Hutch Rising 2017-2021 & Reno Rising: Economic Development Notes

Hutch Rising 2017-2021: A Look Back

Greater Hutch generated tremendous momentum in the last four years.
Early goals included filling vacant industrial and commercial properties.
Examples of occupied vacant buildings:
- 30th and Plum
- Former Eaton building
- Former Consolidated Manufacturing site
- Former Bett’s Bakery
These properties now create jobs and opportunity for the community.
Greater Hutch collaborated with the City, County, and State to finalize these projects.
Future economic development depends on new buildings and shovel-ready sites.
Reno Rising will address this need to ensure continued momentum.

Economic Development Advisory Council (EDAC)

Aids in oversight and direction of economic development programs for the Hutchinson/Reno County Chamber of Commerce.
Ensures appropriate oversight and accountability for economic development activities on behalf of investors and community stakeholders.
Members include representatives from various sectors such as:
- City of Hutchinson
- Kansas Ethanol, LLC/Kansas Protein Foods
- Fee Insurance
- Hutchinson Community College
- DCI
- Hutchinson Regional Medical Center
- First National Bank of Hutchinson
- APAC - Kansas Inc., Shears Division
- Hutchinson Clinic
- Reno County
- Papa John’s/Pryor Investments
- Dillons/Kroger
- Prairie Bank of Kansas
- American Packaging Corporation
- Disability Supports of the Great Plains
- Edward Jones
- Genzada Pharmaceuticals/ GeoChemicals,LLC
- Benefit Management

Key Economic Development Strategies (2017-2021)

Four major priorities shaped by input to raise the bar on economic growth in Reno County:
1. Business Retention & Expansion
2. Business Recruitment & Attraction
3. Enhanced Community Development Capacity
4. Workforce Development
The Greater Hutch Economic Development Partnership is a collaborative county-wide effort.
Created in 2016 with funding from Hutch Rising investors and public sector contributors (Reno County, City of Hutchinson, City of South Hutchinson).
Greater Hutch is the central collaborative organization that proactively coordinates and drives economic development.
Even amid a global pandemic, the Greater Hutch team supported local businesses and attracted new investment.

Expansion & Recruitment Results

Vacant buildings are seeing new life due to aggressive business recruitment, retention, and expansion efforts.
Continued enhancements to the economic development marketing strategy resulted in:
- 111 new leads
- 101 new projects
- 341 new jobs announced to date
- $20.2$ million in local annual payroll growth
- $107.5$ million in new commercial building permits
- $33$ million invested in new Greater Hutch projects

Recent Project Wins

KMS, Inc.
- Located in the former Eaton building

Industry Growth Strategies

In 2017, Greater Hutch embarked on a targeted industry analysis to refine its marketing strategy.
Evaluation included analysis of industry clusters, local interviews, and economic research.
Local targets identified:
- Advanced manufacturing
- Healthcare
- Technology
- Retail and destination tourism
- Entrepreneurship
Specific sub-sectors identified within each target:
- Food processing
- Value-added ag and equipment manufacturing
- Warehousing and distribution
- Aerospace
- Technology
- Customer service
- Specialty healthcare services
A retail gap analysis was conducted to attract specialty retail to complement the existing regional trade pull area.
Industry groups were convened to engage the existing business community in growth strategies.
A Reno County Ag-Promotion Task Force was established to focus on agricultural-related business development.
Reno County is part of a ten-county regional marketing partnership led by the Greater Wichita Partnership.
Increased requests for proposals for large sites and buildings within target areas due to regional partnership, investment in Team Kansas, and aggressive recruitment approach at the Kansas Department of Commerce.

Target Industries

Advanced Manufacturing
- Machining & equipment manufacturing
- Manufacturing materials
Agriculture
- Value-added products
- Crop & animal production
Aerospace
- Maintenance & repair
- Specialty services
Health Services
- Telemedicine
Technology
- Software & IT services
- Back office & customer service
Energy & Mining
- Renewable energy
- Mining, oil, & gas production
Transportation & Logistics
- Transportation
- Warehousing & distribution
Tourism & Destination Retail
- Specialty retail
- Destination leisure
Reno County ranked 11th most diversified county economy in the United States by Janet Ady - Ady Advantage.

Team Kansas

A group of private business leaders, economic development professionals, and state officials working to attract companies, investment, and jobs to Kansas.
Greater Hutch partners with Team Kansas and the Kansas Department of Commerce.
Annual pledge allows Greater Hutch to participate in Kansas marketing events.
In 2020, Kansas broke records for new capital investments and broke into the top ten state rankings in SITE SELECTION.

Framework for Growth

Kansas Department of Commerce is the lead agency for economic development in Kansas.
In 2020, Kansas released a comprehensive economic development strategy called the Framework for Growth.
Target sectors:
- Advanced Manufacturing
- Aerospace
- Distribution, Logistics and Transportation
- Food and Agriculture
- Professional and Technical Services
Strategic Pillars:
- Talent
- Innovation
- Community Assets
- Policy

Workforce Initiatives

Developing the workforce of tomorrow is critical to the economic vitality of businesses and the region.
Increased collaboration with community business, industry, and education partners to develop new strategies and initiatives to grow the talent pipeline.
- Manufacturing Day School Tours
- Intern Hutch program
- Promoting Employment Opportunities via Job Portal on GreaterHutch.com

Developing a Talent Pipeline

Career & Technical Education Signing Day
The inaugural Sign Day event at the Hutchinson Career and Technical Education Academy honored students entering a technical field.
F.A.S.T. Track Program (Future Apprenticeship Success Training)

Talent Recruitment

In 2017, Greater Hutch launched a Backstage Pass program to support talent recruitment efforts.
Engages local partners, Greater Hutch volunteers and staff to provide tours to key recruitment prospects.

