WANTED: DEVELOPMENT
Western Real Estate Business recently spoke with economic development agencies in several western cities to find out what’s happening in regards to current and future projects.
Lara Rauba

KAPOLEI, HAWAII “The city of Kapolei is attracting a diverse array of businesses, including commercial and light industrial; national and regional retail stores; healthcare providers; financial institutions; telecommunications companies; educational institutions; and visitor destinations,” says Donna Goth of The Estate of James Campbell, a private investor with office, retail and industrial properties in Hawaii. Kapolei, Hawaii, with a population of 72,847, is located on the western coast of Oahu. Kapolei, which was developed by the James Campbell Estate, is located on the western coast of Oahu, about 25 minutes from the Honolulu International Airport. The city currently has a population of approximately 72,847 people. One of Kapolei’s strong points in regards to economic development is its telecommunications infrastructure. The city has a state-of-the-art teleport with trans-Pacific fiber optic and satellite earth station links from Hawaii to the United States mainland, as well as to places such as Asia and India. The city also offers several economic incentives, including the James Campbell Industrial Park. The park is a designated foreign trade zone (FTZ). “The FTZ lies outside U.S. Customs territory and is free of U.S. import restrictions, and most state and local use and excise taxes,” says Goth. Kapolei is also a designated Oahu enterprise zone. “This means eligible businesses can take advantage of state excise tax exemptions, income tax credits and even local tax incentives in some cases for the first 7 years of operation,” says Goth. The 11.6-acre Honolulu Advertiser (Gannett Pacific Corp.) Printing and Distribution facility is currently one of the largest developments in Kapolei. The 160,000-square-foot facility, which is being developed by Gannett Hawaii Publishing LLC, will be adjacent to the Kapolei Business Park. The $82 million project is scheduled to be completed in summer 2004. Also under construction is a 150,000-square-foot The Home Depot store at Kapolei Parkway and Kalaeloa Boulevard. Home Depot U.S.A. Inc. is developing the building, which will open in early 2004. In order to bring new projects to Kapolei, says Goth, The Estate of James Campbell works closely with commercial and residential developers to attract a variety of business and residential projects. “Kapolei was engineered to be a 21st century city, wired for global commerce,” says Goth. “The intent is to build a complete city where people can live, work and play. Kapolei will continue to carry out this vision by attracting quality businesses to the area while growing the population and developing a viable and dynamic community.”

PRESCOTT VALLEY, ARIZONA “Prescott Valley is the gateway to the Tri-City region,” says Gary Marks, executive director of the Prescott Valley Economic Development Foundation. The city, with a population of more than 30,000, is one of the fastest growing communities in Arizona. Prescott Valley is located 87 miles north of Phoenix, and along with Prescott and Chino Hills, forms the booming Tri-City area. The city of Prescott Valley is a part of the Tri-City area, which has a combined population of more than 114,000. Prescott Valley Town Center is a 500-plus acre project, being developed by Fain Signature Group, that will serve as the community’s downtown. The development, built along a pedestrian-friendly main street, includes a 39-acre entertainment center with a 14-screen Harkin’s Cineplex; a government center with a town hall and civic center; retail space with tenants such as Albertsons, Safeway and Pizza Hut; office space; a hospital; medical office space; and housing including apartments, townhomes and senior living. “The Yavapai Regional Medical Center has broken ground, followed by four new housing developments with more than 10,000 new homes over the next 6 to 10 years,” says Marks. In addition, he adds, there will be more than $20 million in new road projects and 100 acres of commercial property development in the area. One of the reasons that Prescott Valley Town Center is successful is because of Prescott Valley’s location in Arizona. The Tri-City area has a combined population of more than 114,000 and Prescott Valley is close to Highway 69 and Interstate 17, which links the community to Phoenix. The 200-acre Big Sky Business Park is one project being developed in Prescott Valley because of the city’s proximity to several modes of transportation. To attract companies to Prescott Valley, says Marks, “we attend national tradeshows, use targeted direct mail, advertise in national site selection publications and prospect visits. The town of Prescott Valley also has an economic development manager who works directly with retail and commercial developments.” In the future, Prescott Valley will continue to attract a range of businesses, including quality commercial and retail companies, as well as value added manufacturing and services. “We aim to attract and build a diverse local economy while maintaining the quality of life for our citizens,” says Marks.

