated above, the state of Florida reporting 5,389.4 cases per 100,000 population. The number of specific crimes increased from 2001 to 2002 due primarily to an increase in population. There were no murders reported in Sebastian in 2002, sexual assaults remained unchanged from 2001 at 4, robberies increased by 17.4% from 46 in 2001 to 54 in 2002, aggravated assault cases increased by 8 over 2001. Overall non-violent crimes increased by 9.5% from 2001 to 2002. 5. Lower Cost of Business Lease rates for the land located on Sebastian Municipal Airport, estimated at $.10 per square foot, are considerably less than other comparable areas in the state. The city tax millage rate 4.5904 cents is considered very attractive to businesses. 6. Competitive Lease Rates - Airport Lease rates are planned to be in the range of $.10 per square foot, lease terms of up to 30 years and deferred lease payments until the Certificate of Occupancy is awarded, making the airport property very competitive when compared to other similar areas within the state of Florida. 21 7. Non -Union Work Force Florida is a "right to work" state and the City of Sebastian and Indian River County are basically nonunion areas. 8. "Sebastian" The City of Sebastian can be considered to be one of the last "old Florida" cities. Its location, wedged between the St. Sebastian River and the Indian River lagoon, is considered a desirable area to live, work, and raise a family. On the surface, life seems to move a little slower when compared to South Florida or the Central Florida/Orlando area. The location and weather make the City an ideal area for companies relocating from northern areas of the United States or from South Florida. 22 VI. Product Distribution In the case of the real estate lease opportunities available at the Sebastian Municipal Airport, distribution is through contact with the City Manager, Terrence R. Moore. 23 VII. Customer Identification —Target Audience Customer identification was broken down into primary and secondary business and specific targeting by geographic location. The group also identified specific industries to avoid. Primary 1. Light Industrial 2. Clean Industrial 3. 50-100 Employees 4. 3-Acre Sites - 60,000 sq. ft. 5. Aviation 6. Marine 7. Surfing 8. Medical Industry 9. Aerospace Technology 10. Fishing Equipment Manufacturing 11. Eco Tourism Related Businesses Secondary 1. Hospital/Medical 2. Retail 3. Aquaculture 4. Family Entertainment 5. Service Industry 24 Geographic Location 1. South Florida 2. Northeast 3. New England 4. Mid Atlantic 5. Brevard County Industries to Avoid 1. Heavy Industrial/Manufacturing 2. Chemical 3. Fertilizer 25 VIII. Competitive Analysis Comparable Cities Melbourne Located on Florida's Space Coast, Melbourne is approximately 30 minutes north of the City of Sebastian in Brevard County. Regional commercial air service is available at Melbourne International airport. Melbourne and Florida's Space Coast is considered a "high-tech" venue due to the presence of several major electronic manufacturers such as Motorola, Rockwell Collins, Northrop Grumman Corporation, and Harris Corporation. The city of Melbourne is approximately 35.4 square miles in size, with about 75% of that land in use. The population is 72,806 (according to the University of Florida Bureau of Economic and Business Research), and is growing by about 2% each year. The City of Melbourne offers an Ad Valorem Tax Exemption to relocating or expanding businesses. Vero Beach Vero Beach is located in southern Indian River County and is noted for its tourism, winter residents, and retirees. Historically, Vero Beach has been synonymous with Indian River County. However, within the last several years, the City of Sebastian has become very aggressive with respect to attracting businesses. Competition within Indian River County between the city of Vero Beach and the City of Sebastian can be anticipated. The City of Sebastian has surpassed Vero Beach in population. FM Kissimmee The city of Kissimmee is located in Osceola County approximately one hour northwest of Sebastian and 30 minutes south of Orlando. The city is approximately 17 square miles and the 2001 population is reported to be 49,600. The city's population has grown approximately 600% in the past thirty years. The city of Kissimmee is one of the fastest growing communities in Central Florida. The City has seen phenomenal growth in the areas of business, industry, tourism, and its residential population. Over the past five to ten years, the city of Kissimmee has become very aggressive in attracting businesses to the area. Palm Bay The city of Palm Bay, FL, is located on Florida's east coast in Brevard County just south of Melbourne. The population is reported to be approximately 86,500. The city is actively seeking commercial and industrial development to help balance the residential development that has already occurred within the city. The city recently created a strategy to link high tech industry job seekers with private sector employers within the city. The city's Web site offers basic guidelines on local, state and federal requirements for starting up a business in Florida. Stuart, FL The city of Stuart is located in the northern portion of Martin County approximately one hour south of Sebastian. The population of the city is reported to be approximately 14,700. Surrounding Counties 27 St. Lucie County St. Lucie County, Florida, is located to the south of and is contiguous with Indian River County. The two major cities are Ft. Pierce and Port St. Lucie. The estimated 2002 population of the county is 200,340. St. Lucie County is very aggressive in its solicitation of expanding or relocating businesses to the County. St. Lucie County's Web site includes an extensive section targeting business relocations/expansions. The following is a quote from the county's website: "To assist a qualified expanding or relocating company, St. Lucie County has specific economic development programming available for targeted industry sectors. In order to ensure the industry base supports our citizenry and environment, St. Lucie County has targeted the following industries: Agriculture Tourism and Recreation Manufacturing and Light Industry" St. Lucie County lists 14 industrial parks and industrial areas zoned for light and heavy industry. The county offers a number of economic and financial incentives too numerous to list —see appendix. St. Lucie County is also targeting the ecotourism industry. IX. Strengths Strengths and weaknesses (internal) of the product were discussed along with threats and opportunities (external). A list of significant strengths, weaknesses, threats and opportunities affecting the success of City of Sebastian's development plans for the Sebastian Municipal Airport was compiled. 1) Quality of life The "slower" less hectic life style makes it very attractive to business owners and to employees locating to the Sebastian area. 2) Pro Business Development Community — Government City government is very interested in attracting businesses to the City of Sebastian and the Sebastian Municipal Airport. Although there are no specific relocation packages, city government will work with businesses to make the move to Sebastian financially attractive. 3) Competitive Lease Rates The City has established very competitive lease rates for the property located on the Sebastian Municipal Airport property. 4) Law/Competitive Tax Rates The real estate tax rate is currently at a millage rate of 4.5904 and is considered very competitive to similar offerings. 5) Potential for Public/Private Grants There is an opportunity for businesses to partner with the City of Sebastian on certain projects through the FAA, FDOT Aviation Division, and the Community Redevelopment Agency. 29 6) Partnerships with Sebastian Community Redevelopment AgencylTax Increment An opportunity offered by the City of Sebastian to partner with the City on specific projects. 7) Financing The City of Sebastian has several options for financing projects. For example, the new City Hall was financed through revenue bonds. The City participates in the Community Redevelopment Agency along with private/public partnerships. 8) Economic Stability - City of Sebastian The City of Sebastian has retained the same tax millage rate of 4.5904 for the past three years. 9) School System There are six public schools within the City of Sebastian run by the Indian River County School District, -consisting of two elementary schools for grades PK-5, a middle school for grades 6-8, a Charter junior high school, and a high school for grades 9-12. 10) Educated Workforce The City of Sebastian's workforce is not considered "high-tech" in the pure meaning of the phrase, but it is considered educated. Approximately 90% of the population 25 years and over are high school graduates or higher. Approximately 14 percent of the population 25 years and over have earned a bachelor's degree or higher. 30 11) Higher Educational Opportunities Indian River Community College has several campuses within 30 minutes of the City of Sebastian and both Florida Institute of Technology and Srevard Community College are located 30 minutes to the north in Melbourne, FL. Sixty minutes to the northeast (in Orlando) there are numerous colleges and universities offering academic and trade curriculum. 12) Grovvth Management The City of Sebastian's Mission Statement specifically addresses growth management and states in part; "Develop a Growth Management plan that recognizes the City's current and future growth needs." The Growth Management Department is responsible for ensuring compliance with the Mission Statement, and the Mission Statement states in part; "Each Department of the City of Sebastian will develop and accept responsibility for specific action steps designed to achieve its portion of the mission." 