Labor Trends (Reno County Wage Data)

Employment estimates released by the Kansas Department of Labor in May 2021 showed an estimated 28,667 people employed in the county.
Up more than 400 people from March 2021 and 1,079 more than April 2020.
The county’s unemployment rate of 3.2 percent for April 2021 compared to 3.8 percent in March and 10.2 percent in April 2020.
Total Employed:
- 2017: 27,020
- 2018: 25,870
- 2019: 27,900
- 2020: 28,610
- 2021: 28,667
Annual Median Wage:
- 2017: $29,449$
- 2018: $30,897$
- 2019: $32,829$
- 2020: $33,310$
Hourly Median Wage:
- 2017: $14.16$
- 2018: $14.85$
- 2019: $15.78$
- 2020: $16.01$
Reno County Unemployment Rate:
- Unemployment rate of 3.2 percent in April 2021.
- Last time it was lower was in March 2020, when it dipped to 2.8 percent.

Strategic Partnerships

Local partnerships play an important role in the delivery of workforce and economic development activities.
Greater Hutch serves as a hub for collaboration and communications between the public and private sectors.
Addressing community capacity building issues such as housing, healthy neighborhoods, workforce readiness, and infrastructure.
- Hutchinson Healthy Neighborhoods Initiative
- Boys & Girls Clubs of Hutchinson
- Expanding Rural Broadband in Reno County

Entrepreneurship

In 2017, conversations began about creating a more comprehensive entrepreneurial ecosystem, which lead to StartUp Hutch.

Developing Destination Retail

In 2017, Greater Hutch contracted with Catalyst Commercial to develop a plan to help fill strategic gaps in destination retail.
Catalyst Recommendations & Emerging Targets:
- Capture visitor thru put to capitalize on existing tourists
- Enhance national retail concepts to capture the retail trade area and mitigate leakage to larger cities
- Carry out the comprehensive plan for improvements to entrances and commercial corridors
- Develop a program to curate and grow retail and restaurants with a focus on critical mass in downtown
- Improve retail district walkability, signage, and pedestrian experience
- Leverage a health and wellness strategy to attract young professionals and active adults
- Strengthen mixed uses in downtown and commercial districts with attention to arts and events, housing, and creating a feel of urban vibrancy

Reno County Sales Tax Trends

Kansas Main Street Incentive Without Walls Loan Fund
The Incentive Without Walls Revolving Loan Fund was established in coordination with the Kansas Main Street program.
Since 2019, the Hutch Chamber has been managing a portfolio of $200,000$ and 19 outstanding loans.
In 2020, a total of $55,000$ was loaned to seven downtown businesses.
Sales tax receipts continue at a record pace for both Hutchinson & Reno County in 2021.
Sales Tax (Jan-May):
- 2017: $14,707,099$
- 2018: $14,938,619$
- 2019: $15,319,267$
- 2020: $15,826,207$
- 2021: $7,016,665$

Commercial Revitalization

Greater Hutch embraces revitalization of existing buildings as a responsible reuse aspect of our development strategy.
A deliberate effort to create live/work/play districts, where mixed-use developments including office, professional services, retail, healthcare, and restaurants, combined with upper floor living, bring foot traffic back which then improves the overall vibrancy of a community.

Leveraging Resources

Greater Hutch staff help local businesses and new prospects identify available resources to assist in a variety of projects.
Greater Hutch partners with agencies including the Kansas Department of Commerce, Network Kansas, South Central Kansas Economic Development District, StartUp Hutch, Hutchinson Community Foundation, and other federal, state, and local agencies to provide information about a variety of economic development tools such as:
- High Performance Incentive Program
- Promoting Employment Across Kansas
- Kansas Industrial Training/Re-Training
- Industrial Revenue Bonds
- Economic Development Exemptions
- State Trade Expansion Program & KITSAP
- City & County Job Creation Incentives
- Kansas Capital Multiplier Loan Fund
- Incentives Without Walls Revolving Loan Fund
- Reno County E-Community Revolving Loan Fund
- Opportunity Zones
- Community Development Block Grant
- Historic Tax Credits
- Neighborhood Revitalization Program
Commercial Building Permit Valuations:
- 2017 - $40.7$ million
- 2018 - $14.9$ million
- 2019 - $29.8$ million
- 2020 - $18.2$ million
- 2021 - $3.9$ million (YTD April)

Hutch Rising By The Numbers

340+ jobs created
$20.2$ million in new annual payroll
111 RFPs submitted
64 site visits
101 total projects
$1.57$ million campaign dollars raised
Over $33$ million dollars invested in Greater Hutch projects
37 Backstage Pass visits
5-year Public/Private Partnership Funding: 29% Public Sector, 71% Private Sector
$1.63$ million campaign dollars pledged (includes in-kind pledges)
$107.5$ million in new commercial building permits

Looking Ahead

Economic development program will continue to focus on:
- Business retention and expansion
- Business recruitment and attraction
- Enhanced community development capacity
- Workforce development
Workforce Development & Talent Attraction
Housing
Childcare & Early Childhood
Product Development
Revitalization
Competitive Resources

COVID-19 Response

The community rallied together and quickly implemented new programs and initiatives to respond to the issues created by the pandemic.
- Reno County Economic Recovery Task Force (RCERT)
- Rally Reno