TACOMA, WASHINGTON Transportation and technology serve as major catalysts for growth in Tacoma. The city currently has a population of 193,600, with new businesses relocating to the area frequently. In order to smooth the fast-paced growth of the region, the city is focusing on improving its technology and transportation systems. Some of these projects include the Narrow’s Bridge project, Thea Foss Waterway clean-up, Tacoma Link Light Rail system, and the Greater Tacoma Convention and Trade Center development. Projects currently underway in Tacoma, Washington, include the Narrow’s Bridge Project. Narrow’s Bridge links the Key Peninsula to Tacoma and Interstate 5. Photo courtesy of Sonja Hall “Over the past several years, the City of Tacoma and the private sector have invested $300 million in Tacoma’s telecommunications infrastructure,” says Sonja Hall, director at the Media Center for Tacoma-Pierce County and communications manager for Tacoma-Pierce County Chamber. “Nearly every city block is covered with high-speed fiber optics and cable.” The emphasis on technology is evident in the city’s slogan, ‘Tacoma #1 Wired City.’ “The campaign highlights the attractive business climate, affordable office costs, reduced commute time, fast building permits and new business developments,” says Hall. In addition to its technology campaign, Tacoma is also focused on transportation projects. Narrow’s Bridge is a new suspension bridge being built parallel to the existing bridge that links Pierce County’s Key Peninsula to Tacoma and Interstate 5. This will ease congestion in the area and facilitate new growth. “Gig Harbor [located on Key Peninsula] businesses and residents are already seeing the impact of the new bridge,” says Hall. “A new hospital is planned for 2007 and the real estate market is seeing an influx of property investors.” The clean-up of the Thea Foss Waterway is another project currently underway in Tacoma that will ease the way for new business development. Thea Foss Waterway is a 1.5-mile inlet off Commencement Bay that runs along downtown Tacoma’s shoreline. “More than 100 years ago, the waterway was developed as a bustling industrial area and was the site of numerous mills and marine activities, as well as the terminus of the Northern Pacific Railroad,” says Hall. “After a half a century of commercial success, the western side of the waterway began to lose its traditional tenants, leaving vacant buildings and contaminated properties.” Now environmental clean-up is underway, with new residential, retail and commercial properties popping up in the area. The Thea Foss Waterway, a 1.5-mile inlet, is undergoing a clean-up operation. Photo courtesy of Sonja Hall The city recently launched Link Light Rail, which runs 2.5 miles through Tacoma’s downtown. Trains arrive at each of the five stations every 10 minutes and operate every day of the year. Daily ridership is expected to reach 2,000 by 2010. The 224,000-square-foot Greater Tacoma Convention and Trade Center is being developed by M.A. Mortenson Company at 15th and Commerce streets. The $89.7 million center will feature a 50,000-square-foot exhibition hall and 23,000 square feet of meeting room space. It will also have a glass-enclosed lobby and pre-function spaces that offer views of Mt. Rainier and Commencement Bay. The facility will link the commercial district of downtown Tacoma to the University of Washington-Tacoma campus and the Thea Foss Waterway. The project is expected to be completed in fall 2004.