13) Available Workforce The workforce in the City of Sebastian and vicinity, although not considered highly educated, can be considered literate and available. The historical overall unemployment rate for the area over the past ten years and the projected unemployment rate for the next ten years is significantly greater than that of the state of Florida indicating that the influx of residents to the area continues to outpace job creation. 14) Airport Improvement Plan The City of Sebastian has an aggressive plan to revitalize the Sebastian Municipal Airport making it very attractive for specific industries and/or businesses to locate on Airport property. 15) Community Support The City Council and the City Manager have the complete support of the local community. 31 16) Weather The coastal location and the prevailing sea breeze significantly affect the climate of the area. Temperatures during the summer months rarely reach 100 degrees Fahrenheit, with an average maximum temperature in the summer months of 90 degrees Fahrenheit. The average temperature during the winter months is slightly above 50 degrees Fahrenheit. 17) Water Recreation Residents enjoy direct access to the Indian River Lagoon, the Indian River, St. Sebastian River, and the Atlantic Ocean providing fishing, diving, and sailing activities The first designated wildlife sanctuary, Pelican Island, is located in the Indian River Lagoon offering sanctuary to numerous species of Florida birds. 18) Access To 1-95 Six miles to the east of Sebastian is I-95, connecting the City of Sebastian to the rest of the United States through the interstate systems and providing access to regional and national/international scheduled air service in Melbourne and Orlando, respectively. 19) No City Impact Fees The City of Sebastian levies no impact fees for businesses locating to the City. 32 X. Weaknesses 1. No Formal Tax Incentive offered to businesses to relocate to Sebastian The City has considered the following incentives: • Up to 30-year lease term • Very competitive lease rates • Deferred lease payment until Certificate of Occupancy • Partnerships on available grant opportunities • Landlord provides all utilities to property line • City permitting fees waived 2. Lack of High Technology Workers/Low Level Workforce The local workforce is considered to have low -tech skills; however, a high-tech workforce is available 30 minutes north in Melbourne, FL. 3. No Deep Water Port The closest commercial port is the Port of Palm Beach, in Rivera Beach, FL, approximately 2 hours south of the City of Sebastian. The Port of Palm Beach is the fourth busiest container port in Florida and the eighteenth busiest in the continental United States. In addition to intermodal capacity, the port is a major nodal point for the shipment of bulk sugar, molasses, cement, utility fuels, water, produce and breakbulk items. 33 Vessel entrance is through an inlet channel 300 feet wide with no aerial obstructions leading into Lake Worth. Berthing is a short 20 minutes from first seabuoy to anchorage with operating drafts of minus 32 feet mean low water (MLW). The largest vessels capable of through -putting via the port's "dog leg" channel are those up to 700 feet length overall. A swing (turning) basin measuring 1,100 feet by 1,400 feet provides a safety margin for cruise and cargo vessels at minus 32 feet MLW draft. The port has three slips, four marginal wharves and two ro/ro ramps for a total of 5,200 linear feet of berthing space. The Florida East Coast Railway Company (FEC) services the docks and piers through the port's industrial rail switching operations. A Foreign Trade Zone (FTZ #135) has been in operations since 1987. It encompasses several port and private sector sites. There is one privately -owned general purpose warehouse in Boca Raton, four privately -owned warehouse sites in Martin County (near Stewart International Airport), the Port of Palm Beach Cold Storage terminal, and one 18,000 sq. ft. warehouse with five adjacent unimproved acres is located at the Port Executive Plaza. 4. Currently Substandard Airport Facilities Significant upgrades to the airport facilities are scheduled to be completed by August 2004. 5. No Rail Access FEC railway does not provide passenger or cargo services to the City of Sebastian. The closest rail access points are Cocoa, Ft Pierce, and West Palm Beach, FL. W Cocoa; FL FEC Railway's City Point facility serves a major local aggregate distribution center. This facility handles shipments of aggregates from South Florida along with boxcar traffic and wood products, and serves as a bulk unloading facility for tank cars of com syrup. Bulk Transfer Services Full Service Reload/Transload Center Boxcar and Center -Beam Flatcar Unloading Inside & Outside Storage Trucking Throughout the State of Florida Centrally Located on I-95 and the Bee Line Expressway (State Road 528) Access to Temperature and Humidity Controlled Storage Buildings Hydraulic Cranes, Forklifts with Capability up to 60,000 lbs. Commodities Wallboard Lumber Roofing Products Steel Beam & Rebar River Rock in Bags in Boxcars Scrap Paper General Commodities Bulk Commodities Fort Pierce, FL At Fort Pierce, the FEC has a large switching operation and an interchange point with South Central Florida Express, a shortline railroad, shipping mainly sugar products across the state. An aggregates distribution facility is also located here. 35 Bulk Transfer Services Boxcar and Center -Beam Flatcar Unloading Inside & Outside Storage Trucking Throughout the State of Florida (Flatbed or Van) Centrally Located on 1-95 '& Florida Turnpike Ground Space Available for Short-term'Storage Commodities Lumber Wallboard Steel Roofing Products Bricks & Pavers General Commodities West Palm Beach, FL FEC Railway's West Palm Beach yard serves the Port Palm Beach and includes an aggregates distribution facility. The Florida East Coast Railway Company (FEC) services the docks and piers through the Port of Palm Beach's industrial rail switching operations. The Port of Palm Beach is the only port facility in South Florida operating a rail system with pier -side box, hopper and intermodal cars operating 24 hours a day. Located on Port property are six miles of trackage for intermodal transfers and handling. 6. Limited Industrial Land The City of Sebastian has limited industrial land for development. The 160 acres on the Sebastian Municipal Airport represents the largest tract available. 36 7. Perceived Lack of Infrastructure The perceived lack of infrastructure relates to the Sebastian Municipal Airport regarding services available to tenants. This perception will be alleviated once the airport renovations are completed. 8. Lack of Awareness Due primarily to the absence of marketing, there is currently a lack of awareness with regards to opportunities available to industrial and commercial business within the City of Sebastian and the Sebastian Municipal Airport. 9. No Instrument Approaches to Airport Precision and non -precision instrument approaches to airports allow commercial and business aircraft to terminate at a specific airport when the airport is experiencing instrument metrological condition. The absence of instrument approaches greatly limits the commercial and business traffic at Sebastian Municipal Airport. 10. 4000' Runways Runway lengths, widths and pavement strength limit the types of aircraft that can safely utilize the airport. After completion of the airport development plan, the Sebastian Municipal Airport will remain limited to operations of "small aircraft with 10 passenger seats or less." The runway pavement strengths exclude commercial charter and jet operations. 37 11. No Scheduled Commercial Air Service Currently, Sebastian Municipal Airport offers no scheduled commercial air service. The closest regional scheduled commercial air service is at Melbourne International Airport approximately 30 minutes north of Sebastian and the closest national and international scheduled air service is located at Orlando International Airport approximately one hour northwest of Sebastian. 12. No Downtown Business District The City of Sebastian does not have a traditional "downtown" business district; however, the Riverfront area (US-1 and Indian River Drive) is reported to be evolving into the City's main business district. Through public -private partnerships, the Riverfront area and other areas of the City are undergoing commercial development. 13. Major Access Roads through Residential Areas The major access road from I-95 into the City of Sebastian is CR 512, which terminates at the Riverfront business district. Branching off from CR 512 is CR 510. CR 510 proceeds east just south of the City terminating in Wabasso just south of the City and CR 505. CR505 runs north along the western edge of the City and the Airport terminating in Roseland, FL, just north of the City. Both CR 505 and CR 512 pass through residential areas. 79M XI. Threats 1. Economy The health and vitality of the overall economy directly affects the success of the marketing effort to lease the Airport's property. As the economy continues to strengthen, business relocation activities and inquiries will naturally increase. A continued sluggish economy will slow relocation activities. 2. Local Community Local residents appear to be extremely vocal about changes to the area. There is some concern that the local residents may resent certain types of businesses locating to the City for a number of reasons including the "not in my backyard" syndrome along with the resistance to growth and change. A concern is the primary road system that runs through residential areas of Sebastian. These roads would be the primary means for ingress and egress for industry located at the Airport. 3. Change of Life in Sebastian Historically, individuals and families moved to the City of Sebastian for the "old Florida" atmosphere. The growth and changes to the area have already engendered negative feedback from segments of the community. The inevitable growth of the Sebastian area and the addition of businesses and industry to the airport will certainly have —to a degree —a negative affect on the perceived way of life in Sebastian. 