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Acceleration Wins Kansas City Small Business Monthly
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Acceleration was just named a winner in Kansas
City Small Business Monthly 2008
25 Under 25® Awards, which recognize 25 outstanding
Kansas City area businesses with fewer than 25
employees.
Winners competed on several
key performance criteria: financial stability; ability
to overcome obstacles/adversity/challenges; community
involvement/service; distinguishing or defining
characteristics/qualities; and company vision.
The LSEDC’s Entrepreneur postcard campaign featured
Acceleration in our showcase of up-and-coming businesses
and their leaders in Lee’s Summit. |
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Small businesses employing
fewer than 25 people are the backbone of the U.S.
economy. This segment of business comprises the largest
number of companies both locally and nationally, with
roughly 83 percent of the Kansas City area and 86
percent of businesses nationwide employing 19 or fewer
employees.
Stay tuned for more on
Acceleration, as events are scheduled from February
through March to honor the finalists. Honorees will be
profiled in a special 25 Under 25® supplement in an
upcoming issue of Kansas City Small Business Monthly,
and they will be invited to an awards dinner and gala on
March 8.
Congratulation to CEO Keith Koehler and
his team. We are proud to have helped you to locate and
grow in Lee’s Summit.
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January Quarterly Investor Meeting:
Topic: Outlook In a Time of Great Uncertainty |
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Kick off the New Year at
LSEDC’s Quarterly Investor Lunch Meeting on January
9, from 11:45 a.m. to 1:15 p.m. at Truman Medical
Center Lakewood by hearing
some plain talk about the economy. Dr. Craig Hakkio,
Special Advisor on Economic Development at the
Federal Reserve Bank of Kansas City, will
discuss in layman’s terms what is going on with the
economy. Come with questions. Please RSVP to
Shannan
Cunniffe ASAP, as we expect this to be a
sell-out luncheon.
Craig’s topic: Prospects
for 2008 and Beyond. Craig will discuss the outlook
for 2008 in a time of great uncertainty. What are
the impacts of housing and financial turmoil? What
will be the implications for monetary policy?
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In
his role as
Special Advisor on Economic Policy at the Federal
Reserve Bank of Kansas City, Dr. Hakkio conducts
research on international macroeconomic policy and
monetary policy. Craig has written a number of
articles in professional journals and conference
proceedings. Dr. Hakkio holds an A.B. degree from
Kenyon College, and M.S. and Ph.D. degrees in
economics from the University of Chicago.
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Date
Change: April Quarterly Investor Meeting
Topic: Developers' Showcase |
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Please note that the date for our
April Quarterly Investor Meeting has changed from
April 2 to Wednesday, April 9 to accommodate the
Chamber’s annual Legislative Day trip to Jefferson
City, which will be on April 2. The location for
LSEDC’s Quarterly Investor meeting has yet to be
determined, but will be communicated in a future
e-mail. The topic of our April 9 meeting:
Developer’s Showcase. We will invite area developers
to brief attendees on the activities going on in
their respective developments.
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Prospect
Activity |
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As
you know, economic development prospect information is kept
confidential, but we can report on trends. We are seeing
activity in all the areas below. Much of it is brought to us
from the national marketing efforts of the
Kansas City Area Development Council (KCADC).
However, as in any
sales experience, you have to kiss a lot of frogs. The rule
of thumb in economic development is that for every 100 leads
you have, four become real projects and you might land one.
Trends include:
1. Data
Centers: Users of massive amounts of electricity, this
high-assessed-value, relatively low employment but well
paying sector is highly desirable but very competitive.
Racks of computers replace people.
2. Customer
Service Call Centers: Requiring 5-1 or more parking
ratios, some mass transit and existing buildings, these
requirements favor communities with an inventory of
buildings and reliable electricity, mixed-use locations so
that 24/7 employees can get services and proximity to proven
existing call center locations since there is considerable
turnover in these firms.
3. Distribution
Centers: NAFTA, Interstate 35 North and South, a nexus
of railroads, and central U.S. location are combining to
make metro area and its rural neighbors very attractive to
these land-intensive, relatively low-employment per square
foot facilities. The movement of commoditized manufactured
projects from lower cost Asian countries to the U.S. - where
the highest concentration of consumer remains - is driving
much larger logistics projects to consider the Kansas City
market as product is moved from the West Coast of the U.S.
east to the population centers in the eastern part of the
country.