SANTA FE, NEW MEXICO Santa Fe is the capital of New Mexico, as well as America’s oldest capital city. Santa Fe has more than 400 years of history, a nationally recognized art community and an abundance of outdoor recreation, making the city a prime tourist destination. The 1 million to 2 million tourists that visit annually constitute the city’s greatest financial lifeblood. However, the economic development department is focusing on other types of business as well, including high tech, publishing, new media and medical companies, says Catherine Zacher, president of Santa Fe Economic Development Inc. (SFEDI). “We have facilitated a plan we call economic gardening,” says Zacher. “We focus on growing what we have in the community and we have found the growing clusters are attracting similar companies to the area.” The economic gardening approach is based on the idea that the city should focus its efforts on helping existing businesses, instead of using all its resources to attract outside companies. SFEDI is implementing a four step process to help existing clusters, or areas of business, become more competitive in the economy. The steps are cluster identification, cluster activation, cluster support and cluster expansion. Following this program will, in turn, eventually bring more jobs and more business to Santa Fe. That is not to say, however, that there is no new development occurring in the area. Construction is currently underway on the Office Court Technical Center, located south of the Villa Linda Mall. The first phase of the center will consist of 30,000 square feet of office space. The center will feature showrooms, storage and light manufacturing facilities. The project is being developed by Office Court Development and is expected to be completed in March 2004. The 21-acre Valdes Business Park, located on Camino Entrada at the intersection of Cerrillos and Airport roads, is also growing. Saturn is planning to locate at the park by early next year, joining Outback Steakhouse, Federal Express and BMW. At the Airport Industrial Park, the city is looking to attract small start-up businesses. The 40-acre park will be divided into four phases and will be a ‘ready-to-go’ site, with access to existing infrastructure. In order to continue attracting new growth, the city has established BART, a business advisory response team. BART will consist of members of SFEDI and other community professionals working directly with any businesses considering expansion or relocation to Santa Fe. With programs such as economic gardening and BART, the city hopes to move forward while still maintaining its community feel, says Zacher.

SURPRISE, ARIZONA “Surprise has seen more than 3,000 new home starts annually for the past 5 years and will likely hit 5,000 this year,” says Landis Nordenberg, economic development project manager for the city of Surprise. This statistic shows just how quickly Surprise is growing. Surprise is located northwest of Phoenix with a population of about 65,000. However, current projections show that the city’s population could hit 300,000 by 2020. The economic development department is planning accordingly. “In the next few years the city of Surprise will be building an economic base that recognizes our strengths and develops a quality of life in Surprise that will attract and retain businesses,” says Nordenberg. The 132-acre Surprise Recreation Center in Surprise, Arizona, contains a 10,000-seat stadium, 15 major and minor league playing fields, an aquatic center and a 5-acre lake. Not surprisingly, the city has multiple developments underway in the area. The Surprise Downtown Center, covering almost 1 square mile at the corner of Bell and Litchfield roads, will contain more than 20 million square feet of office and retail space when complete. Carefree Partners is developing the project. Adjacent to the center is the 132-acre Surprise Recreation Center. The $37 million recreation complex, which serves as the spring training home for Major League Baseball’s Kansas City Royals and Texas Rangers, includes a 10,000-seat stadium, 15 major and minor league playing fields, a 20,000-square-foot library, an aquatic center and a 5-acre lake. Plans are also in the works for the Sundancers DreamCatcher Park, an athletic complex for children with special needs; it will be funded through donations raised by the Surprise Sundancers, a 600-member volunteer organization. Next to the recreation center is Stadium Village, a 68-acre development created to complement the spring training facility. Stadium Village, being developed by Development Land Investment, will include four hotels, office buildings, multifamily housing, a theater and retail space. Also under development is the 94-acre Surprise Market Place and Surprise Town Center, located just west of the intersection of Bell Road and Grand Avenue. The project is being developed by The Weitz Company and designed by Butler Design Group. Tenants at the center include Wal-Mart, The Home Depot and OfficeMax. “We want to be known as the cultural hub of the Northwest Valley,” says Nordenberg. “We work closely with developers to magnify efforts in attracting businesses, we build relationships with brokers and we invest in regional marketing.”

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