4. Global Affairs The sluggish economy and the threat of renewed terrorist strikes have a significant short-term impact on the success of the Sebastian Municipal Airport strategic marketing communications plan in the sense of the length of time it will take to achieve the stated goals for leasing the property. Long-term however, this should not be an issue. The property location and infrastructure is ideal for locating targeted businesses and industry to the area. mJ 5. Competitive Response Historically, the City of Sebastian has been silent with respect to marketing to business and industry for commercial relocations. As soon as Sebastian begins to market the Airport, one should expect an increase in marketing efforts from competitive cities like Vero Beach, Palm Bay, Stuart, Melbourne, Kissimmee and surrounding counties including Sebastian's own Indian River County. .M XH. Opportunities 1. Growth The City of Sebastian is poised for growth. A business locating to Sebastian will be in on the "ground floor" with respect to growing with the City. The annual growth rate in Indian River County is projected to be 1.9 % versus the State of Florida annual growth rate projection of 1.6%. The City of Sebastian is growing at the rate of approximately 30 new houses per month. 2. Grant Opportunities There are grant opportunities available through the FAA and the Florida Department of Transportation Aviation Division. A new tenant, Holland/Sheltair has recently begun taking advantage of the grant opportunities through FDOT Aviation Division. 3. Ecotourism Growth Travel behavior has changed, and according to experts, people are more interested in historical, cultural and nature -related experiences. Ecotourism is not just a marketing catch -phrase. It is a term used to describe ethical tourism that focuses on appreciation and preservation of a specific area's flora, fauna, ecosystems and culture. The basic idea behind ecotourism is that visitors to an area can contribute to the environment and support the people who live in that environment. If the local people can make a living from ecotourism, then there is less need for more industrial /commercial industries in that location. 41 Groups embracing ecotourism are growing at an astonishing rate, and the financial impact of these environmentally conscious groups is gaining momentum. A group known as LOHAS, Lifestyles of Health and Sustainability, is responsible for a $226.8 billion United States marketplace for goods and services that appeals to consumers who value health, the environment, social justice, personal development and sustainable living. Pelican Island, the St. Sebastian River, and the Indian River Lagoon are excellent attributes for promoting ecotourism. 4. Recent National Exposure -Pelican Island In March 2003 the City of Sebastian received national exposure with the 1001h Anniversary of the country's first wildlife refuge, Pelican Island. The opportunity exists to continue to build awareness about the City of Sebastian using the established awareness of Pelican Island. 5. Waterfront Community The City of Sebastian is located on the banks of the Indian River Lagoon to the east and the St. Sebastian River to the north and northwest. The Indian River Lagoon is protected by a string of barrier islands, but there is direct access to the Atlantic Ocean through the Sebastian Inlet. A myriad of activities are available from sport fishing, sailing, bird watching to water sports. The location of Sebastian is a definite draw to business owners and employees considering locating to the Sebastian Municipal Airport. 6. Unique Community In one of the fastest growing states in the country, the City of Sebastian is definitely unique. Sebastian is a city that managed to hold on to the slower pace and relaxed atmosphere that one would expect from a Florida coastal city of the past. Even with its proximity to I-95 and US-1, Sebastian has retained its small town character and charm of a waterfront community. 42 7. Positive Growth/Change In General Aviation Prior to September 11, 2001, the general aviation (GA) industry was experiencing a slow but steady increase in sales and pilots trained. Despite the recent sluggish economy and 9/11, the GA industry remains viable. There are a number of innovative GA programs on the drawing board. One such program is the Small Aircraft Transportation System Program (SATS'). The SATS program is designed to incorporate all federal airports, which includes Sebastian Municipal Airport, in an innovative transportation system. The vision for SATS is to provide the nation with an alternative to existing road and airline choices for travel. The SATS technologies enable entrepreneurs in the transportation industry to create access to more destinations in less transit time. More than 98 percent of the U.S. population currently lives within a 30-minute drive of over 5,000 public -use landing facilities. This infrastructure is an untapped national resource for national mobility. As a result, NASA has set the goal of "reducing public travel times by half in 10 years and two-thirds in 25 years.". Furthermore, this travel alternative must be cost -competitive with existing choices and meet the public expectations for safety and accessibility. The early consumers of SATS would have access to fractional or air -taxi -like systems with hired pilot operations. SATS technology development is intended to enable affordability of on -demand services to even the smallest of markets. Scheduled services may also appear in more dense transportation markets as entrepreneurs discover effective ways to meet market demands. NASA envisions that the SATS technologies will enable an advanced generation of "smart" aircraft and "smart airports." These technologies will be designed to enable access to virtually any runway end or helipad in the nation in aircraft that have jet performance at propeller -like prices. Small Aircraft Transportation System (SATS). See http://sats.nasa.crov/. 43 The SATS program is just one vision that has the potential to revitalize the country's general aviation airports and promote the growth of general aviation. U XIII. Unique Selling Proposition A product of the marketing communications plan development is the unique selling proposition (USP). The USP is the one element that is unique to the City of Sebastian and Sebastian Municipal Airport that will position it over the competition. 1. Small Town Flavor 2. Potential Growth 3. Well Managed Growth 4. Natural Bounty 5. Small Town Environment 6. Unique/Preserved 7. Location Unique Selling Proposition "Sebastian" 45 XIV. Strategic and Tactical Plan Development Marketing Element Action Advertising Branding Campaign Promotion Fly ins Direct Mail Campaign Sales Materials Point of Purchase -Trade Shows -Fly ins -Chamber of Commerce Relocation Guide Sebastian Municipal Airport Product Design Renovation Sheltair T Hangars New Airport Administration Building N BAA `04, `05, `06 AOPA Expo `04, `05, `06 Personal Selling CoreNet '05 Fly ins Web Site � Packaging Branding Campaign Airport Renovation New Administration Building Price -Value iPublic Relations Branding Campaign Outsourced ongoing public relations efforts. Strategy No. 1 Stratea% Develop a comprehensive. strategic marketing communications plan. Whv did you choose this strategv? A comprehensive marketing communications plan will assist in the economic development of the City of Sebastian and provide the framework for effectively marketing the City of Sebastian and the developable land at the Sebastian Municipal Airport to the target market. An initial strategic planning session will provide an opportunity for the responsible parties to agree on the specifics of the product, commercial/industrial land located in the City of Sebastian, and to develop a strategy for marketing the product to the target audiences resulting in the development of the marketing communications plan. How long will it take you to imvlement or achieve this stratea\,? Strategy implementation is approximately 60 days. Did you consider other alternative strategies? Yes No X Please elaborate. Moving forward without the comprehensive strategic plan would not be prudent. How is the strategv suoaortive of and consistent with the overall goals and objectives? The strategy is designed to help achieve each of the goals and objectives stated in the strategic planning session. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No, Strategy Develop a comprehensive strategic marketing communications plan. Action Step Implementation Schedule Action Steps Start Conduct a strategic planning ses- 7/03 sion with the City of Sebastian senior management and Patterson/Bach Communications, Inc. Finish Discussion relative to short-term perform - Action Step Responsible ance results (i.e., most likely areas of impact Implementation person such as Web;site visits, etc.) Cost 7/03 Provides information for the development of a comprehensive, competitive market- ing communications plan. Strategy No. 2 Strateev Position the City of Sebastian as "What Florida is Supposed to be." Live, work and raise your family in the "last," "real" Florida town. Whv did you choose this strateav? The City of Sebastian is a late entrant into a very active and aggressive economic development market. Florida cities, to varying degrees, are actively engaged, and have been for some time, in attracting business and industry. How long will it take you to implement or achieve this strateav? Approximately 12 to 18 months to reach a sustainable level of awareness and comprehension of the City of Sebastian and the opportunities located at the airport. Did you consider other alternative strategies? Yes X No Please elaborate. To cut through the clutter associated with the marketing and branding efforts of other Florida cities, counties, and economic development regions, the City of Sebastian has to develop a distinct image or brand with which to communicate its message. How is the strateav suvportive of and consistent with the overall Qoals and objectives? The strategy is designed to help achieve each of the goals and objectives identified in the strategic planning session. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No. 2 Strategy Position The City of Sebastian as "What Florida is Supposed to be." Live, work and raise your family in the "last," "real" Florida town. Action Step Implementation Discussion relative to short-term perform - Schedule Action Step Responsible ante results (i.e., most likely areas of impact Action Steps Implementation Person such as Web site visits, etc.) Start Finish Cost Develop a marketing communica- 1/04 3/04 Will provide a communications platform to tions campaign to build awareness compete with competitive cities and regions. of the City of Sebastian. Implement a media campaign to 5/04 12/06 Will increase awareness and comprehension of the City of Sebastian resulting in inquiries, reach the target markets. Web site visits or telephone contacts, pro- viding follow-up opportunities. Develop materials for point of pur- 1/04 3/04 Provides pertinent information to businesses chase to be used at Fly -ins, trade in the expansion or relocation process that shows, and one-on-one sales. is too lengthy to be included in the initial mass communications to the target markets. Provides in-depth information to potential In conjunction with the Sebastian businesses on the Sebastian River Area and River Area Chamber of 1/04 3/03 the City of Sebastian. Provides a means for Commerce and local businesses the Chamber and local businesses to partici- in the area, develop a official relo- pate in the economic development process. cation guide. Retool and update the City of 11/03 2/04 Call to action will direct prospects to the Sebastian's Web site targeting Web site. The Web site will provide current, companies considering relocation in-depth information and visuals and provide and relocation consultants. the means to advance the prospect to the next step in the purchase process -- an on - site visit. Strategy No. 3 Strategv For the purpose of economic development, build awareness, comprehension of and preference for relocation and expansion opportunities in the City of Sebastian within the relocation/expansion consultant industry and the relocation/expansion and site selection media community. Whv did you choose this strates!v? The City of Sebastian is competing with well -established national and regional campaigns promoting areas in Florida and Georgia for relocation and expansion. These competitive markets are investing significant resources to create and maintain top -of -mind awareness, not only with target businesses but with the professional relocation/expansion industry as well. How long will it take you to implement or achieve this strateav? Approximately 18 to 24 months to reach a sustainable level. Did you consider other alternative strategies? Yes X No Please elaborate. Members of the relocation/expansion site selection industry and media must be constantly informed of opportunities available and the benefits of locating a business in the City of Sebastian. If a process to begin building awareness and comprehension of the City of Sebastian is not initiated, then the goals as stated will not be achieved. How is the strategy supportive of and consistent with the overall coals and objectives? The strategy is designed to help achieve each of the goals and objectives stated in the strategic plan. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No. 3 Strategy Build awareness, comprehension of and preference for the relocation and expansion opportunities at the Sebastian Municipal Airport within he relocation/expansion consultant industry and the relocation/expansion and site selection media communiDiscussion relative to short-term perform Action Step implementation Schedule Action Step Responsible ance results (i.e., most likely areas of impact Implementation Person such Web site visits, etc.) Action Steps Start Finish Cost Retain the services of a public 8/03 relations/marketing communica- tions firm. j 2/06 Consistently provide in depth information to expansion and. relocation industry and the business press with the goal of build- ing awareness and comprehension of the opportunities associated with the City of Sebastian and the Sebastian Municipal Airport among the targeted decision -makers and influencers. Strategy No. 4 Strategv Direct market the relocation/expansion opportunities in the City of Sebastian at the Sebastian Municipal Airport to aircraft owners that own a business in Miami -Dade, Broward, and Palm Beach counties through a highly targeted sales campaign. Whv did you choose this strateav? To successfully compete in the extremely competitive economic development genre, the City of Sebastian has to implement a business -to -business sales campaign targeting select companies. The high cost of living and the fast paced and crowded nature of south Florida creates a natural desire for a business to migrate to a less costly region providing a more desirable lifestyle for management and personnel. Direct business -to -business selling provides the opportunity to target businesses that would be a prime tenant of the City of Sebastian at the Sebastian Municipal Airport. How long will it take vou.to implement or achieve this strate2v? Approximately three to four months. Did you consider other alternative strategies? Yes_X No Please elaborate. Relying on mass marketing was considered however a direct mail campaign targeting aircraft owners in south Florida that own a business is an effective and efficient means to get the message to an audience with a propensity to relocate. How is the strateav suaaortive of and consistent with the overall Roals and obiectives? The strategy is designed to help achieve each of the goals and objectives stated in the strategic plan. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No. 4 Strategy Direct market the relocation/expansion opportunities at the Sebastian Municipal Airport to aircraft owners that own a businesses in Miami -Dade, Broward, and Palm Beach counties through a highly targeted sales campaign. Action Step Implementation Schedule Action Step Responsible Discussion relative to short-term p performance results (i.e., most likely areas of Action Steps Start Finish Implementation Cost Person impact such as Web site visits, etc.) Develop a target list of 5/04 5/04 A direct sales campaign targeting identi- companies based on predeter- fied companies, will provide an effective mined criteria. and efficient means to communicate the opportunities available in the City of Sebastian and at the Sebastian Develop a series of direct market- 5/04 6/04 Municipal Airport to individual decision ing tools to mail to the target list of makers that have a willingness to seri- companies located in the tri-coun- ously consider relocating his or her busi- ty area of South Florida. ness. Mail the direct marketing element 8/04 9/04 to the target businesses. Strategy No. 5 Strategv Develop:a promotional campaign to provide prospects with an opportunity to experience the City of Sebastian and the improvements at the Sebastian Municipal Airport and the features and benefits of locating a business in the City of Sebastian. Whv did you choose this strateev? The City has to be able to provide a prospect with an opportunity to experience the Sebastian area and the Sebastian Municipal Airport. There is no effective means to promote the Sebastian area and the Airport to a prospect due to the uniqueness of the product. A prospect has to either tour the City and the Airport in person or be provided with an electronic tour. How lone will it take you to implement or achieve this strate2v? Ongoing. Did you consider other alternative strateLTies? Yes No X Please elaborate. Promotions are a primary element of the marketing process and cannot be overlooked. How is the strateQv su000rtive of and consistent with the overall Lyoals and objectives? The strategy is designed to help achieve each of the goals and objectives stated in the strategic plan. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No. 5 Strategy Develop a promotional campaign to provide prospects with an opportunity to experience the Sebastian Municipal Airport and the features and benefits of locating a bus Hess at the airport. Action Step Implementation Discussion relative to short-term Schedule Action Step Responsible performance results Action Steps Implementation Person (i.e., most likely areas of impact such as Start Finish Cost Web site visits, etc.) Initiate monthly fly -ins for pilots at 9/04 the airport. 