4. Manufacturing:
Despite
globalization and lower cost offshore facilities, firms with
highly-mechanized, high-value-added intellectual content
manufacturing processes are expanding or searching for new
sites. In addition, small niche or boutique manufacturers
are doing well as their products are not commodities but
value added components to assembled products. Finally,
manufacturers of high-bulk low-margin paper or plastic
products must stay near their customers to offset high
transportation costs. Additionally, due to productivity
gains, these specialized manufacturing projects create fewer
jobs, but they tend to be better paying and more lasting.
5.
Retail:
A
major leg of the economy is retail trade. The consumer is
leading the way. Lee’s Summit is fortunate to be attracting
retail trade to stop the leakage to other locations to the
north and west. If our economic studies are accurate, there
still are about 500,000 more square feet of retail demand
for our Southeastern Jackson County trade area. |
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Lee's
Summit's Brain Drain: Will Our Industrial Revival Stem the
Loss? |
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Each
morning rush hour, about 70 percent of Lee’s
Summit’s residents leave their home and go to work
in another community. The numbers are sobering but
not uncommon for suburbs. Keeping residents working
where they live is an economic development
imperative. A combination of factors contributes to
this brain drain (see next article). Sometimes, it
is as simple as Lee’s Summit having an inventory of
sites and buildings meeting current or future
clients’ specifications. We are fortunate that
northern Lee’s Summit is going through a resurgence
of providing office and industrial sites and
buildings. November’s Kansas City Business
Journal article "Lee’s
Summit Manufactures More Industrial Development"
profiled Lee’s Summit’s industrial resurgence led by
Steve Rich of
Townsend Capital, which manages the Summit
Technology Campus;
Jay
Burchfield of LBC Development, who is renovating the
Lakewood Business Technology Park on I 470; and Mike
Atcheson of
CEAH
realtors, who develops office, medical and
industrial properties. Nevertheless, the bottom line
is that 33,245 residents are employed, but only 25
percent of them live and work in Lee’s
Summit. The other 75 percent work somewhere else!
Like all suburbs, we need to strive to make sure our
residents can live, play, learn and WORK in Lee’s
Summit. |
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Developing Compelling Communities |
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During my recent
International Economic Development
Council Annual Conference,
Mark Lautman made a presentation about a new community he
represents as Economic Development Director.
Mesa
del Sol is a Forest City
Enterprises master planned community in Albuquerque, New
Mexico. A 20-square mile infill project with 100,000
residents at build out, it will contain 38,000 homes, 20
million square feet of commercial development, and four high
schools. The unique factor to this community will be that it
will contain 50,000 jobs! This means it will import workers
everyday! The guiding development principles for this
community are relevant to any community which seeks to
attract and retain investment. Mark and Forest City, one of
the nation’s largest developers, are focusing on strategies
for attracting the creative class.
They regard this workforce’s value system characteristics
as: "free agent" status, requiring lifelong education, a
third place connection with community and culture. They
value diversity and tolerance; green equals good for the
planet; healthy lifestyle; life, balance and time
management.
Accordingly, as they develop their community and market it,
they have coined the term "Compelling Communities." Based on
their workforce goals of 50,000 employees, the qualities
they sell and benchmark for are listed below. Compelling
communities qualities include:
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Diversity
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Sustainability
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Interesting, History, Art
and Culture
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Affordability, Investment
Value
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Convenience, Proximity and
Balance
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Health , Recreation and
Sports
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Entertainment, Hospitality
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Nexus of Innovation and
Productivity
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Connection, Collaboration ,
Community
Knowing that Forest Cities and Mark have a
national track record of success, analyzing Lee’s Summit’s
degree of Compelling Qualities might be a good benchmarking
exercise. How do you think we rate? How do we compare with
other communities? What is being done locally and regionally
to make our community and the region a "compelling
community?" What are others doing? |
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Ten
Trends of the Extreme Future |
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California, for better or worse, tends to be in the front of
emerging global and national issues. A recent article from
the
California Association for Local
Economic Development outlined ten trends that will identify strategic challenges
for individuals and businesses. They are:
1. Fueling
the Future:
The energy
crisis, costs, the post oil future and the future of energy
alternatives will be an essential factor in every business
decision.
