Business Retention and Development Committee Agenda and Packet 2014 07 07

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SUBJECT: LOUISVILLE ECONOMIC INDICATORS AND 2015 GOALS DISCUSSION DATE: JULY 7, 2014 PAGE 2 OF 4 The vacancy rates in Louisville are lower than the NW Denver submarket in the Xceligent database. Frank Kelley with CBRE presented his NW Denver 01 2014 report in June and had different rates for the office component (20.3% direct vacancy). CBRE's statistics may be more accurate, but Xceligent's data is readily available to city staff. The Xceligent database identifies the Sam's Club property as occupied, as it is with the Ascent Church and Low -Cost furniture. The major vacancy outside the Sam's Club is 333/335 Centennial at 400,000 sf. Bestop recently signed a lease for 120,000 sf of 333 Centennial, but has not yet hit the database. Overall, the vacancy rate for all types is comparable to the rest of the entire NW Denver submarket. The industrial sector is the strongest component of the non - residential market in Louisville. Major events fueling the strength for industrial are; • Pearl iZumi completing their building at 101 S. Taylor • Benjamin West completing their building at 415 CTC Blvd • Medtronic leasing 40,000 sf at 1480 Arthur • Trelleborg Sealing Solutions leasing 66,000 sf in 1886 Prairie Way • Boulder Amplifiers planning to build at 1585 Arthur Ave • Etkin Johnson building 65,000 sf at 1900 Cherry and 130,000 at 1900 Taylor. Louisville Tax Revenues Another indicator of Louisville's economic health is tax revenues within the community. The Finance Department prepares monthly reports for the Finance Committee on each of the non - property taxes levied in the City. The April report is attached. 2014 is trending higher than 2013 with an 8% increase in sales tax receipts through April. Lodging taxes are up 14.4% from 2013, and auto use tax is up 19.4 %. These increases show that consumers and businesses are comfortable spending more on products than in 2013, which was the City's largest sales tax generating year to date. Our neighboring communities are seeing similar increases, and further solidifies that the region is becoming stronger. BAP Program Statistics Since 2007, the City Council has approved 53 assistance packages. Of this total, 39 are on -going or completed, consisting of 14 retail projects and 25 commercial /industrial projects. During the previous 12 months, staff processed and Council approved 7 agreements. To analyze the program, staff separated the projects into retail and commercial categories, as a main goal of incenting retail is to encourage new sales in the community, and incenting commercial projects is to encourage high quality primary job 6