12/06 Provides pilots with an opportunity to see the changes and resulting opportu- nities available in the City of Sebastian and at the Sebastian Municipal Airport. Attend selected trade shows 1 /04 12/06 Provides an opportunity for one-on-one including aviation, eco tourism, sales to target industry representatives. fishing and water recreation shows. Strategy No. 6 Strategv Partner with the Sebastian River Area Chamber of Commerce to promote the City of Sebastian and the Sebastian River area capitalizing on the synergy of the combined strengths of the City and the Chamber. Whv did you choose this strate2v? The City of Sebastian and the Sebastian River Area of Chamber of Commerce each have limited financial resources earmarked to attract business and industry to the City of Sebastian and the Sebastian River area. By combining its resources with the City of Sebastian, the Sebastian River Area Chamber of Commerce will be able to achieve its goals sooner and/or with less financial resources. How lone will it take you to implement or achieve this strate2v? Strategy implementation is approximately 60 days. Did you consider other alternative strate«ies? Yes X No Please elaborate. By not partnering with the Chamber, the City loses the opportunity to enhance its marketing efforts. How is the stratepv supportive of and consistent with the overall Lyoals and objectives? The strategy is designed to help achieve each of the goals and objectives stated in the strategic plan. City of Sebastian, Florida 2003 Marketing Communications Plan Strategy No. 6 Strategy Partner with the Sebastian River Area Chamber of Commerce to promote the City of Sebastian and the Sebastian River area, capitalizing on the synergy of the combined strengths of the City and the Cr amber. Action Step Implementation Schedule Action Steps Start Redesign the Sebastian River 5/04 Area Chamber directory as a relo- cation guide and sales element. Finish Discussion relative to short-term Action Step Responsible performance results Implementation Person (i.e., most likely areas of impact such as Cost Web site visits, etc.) 7/04 By converting the Chamber directory to a relocation guide, the City and the Chamber have a comprehensive tool to market the City of Sebastian along with the Sebastian River area. City of Sebastian Time Line 2003 8/03 9103 10/03 .11I03 4103 I I I 1 /03 2/03 3/03 5/03 6/03 7103 � I j = I I I I Conduct Marcom Marcom Develop & Begin Strategic Plan Plan Implement Retooling Planning Development Complete 1 st Strategies Year o Stiteb Session 12103 I A.- City of Sebastian Time Line 2004 4/04 5/04 1/04 2/04 Sites, I i plants, & Parks Begin Expansion Develop- Management ment of Communi- Site Selection cation Materials Develop Set Trade Direct Mail Show List Design and Schedule produce Direct Mail Element 11104 12104 9J04 i 0/04 � •.- g/04 7/04 I I Evaluate 6/04 I I l Begin Fly progress To Date Area Plants, Sites, ment Develop In Promo - Area & Parks Development tions at Airport Expansion AOPA Pilot Management Site Selection Direct Mail AOPA Pilot to South Florida Drops Begin Redevelop- ment of SRACC Relocation Guide City of Sebastian Time Line 2005 1 /05 2105 3/05 4/05 5/05 6/05 7/05 8/05 9/05 10/05 11 /05 12//05 ' = i I I I I I I I I I XV. Media Plan--2004 Plants, Sites, & Parks Bi Monthly 1/4p, B/W 2 x's, May, Jul $4,150 Area Development Monthly 1/4p, B/W 2 x's, Jun, Aug $3,870 Expansion Management Monthly 1/4p, B/W 2 x's, May, Jul $3,670 Site Selection Bi Monthly 1/3p, B/W 3 x's, May, Jul $4,624 AOPA Pilot Monthly 1/3p, B/W 2 x's, Jul, Aug $8,940 47 Client: Sebastian Municipal Airport PA'TTERSON/EACH Dater September 2003 clan:mainicatic,ns. [aac. page: 1 OF Market: Sebastian, FL JAN. FEB. MAR. APR. MAY JUN. JUL. AUG. SEP. OCT. NOV. DEC. 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 2004 ESTIMATED 29 5 1219 26 2 9 16 23 1 8 15 22 29 5 12 19 26 3 10 17 24 31 7 14 21 28 5 12 190126 2 9 16 23 30 6 132C 27 4 11 18 25 1 8 15 22 29 6 13 20 27 TOTAL Plants, Sites, & Pks X X $4,150 Area Development Expansion Mat Site Selection AOPA ESTIMATED MONTHLY COST X K X X X X X X $3.870 $3,670 $4,624 $8,940 $25,254 XVI. Research In order to develop a creative approach, it is recommended that focus group research be conducted with area businesses with an emphasis on real estate agents. The research will help develop the messaging required to market the City of Sebastian and the Sebastian Municipal Airport. XVII. Public Relations Plan Innovative public relations strategies are key components of successful integrated MAR- COM programs. There is a direct correlation between the effectiveness of the public relations strategies and the success of meeting and exceeding objectives and goals. Because public relation strategies are inherently designed to create an advantageous and long-lasting impression with target external audiences, they also inadvertently serve to sway the mindset of the internal organization and prompt the stakeholders to "buy into" the desirability and advantages of the City. This charming representation becomes one of the benefits of living and doing business there, and the advantages are exaggerated exponentially. This public relations campaign is designed to produce measurable changes in people's attitudes, top -of -mind awareness, and even preference. As marketing/communication influences mind -share, it sets the stage for increasing market share. Public Relations Patterson/Bach will execute a public relations strategy for the City of Sebastian by disseminating key messages to the identified target audiences. The campaign will be multi- faceted and based on the pre -determined goals and objectives contained herein. The public relations audience will include but will not be limited to all prospective industry leaders, business owners, and key players in the aviation field as well as other fields that will aid in the economic growth of Sebastian. Media Relations For media relations, the agency researches, develops and coordinates story placement with appropriate outlets, editors, and influentials with proactive editorial pitching to local, regional and national media, as well as industry trade media. Patterson/Bach works with the various media on an ongoing basis to take advantage of any special/beneficial programming, promotional activities or feature stories pertinent to the City of Sebastian, and in particular, the airport's activities and events. We continually review and/or seek out additional public relations opportunities. Community Relations The agency can coordinate the detailed process of planning and executing public events, promotions and sponsorships. Patterson/Bach recommends creating a plan for each event, which details all steps needed to bring the event together in terms of objective, budget, theme, promotion, collateral materials, staffing and support. Internal Relations The agency will provide on -going direction for City employees by creating and maintaining secondary public relations operations that serve to foster and facilitate the goals and overall objective for their respective Departments and the City. For this component, the internal stakeholders will become ambassadors of the strategic plan. 50 RECOMMENDATIONS: Public Relations The agency will create all press documentation, including press releases, feature articles and case studies; prepare and distribute press kits and all press material to key media and influentials; and build strategies and manage community relations' campaigns. The agency will coordinate tours of the City Sebastian to prospective industry leaders, business owners, and other VIPs as well as produce publications and materials to be distributed to such groups as needed to reiterate the strategies outlined by this plan. Media Relations The agency will identify and communicate specific stories to targeted media to ensure continued press coverage and continued positive discussion about the features and benefits of the City of Sebastian. In the course of the continued barrage of press releases, interviews, and media kits, Patterson/Bach will further enhance the image conveyed by distilling important messages down to two or three things that the City would want people to readily remember. Patterson/Bach will develop and nurture relationships with the local media, including one- on-one meetings, if needed; to roll out a new service or event offered by the City. The agency will encourage the media to attend demonstrations, City functions, and community events. Also, Patterson/Bach will work with internal staff to include the strategic plan in daily activities that the local media can exploit and then take to the national level. Patterson/Bach will use creative approaches to hook City of Sebastian qualities and/or services to current industry trends. For example, strategic messages about the Sebastian Airport will be tailored to fit the overall landscape of the aviation industry, and media attention will be focused on highlighting those specific qualities. 51 Community Relations In the course of executing an orchestrated public relations campaign, the community will not only be a beneficiary but also a vital tool for attracting new business. Patterson/Bach realizes the need for large and small-scale events that will enhance the public's perception of the community, the media's perception of the community and potentially the new customers' perception. Many underestimate the importance of flawless event planning. Just as the public can be swayed to "buy into" a concept or idea, a poorly planned community event will serve exactly the opposite outcome. Patterson/Bach's experience in community relations will ensure that events, promotions, and sponsorships convey only top-notch, highly professional affairs that will lead to an increased demand for City sponsored events and anticipation for the next City function. Internal Relations Plans will introduce employees to more customer service oriented approaches when dealing with residents, businesses and prospective residents and businesses. Newly created brochures, annual reports, and other publications will reeducate long-time residents about the advantages and benefits of living and doing business in the City, and offer current Sebastian businesses the opportunity for joint public relations operations. 52 XVIII. Web Strategy Overall Web Recommendations One of the most important components -of the overall marketing plan will be the City's Web site. This will be the first impression business owners will have of your community and the opportunities you offer a relocating business. Organizations, including municipalities, are judged by their Web sites. Our recommendation is to re -design the existing Web site with updated technology, a user-friendly navigation, resourceful content and creative messaging/design that more accurately tells the story of the City of Sebastian. We use the following guidelines to determine when a Web site is in need of a makeover. We have found that all ten apply to www.citvofsebastian.com. The site constantly needs updating. It's overloaded and difficult to navigate. It seems cluttered with too many banners and links. It's not meeting expectations in terms of new and repeat visitors. There are potential new uses for the site. The City can benefit from new streamlined technology to improve efficiency and save time and money. The original site was built around the internal needs of the City instead of the needs of the user. You're launching a new product/service or campaign and expect increased traffic to your site. It has not been recently optimized for search engine placement with meta tags and strategic keyword placement. The look or design of the site is not consistent with your other marketing materials. 