2.
The
Innovation Economy:
The central driver for future commerce will be innovation
industries. Think nano-bio-neuro-info.
3. Talent
War:
There will be more jobs than people to fill them. Look for
incentives to keep and recruit them.
4. Longevity
Medicine:
The human enhancement marketplace offering new organs,
memories, limbs, skin, and lives will translate into the
largest market of the future.
5. Weird
Science:
Weird new science will change every aspect of our lives,
culture and economy, leading to new jobs, new products, and
new options.
6.
Securing
the Future:
A new risk landscape is emerging, from war to terrorists to
hackers which will pose new challenges for individuals,
governments and businesses.
7.
The Future
of Globalization:
Free trade, open markets, and improved quality of life will
define the 21st Century.
8.
The Future
of Climate Change:
New business opportunities will emerge in response to
warming, pollution and threats to biodiversity.
9.
The Future
of the Individual:
The near future will provide opportunities for personal
wealth creation that will underlie all other trends. We will
see a struggle to balance individual freedom, privacy and
security.
10.
The Future of America and China:
How the destiny of these two great nations - from capitalism
to democracy, to innovation and security - will shape the
future. |
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Southern Gateway Business Alliance |
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For the last several months,
LSEDC has been meeting with owners and executives of
manufacturing and distribution businesses located south of
HWY 50 to staff their evolving agenda on items such as
highway improvements, growth trends, and employment law.
This informal group of 15 businesses which employ over 1,500
people have discussed transportation, workforce, state tax
climate, EEO and Employment law. On various occasions, they
have met with the Mayor, their district City Council
members, State Senator Matt Bartle, and several city
department heads on various issues.
The group’s volunteer chairman
is Chuck Koester, President & CEO of
Plastic Enterprises.
Companies currently involved include
Adesa, American Food
Service, Beacon Press,
Billy Goat Industries,
CK
Enterprises, GE-BHA Technologies,
Geiger Ready Mix, Issco,
JCI Industries, Kansas City Movers,
Metcraft Industries,
Plastic Enterprises,
R&D Tool & Engineering,
Toys R’ Us,
Hi Tech Industrial, TW Steel, City Scrap Metal, and
Venture Industrial Products.
A fundamental economic development
program activity is existing business retention and
expansion. We need to take care of the businesses we have
before we market the area to new industry. In fact, our
existing businesses often become our best sales force when
talking with prospective new companies. Click
HERE
to read our 2007 VIP Business Retention and Expansion
Report. The report summarizes the pulse of over 60 local
companies’ opinions on their and the community operating
conditions.
We are pleased to staff the meetings of our
existing manufacturers and distributors and are beginning
preparations for the first meeting of the businesses in the
northern part of Lee’s Summit. It is gratifying to see how
these educational and networking sessions are promoting
cooperative efforts, peer dialogues and increasing community
awareness about Lee’s Summit’s growth and development. |
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Congratulations Shannan Cunniffe |
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There are some changes going on
in the office. Shannan, our Office Manager, our investors’
e-mail pen pal and the lady who usually answers the phone
when you call, is expecting. Early next year, we will be
hiring a part time person whom Shannan will train as she
prepares for maternity leave. She and her husband Tom are
excited and ready for these new challenges. We are looking
for part-time staffing to insure that our levels of investor
and client service remain high during and after her
maternity leave. PS: Shannan is our grammarian and proof
reader, so on the days she is out, please accept our
apologies if we make some errors. |
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What's On Your Mind? |
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Each
quarter we will solicit our investors for questions
about business, city activities, development news, etc.
We will then seek answers from appropriate officials and
publish their answers in the e-newsletter.
Among the many questions posed this quarter, we have
selected Bruce Hattig’s question: Bruce is a Location
Manager with
Bartlett and West Engineers.
Bartlett & West is a multi-disciplinary engineering and
surveying firm providing infrastructure solutions to
government, developers and industry.
At
any time, feel free to e-mail us suggested questions for
our next e newsletter which will be published in March.
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Question: There are so many road projects going on in
Lee’s Summit, could you list their scheduled completion
dates in one place.