53 Online Marketing Search Engine Optimization Search engines are invaluable tools for reaching your target market and, therefore, should play a critical role in your long-term marketing and advertising strategies. Search engine optimization (SEO) is the process of submission, registration, positioning, monitoring and maintenance. It involves much more than submitting your Web site to search engines one time. SEO is done during the process of re -designing a Web site. This is because search engines base their rankings on many factors including content and technology. And, because they frequently change their submission requirements, it requires continual monitoring and submission. Search engine success depends upon the following mix: Before the site is launched: Creating relevant content. Strategically place keywords in content. Include META tags, which provide a title, description and keywords for search engines. Include SEO tags (HTML) to take advantage of the search engines' reliance of the contents of these tags. After the site is launched: Submit! Most traffic comes from the top ten to fifteen major search engines —each having different submission requirements. Search engines are increasingly relying on a new measurement called link popularity to help identify the most relevant web pages. On-going/monthly position monitoring and re -submission of the Web site to ensure "survival" in search engines' databases. M Overture/Bidding on Relevant Keywords OvertureTM generates high -quality search results by enabling advertisers to bid for placement based on relevant keywords. This allows businesses to reach potential customers at the very time they are searching for products and services. These results appear at the top of major search engines (Yahoo! MSN, Lycos, Altavista, Netscape) as sponsored matches. How It Works We bid on a relevant keyword for each click through. For example, the City may place a bid that it will pay .20 cents per click through for "business relocation." The higher the bid, the higher the site appears in the OvertureTM search results (the sponsor match). "Premium Listings," the top three OvertureTM results, provides exposure to 85% of all active Internet users by listing your site on leading search engines. Following is a list of top (relevant) keyword searches in June 2003: Keywords Number of Searches Business relocation 1,389 Sebastian Florida 3,353 Vero Beach 8,266 One item to note is that www.verobeach.com comes up as the sponsored match when using the keywords "Sebastian Florida." Pinellas County (www.siliconbay.org) is currently the sponsored match when using the keywords "Business Relocation Florida." 55 XIX. Creative Approach The creative approach will be developed after the completion of the focus group research. The creative will reinforce the appropriate themes outlined in the City of Sebastian Comprehensive Plan. 56 XX. Appendix 57 Appendix A. Airport Schematics Current Airfield Configuration Re -opening of Runway 9-27 Configuration Airport Layout Plan NORTH QUADRANT •,;^\\ `. ( Jw O \ d A NORTH �'.• \ •'•,` � ' ' C.INFIELD AREA ® ' \ EAST -WEST TAXIWAY0 SOUTH IlQFIELD / , FACII= LEGEND- 1 iAEROTRACE \ 2 SKY DIVE SEBASTIAN . - - 3 SEBASTIAN AFRO SERVICES 4 T VELOCITY AIRCRAFT 5 VELOCITY AIRCRAFP 6 , PRIVATE HANGAR 1_S AVIATION 8 _1 GOLF COURSE MAINTENANCE .9. GOLF COURSE.CLUE HOUSE. 10 ELECTRICAL VAULT RUNWAY DATA RU"AY 4-22 I LENGTH-4,024'. WIDTH-100' � EAST'. _ . QUADRANT.- RUNWAY 13-31 1 LENGTH WIDTIi=150' II WEST QUADRANT SEBASTIANGOLF CO MUNICIPAL. NI�AL�D'y910'I ref 2 ♦ V0. . . M SOUTH - s ,l p0, ��• QUADRANT �4 G�S� / • e uo• • � 0 / e } °tit .,•"` I SebuWanMunidpalAllport Clly al Sahnstlnn, •wnnwr+wnuo nee ■3y'� ONP:P ca a CURRENT AIRFIELD FACILITIES .n m°.. • ���=M� • EXHIBIT 23 Appendix S. St. Lucie County Location Incentives and Inducements ST. LUCIE COUNTY INCENTIVES AND INDUCEMENT St. Lucie County Economic Development Job Growth Investment Grant (JGIG) Program Ad Valorem Tax Incentive Sales Tax Exemption on New Equipment Sale Tax Exemption on Electricity Industrial Development Revenue Bonds (IDRBs) Workforce Development Indian River Community College Workforce Development Board One -Stop Career Centers Enterprise Zone City of Fort Pierce - Community Development Department Foreign Trade Zone # 218 St. Lucie County Airport - 1,078 acres Kings Highway Industrial Park - 102 acres St. Lucie West Commerce Park - 408 acres Utilities Fort Pierce Utilities Authority Florida Power & Light Co. St. Lucie West Utilities Port St. Lucie Utilities St. Lucie County Utilities South Florida Water Management District Industrial Parks Airport Industrial Park Fort Pierce Business Park Crossroads Park of Commerce Kings Highway Industrial Park 01 Port St. Lucie Industrial Park Reserve Commerce Centre St. Lucie Business Park St. Lucie West Commerce Park STATE OF FLORIDA INCEN TIVES AND INDUCEMENTS Incentives Tax Advantages Qualified Targeted Industry Tax Refund (QTI) Program Quick Response Training (QRT) Program Sales and Use Tax Exemptions High Impact Performance Incentive (HIPI) Silicon Technology Sales and Use Tax Refund Financial Incentives Enterprise Bond Program Capital Access Plus Program Enterprise Florida Capital Development Venture Capital Network Development Florida Development Finance Corporation (FDFC) Private Activity Bonds Certified Development Corporations Florida First Capital Finance Corporation Florida Export Finance Corporation Shared Foreign Sales Corporation Florida Economic Development Transportation Fund Environmental Permit Streamlining Minority Economic and Business Development - Black Business Investment Fund Community Development Corporation Support and Assistance Program Workforce Development Workforce Development Programming Quick Response Training Occupational Forecasting Conference Performance Based Incentive Funding (PBIF) Program Seaport Employment Training Grant Program University and Vocational Systems Florida Centers of Emphasis Florida Engineering Education Delivery System (FEEDS) Florida Occupation Information System (FLOIS) Job Service of Florida High Tech Research and Development Enterprise Florida Technology Development Corporation Innovation and Commercialization Centers Florida Manufacturing Technology Centers Space Related Technology Spaceport Florida Authority Southern Technology Applications Center (STAC) 3 ST. LUCIE COUNTY ECONONIIC DEVELOPMENT Job Growth Investment Grant (JGIG) Program St. Lucie County will assist companies with expansion or relocation expenses through its Job Growth Investment Grant. The County. Commission may issue grants ranging from $1,000 to as much as $2,000 per job for companies locating or expanding in the county. A minimum of 5 new jobs must be created at an average county wage. Property Tax (Ad Valorem) Exemption St. Lucie County offers ad valorem tax incentives to industry on improvements a business makes to its property, such as a new building, along with equipment it buys as part of relocating or expanding. The tax exemption is also available to existing businesses which fit the criteria for expansion. The exemption can be granted for up to ten years depending on the number of jobs created. A new business is defined as one that creates a least 10 manufacturing jobs or creates 25 jobs in a business (non -manufacturing) that has more than 50% of its sales outside the State of Florida. The category also covers a new Florida corporation with 50 or more full-time employees or any business located in an economically depressed area (Enterprise Zone). The City of Port St. Lucie also has a tax exemption program. This would exempt the millage collected by the City of Port St. Lucie by companies locating or expanding within the city limits and can be coupled with the county tax exemption. School taxes and other special district tax millage must still be paid. Sales Tax Exemption On New Equipment New manufacturing companies and existing manufacturers who establish a new product line or expand into a new facility at a different location, are considered a new manufacturer and are eligible for a total sales tax exemption on equipment purchases. Existing companies who cannot comply, as a new company would have to pay the first $50,000 in taxes, then be exempt on taxes due above the amount. WAGES Registry with the Florida Department of Labor is necessary. Sales Tax Exemption On Electricity Charges for electricity used directly and exclusively at a fixed location to operate machinery and equipment that is used to manufacture, process, compound, or produce items of tangible personal property for sale, or to operate pollution control equipment, recycling equipment, maintenance equipment, or monitoring or control equipment used in such operations, are exempt from sales tax under certain conditions. WAGES Registry with the Florida Department of Labor is necessary. Industrial Development Revenue Bonds (IDRBs) Industrial development revenue bonds are securities issued by St. Lucie County for the purpose of financing capital facilities for use by private business and industry. IDRBs are considered a special obligation of a local government and, providing the industrial development meets all qualifying conditions, the interest on the bonds are not subject to federal income tax. IDRB financing is often comparable to ordinary note