Answer: Thanks to Chuck Owsley, Lee’s Summit’s Director
of Public Works, please find the response below:
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Strother Road Interchange:
We hope to begin construction in the
fall of 2008, and anticipate the interchange will be
open to traffic by the end of 2010 or early in 2011.
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Pryor Road
Interchange at I -470:
Construction began on the interchange
this summer (2007), and we hope to have it open
around the Fall of 2008.
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Blue Parkway
Interchange (east and west bound):
The Blue Parkway Interchange with
I-470 and ramps connecting it to the Pryor Road
interchange should be open to traffic in the fall of
2009, or about a year after the Pryor Road
Interchange.
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Widening of 150
Highway:
The widening of 150 Highway starts
near US 71 highway in Grandview. Next will be the
Kansas City, Missouri section, then finally the
Lee’s Summit, Missouri segment. Construction in
Lee’s Summit should begin early in 2009 and should
be complete around the end of 2010.
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Construction of the
Blackwell Road Interchange:
We plan to break ground on the
Blackwell Interchange in 2009 and have it open to
traffic by the end of 2010.
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Lee’s Summit Road
Improvements:
We are currently discussing a joint
project with Kansas City to improve Lee’s Summit
Road from Colbern Road North to Gregory/Little Blue.
We hope to break ground in the second half of 2012
and have it open to traffic by the end of 2014.
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Keeping Our Troops in the Air - Latest LSEDC Postcard |
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This month
our Entrepreneur Postcard Campaign features brothers
Chris and Brian Lincoln’s Lee’s Summit Based
Ultrax Aerospace Inc.
Ultrax Aerospace’s 30 employees keep aircrafts safe
and flight-worthy by manufacturing aircraft
component test equipment. 0ur troops use their test
equipment to check flight control systems on
Blackhawk helicopters and F-15 fighter jets, for
example. They are proud to serve our troops while
providing quality jobs for their highly-trained and
skilled associates.
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Investor Focus |
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Brotherhood Bank Marks Another First in Lee's Summit |
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Each
quarter we highlight an LSEDC Investor company in our E-Newsletter. If
you would like to be featured, attend our Quarterly Investor Meeting and
drop your business card in the box. If your card is drawn, you will be
featured in an upcoming e-newsletter.
This quarter’s featured LSEDC company
is
Brotherhood Bank & Trust.
Jim Phillips, Vice President, represents Brotherhood Bank in
the LSEDC. We welcome him to our community and are pleased
to share his answers to a few of our questions. As of
November 19, Brotherhood Bank opened its first location not
just in Lee’s Summit, but in all of Missouri at 708 SE Third
Street in Lee’s Summit.
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Tell us a bit about Brotherhood Bank
As of November 19,
Brotherhood Bank will open its first location not
just in Lee’s Summit but in all of Missouri. The
bank’s history shows its humble beginnings. In the
early 1920s, Joseph A. Franklin, President of the
International Brotherhood of Boilermakers, conceived
the idea of organizing a friendly bank - for
everyone from the most humble laborer to the
wealthiest tradesman. In an age where the banking
industry has seen rampant consolidation and
acquisition, Brotherhood Bank & Trust is proud to be
an independent community bank. The ownership and
relationship with the International Brotherhood of
Boilermakers continues to be an asset to both the
bank and its customers.
Why did you join the
LSEDC?
I am a resident of
Lee’s Summit and truly enjoy being a part of LSEDC.
I enjoy receiving information on what is going on in
Lee’s Summit. Also, I think it is somewhat unique in
how well the private business community, schools,
and city work together in Lee’s Summit. I find that
the community is a great place to do business and
raise a family. So really, I joined (through
Brotherhood Bank & Trust) for those reasons.
What have you gained
from your membership in the organization?
I have gained some
relationships with business leaders in Lee’s Summit
and look to cultivate future relationships with
business and personal financial needs through
Brotherhood Bank & Trust. I have also gained some
relationships with other bankers in Lee’s Summit as
I serve on the Kansas City Chapter of RMA as
President.
What business projects
and/or community activities are you involved in in
Lee's Summit that would be of interest to our
readers?
Brotherhood Bank & Trust opened is
first Missouri location at 708 SE Third Street in
Lee’s Summit on November 19, 2007.
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