and mortgage financing in that a private lender (the bond purchaser) agrees to lend funds to a private company by buying the bonds. The capital projects that the lender's funds are used to finance are mortgaged to secure repayment of the loan. WORKFORCE DEVELOPMENT ■ Indian River Community College On -Site Customized Training - IRCC works one on one with businesses to develop, implement and customize on site training programs tailored to fit the specific needs of your industry and your employees; including employee screening and pre -training; literacy in the workplace; technical training specialties; computer training specialties and manufacturing technologies training. ■ Workforce Development Board The Workforce Development Board of the Treasure Coast recently embarked on a five-year plan to implement the State of Florida's Workforce Investment Act. The vision of the Workforce Development Board of the Treasure Coast is to improve the community by providing a productive workforce and expanding economic opportunities the meet employers' and job seekers' needs and enhance the development of our region. The mission of the board is to build an integrated workforce development system for job seekers and employers by analyzing labor market needs. Effectively and efficiently coordinating the delivery of resources, programs and services, and evaluating the results for accountability. The Workforce Development Board is located at 9350 South U.S. 1, Village Green Business and Retail Center, Port St. Lucie, FL. 34952 (561-335-3030). ■ One Stop Career Center There are six One -Stop Career Centers strategically located throughout the Treasure Coast (four county) area. One Stop Centers assist with job information, job development, assisted job search, job listings, job referrals, job placement, employment counseling, job referrals, labor market information, mass recruiting services and employer marketing. n ENTERPRISE ZONE Fort Pierce offers incentives to companies that locate in its Enterprise Zone. Credits include: sales tax credit for job creation, corporate income tax credit for job creation, sales tax refund on building materials, sales tax refund for business equipment and machinery, and property tax credit. FOREIGN TRADE ZONE #218 (See flyer at the end of this document) Locations - St. Lucie International Airport -1,063 acres Kings Highway Industrial Park -102 acres St. Lucie West Commerce Park- 408 acres Crossroads Park of Commerce - 15 acres INIM(II),111-131 STATE OF LORIDA'S INCENTIVES AND INDUCEMENTS Existing, expanding and prospective businesses all benefit from the strong inventory of incentives and inducements, as well as the industry friendly environment that facilitates the development and maturation of enterprises supporting Florida's citizens and communities. The following summary of Florida's advantages, incentives and opportunities offers rock -solid reasons why Florida is rated as one of the world's premier locations for many of the world's best performing companies. TAX ADVANTAGES: Florida's generous tax structure provides businesses with a climate that promotes growth, specifically with: ❑ 5.5% corporate income tax rate for C-corporations ❑ First $5,000 of taxable income is exempt ❑ No corporate income tax on subchapter S-corporations or limited partnerships ❑ No property tax on business inventories ❑ No state personal income tax guaranteed by constitutional provision ❑ No property tax on goods -in -transit for up to 180 days ❑ No corporate franchise tax on capital stock ❑ No state -level property tax; property taxes are only assessed at the county level (Exemptions may be granted locally to new and expanding businesses for up to 10 years) ❑ No sales and use tax on goods manufactured or produced in the state for export outside the state ❑ No sales tax on purchases of raw materials incorporated in a final product for resale, including non -reusable containers or packaging ❑ No sales or use tax on boiler fuels ❑ No sales or use tax on co -generation of electricity Qualified Targeted Industry (QTI) Tax Refund Program This program provides an inducement for targeted industries to locate new facilities in Florida or to expand existing facilities. The program provides tax refunds of $3,000 per new job created. The incentive is increased to $6,000 per job if the company locates in a rural county or an Enterprise Zone. Higher awards are available to companies paying very high wages. To qualify for the QTI program a company must create at least 10 new jobs (or a 10% increase for expanding Florida companies), pay an average of at least 115% of area wages, have a significant positive impact on the community and have local support. If approved the applicant may receive refunds on the taxes it pays. This includes corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes. There is a cap of $5 million per single qualified applicant in all years, and not more than 25 percent of the total refund approved may be taken in any single fiscal year. 6 Quick Response Training Program (QRT) A customer driven training program designed as an inducement to secure new value added businesses to Florida as well as provide existing businesses the necessary training programs for expansion. The grant is available to design training programs that are not available through existing providers. Training services can be provided through Florida's community colleges, school districts, area vocational technical centers, state universities and, when approved licensed and certified post -secondary private institutions. Training is limited to 18 months or less. Training can be conducted at the business= own facility, at the training providers facility or at a combination of sites that meets the needs of the business. Jobs created must pay at least 115% of the industry's local area wage. Training grants are limited to $1,200 per job created. Sales and Use Tax Exemptions Sales and use tax exemptions are used for the purchase of machinery and equipment used by a new or expanding business to manufacture, produce, or process tangible personal property for sale. For an existing Florida manufacturer wanting to expand, a $50,000 cap on sales tax liability is imposed for the purchase of machinery and equipment that will increase production by at least 10 percent. Sales and use tax exemptions exist for the following categories: aircraft modification, maintenance and repair; commercial space activity; launch vehicles, payloads and fuel, and machinery and equipment for production of items used exclusively at Spaceport Florida; labor component of research and development expenditures. Also, sales and use tax exemptions are available for the entertainment industry (motion picture, television and recording production) and electricity used in the manufacturing process. Pollution control equipment is assessed at salvage value rather than fair market value for property taxes. Sale of farm equipment is taxed at only three percent. Foreign source dividends are deleted from the corporate income tax base. Certain international financial transactions are exempt from the documentary stamp tax. International bank transactions are not subject to the intangible personal property tax. High Impact Performance Incentive (HIPI) This incentive provides grants to pre -approved applicants in certain high -impact sectors currently defined silicon technology and transportation equipment manufacturing. Eligible businesses must create at least 100 new jobs and make a cumulative investment in the state of at least $100 million, and if a research and development facility, create at least 75 jobs and invest at least $75 million within a three year period. 10 Silicon Technology Sales and Use Tax Refund This incentive provides a refund on sales and use taxes paid by eligible silicon technology based industry on transactions involving manufacturing or research equipment. To receive the refund, Enterprise Florida and the Governor's Office of Tourism, Trade and Economic Development (OTTED) must first certify businesses. 11 FINANCIAL INCENTIVES Enterprise Bond Program The Enterprise Bond Program is a composite tax-exempt bond program providing a cost-effective means for qualified manufacturers, processors and non-profit organizations to access public and private bond markets, particularly for small fixed asset investment projects with limited access to those markets. The program offers low cost (as low as 30% below prime rate) fixed and variable rate financing through composite bond issues. Project cost range between $500,000 and $2 million. Capital Access Plus (CAP+) Program The CAP+ program is designed to increase the availability of financing for manufacturers and technology oriented research and development companies. Companies with fewer than 100 employees may apply. The program is designed to be flexible and loans may be used for many purposes, including inventory, equipment, fixed assets, working capital or lines of credit. A limit of $250,000 is set as the maximum amount eligible for enrollment in the program, however a lender may also utilize the program to enroll a portion of a larger loan. Enterprise Florida Capital Development Through referrals or direct program management Enterprise Florida Capital Development provides Florida's high growth businesses access to debt financing and venture capital resources to ensure that these businesses have access to capital to finance their growth. The goal is to develop Florida's financial infrastructure to eliminate gaps in the marketplace and to deliver products in a seamless fashion via partnerships with Florida's economic development organizations. Venture Capital Network Development Enterprise Florida Capital Development supports and participates in the activities of Florida's venture and entrepreneurship networking and support organizations, both public and private. Through regional venture networking organizations and the Florida Venture Finance Directory, entrepreneurs can have access to investors who are interested in investing in Florida companies. Florida Development Finance Corporation (FDFC) FDFC is the financing authority created by the State of Florida to issue enterprise bonds, and industrial revenue bonds, statewide. Private Activity Bonds Manufacturing Facility Bond Pool of at least $90 million is available specifically for financing manufacturing projects. First Florida Business Bond Allocation Pool reserves 20% of Florida's total annual allocation for large industrial projects that make a significant contribution to the Florida economy. 12 Certified Development Corporations Certified development corporations are regional companies that provide financing through Small Business Administration 504 loans, micro -lending programs and other programs. Florida First Capital Finance Corporation (FFCFC) FFCFC is a state supported Certified Development Corporation that provides eligible small businesses with long term fixed asset financing through the Small Business Administration 504 Loan program and their loan programs: Florida Recycling Loan Program and Florida Energy Loan Program. Florida Export Finance Corporation This program assists Florida companies with the export of goods and services. It provides information, technical and consulting assistance, as well as direct loans and loan guarantees. Shared Foreign Sales Corporation The Shared Foreign Sales Corporation aids smaller firms in taking advantage of federal and state tax exclusions developed as export incentives. Depending on a firm's profit margin, the income exemption can allow for a tax savings of 15 to 30 percent. Florida Economic Development Transportation Fund This fund provides up to $2 million for building/ improving public transportation facilities. Financing is provided to local governments on behalf of an eligible company considering expansion or location in the area. Environmental Permit Streamlining This inducement consolidates permit activity, provides a statewide definition of wetlands, and establishes regional mitigation areas and new rules to increase government efficiency. Minority Economic and Business Development The Minority Economic and Business Development inducement aims to strengthen the state's minority business and economic development effort. Florida BIack Business Investment Corporations meet the financing needs of new and expanding black business enterprises by helping them obtain loans. Community Development Corporation Support and Assistance Program The program provides funds to local communities, which in turn, make loans to businesses for establishment of new business, assistance to existing businesses, or to purchase equity interests in 13 business. 14 WORKFORCE DEVELOPMENT Workforce Development Programming Florida is a right to work state by constitutional provision - one of only seven states that require a public referendum before this provision can be changed. Florida provides strong workforce training and inducement programs to prepare its labor force for industry and support business growth. The Workforce Development Board (f.1ca. Jobs and Education Partnership) is responsible for coordinating and evaluation job training, adult education, vocational education, employment placement and other workforce programs administered by various state and local agencies. The board administers Florida's customized training program (QRT) and serves as Florida's Human Resource Investment Council, which is responsible for administering federal job training programs funded under the federal Job Training Partnership Act. Regional Workforce Development Boards operate under charters approved by the Workforce Development Board. The regional boards have primary responsibility for welfare -related job training and employer incentives. Quick Response Training Program provides rapid, effective start-up training tailored to benefit new or existing/ expanding companies that are creating new high -quality jobs and producing an exportable good or service. Enterprise Florida's Jobs and Education Partnership administer the program, in cooperation with a local training provider. The Occupational Forecasting Conference is conducted annually to identify high skills/ high wage occupations. The 1998 conference targeted jobs that demonstrate high growth and job openings and pay an average wage of $9 per hour. The conference also identified high growth jobs that pay an average wage of $7.50 for the welfare to work initiative. Performance Based Incentive Funding (PBIF) Program endeavors to stimulate high -wage employment by providing vocational education programs with fiscal rewards for achieving certain outcomes. PBIF allows post secondary vocational programs offered by Florida school districts or community colleges to earn fiscal rewards when students are trained and placed in targeted occupations identified by the Occupational Forecast Committee. Seaport Employment Training Grant Program funds job skills training program (instructors, equipment for training, etc.) that are intended to improve the movement of cargo or passengers in commerce and trade. 15 UNIVERSITY AND VOCATIONAL SYSTEMS: Florida offers one of the nation's leading state university systems with ten separate state universities and a dozen additional branch campuses and more than 70 private institutions contribute to the educational climate in Florida. Vocational -technical programs designed to meet specific industry requirements -lasers, robotics, simulation, computers, and others are offered at the state's 35 plus vocational -technical centers and 28 public community colleges. Florida Centers of Emphasis supply skilled employees for high technology industries through an industry based partnership program. This consortium of award -winning Centers of Electronic Emphasis and Centers of Automotive/ Autotronics Emphasis is conducted through selected vocational schools and community colleges. Florida Engineering Education Delivery Systems (FEEDS) serves as a technology -based link between university campuses and place -bound engineers, delivering graduate level engineering education through electronic media The following programs provide demographics, statistics, and other information regarding the state's available labor force. Florida Occupation Information Systems (FLOIS) provides computerized occupational supply and demand, and occupation characteristics data at state and local levels. Job Service of Florida assists employers in employee recruitment, screening and placement. 16 HIGH-TECH RESEARCH AND DEVELOPMENT Florida companies thrive in a progressive technology development and research environment - an atmosphere stimulated by the following programs: Enterprise Florida Technology Development Corporation aims to improve competitiveness of Florida's technology -driven industries, increase creation of technology -based companies, expand development and use of technology, and provide direct problem -solving assistance. Innovation and Commercialization Centers (ICCs) provide services and assistance designed to increase the rate at which technologies with commercial applications reach the marketplace and add value to the Florida economy. Consulting assistance is available through six regional ICC locations. (Examples of services: company start-up assistance; technology evaluation; market research; financial expertise/ advice; business plans; sales strategies; and networking events). Florida Manufacturing Technology Centers provide complete manufacturing extension services and direct assistance to Florida manufacturers on a statewide basis. (Examples of services: on -site problem solving of all types at your facility, plant layout, quality assurance, information systems, market development, environmental assistance, access to workforce training and capital services.) SPACE -RELATED TECHNOLOGY Spaceport Florida Authority promotes space -related education and research through statewide projects, ranging from telecommunications research at the Space Communications Technology Center (SCTC) to university involvement in Space Shuttle experimentation. Southern Technology Applications Center (STAG) provides on-line research and technology transfer services, specializing in transfer and commercialization of technology generated by NASA, other federal laboratories and university researchers. • Nine university -affiliated research parks in which firms may build facilities to access university resources and expertise including state of the art equipment, laboratories, libraries and facilities in specialized fields. • Over 370 specialized institutes and centers throughout the State University System available for research, service and instructional activities. • U.S. Patent Depository libraries in Fort Lauderdale, Tampa, Orlando and Miami. • A statewide technology infrastructure which includes: Institute for Bimolecular Science at the University of South Florida (USF), Solid and Hazardous Waste Management Center at University of Florida (UF), Center for Electro Optics and Lasers at University of Central Florida (UCF), and many others. • World -class research facilities including: FSU's National High Magnetic Field Laboratory, UF's National Institutes of Health Cancer Center, and FSU's Supercomputer Computations Research Institute. 17 TRANSPORTATION Florida companies are moving forward with access to an extensive transportation grid, which provides efficient and economical movement of goods and people. ■ Four major U.S. interstate highways provide direct access to major regional and national markets ■ Lower transportation rates result from back haul advantage ■ Thirteen freight railroads provide a variety of services, including piggyback facilities that are available statewide ■ Twenty commercial airports, 14 of which offer international service ■ Sixteen ports (14 deep -water and 2 inland barge) along Florida's coastline GleconumldwpfpatEVIncendvnAprd l.doc 18