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HomeMy WebLinkAboutResolution 2003-008 A RESOLUTION ADOPTING AN ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR THE CITY OF NORTH RICHLAND HILLS RESOLUTION NO. 2003-008 WHEREAS, the Mayor and City Council of North Richland Hills believe it is essential to look forward and plan for future economic viability to support the quality of life in North Richland Hills; and WHEREAS, the Mayor and City Council further believe that to move forward and address future needs of citizens, businesses and the community it is important to establish an Economic Development Strategic Plan; and WHEREAS, TIP Strategies, Inc. was hired as a consultant to assist in the formulation of an Economic Development Strategic Plan by establishing three major strategies for pursuing and supporting future economic viability for the City of North Richland Hills; and WHEREAS, the Mayor and City Council, Planning & Zoning Commission and Economic Development Advisory Committee with City Staff and TIP Strategies set forth to establish specific strategies and objectives for directing economic development efforts in the future for the City of North Richland Hills by participating in a series of joint work sessions held August through October, 2002; and WHEREAS, the Mayor and City Council understand that with a changing environment it is necessary to annually review economic development strategies and objectives to assure that they remain current and address the needs and desires of the community; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS HEREBY ADOPTS THE ECONOMIC DEVELOPMENT STRATEGIC PLAN AND RESOLVES: That the following economic development strategies shall be established for the City of North Richland Hills: Strategy One: Redeveloping & Reusing Vacant and Underutilized Properties · Targeting Reuse of Vacant Retail · Redevelop South Grapevine Highway · Redevelop North Hills Mall · Redevelop Loop 820 Land Uses · Redevelop Existing Neighborhoods Strategy Two: Promoting a Positive Business Climate · Retention of Existing Businesses · Support Diversified Business Recruitment · Facilitate Street Reconstruction Projects Strategy Three: Developing and Promoting an Attractive, Diversified and Thriving Community · Promote High Development Standards · Promote Commuter Rail Service · Enhance Davis Boulevard · Support the City I mage Study · Promote the Smithfield Historical Area · Promote Tourist and Entertainment Venues · Actively Market to Improve the Image of NRH · Promote the HomeTown Development PASSED AND APPROVED this 27th day of January, 2003. CITY OF NORTH RICHLAND HILLS ~. By: Oscar revino, Mayor .. _:':.~...:<;:-.~:' ',~ -~...,..\", \'\\ '. I¡ ~ ¡. .lilt,) ,"Ii, .~ ~. ,', ATTEST: ~~~~ Patricia Hutson, City Secretary 2 North Richland Hills Economic Development Plan yk�» xw 1 • ` r V,-- b� • )+ .t.,141,1%,„ NoIN4d fd an„.naFO y 3 a ,�, r y _ R3Pu9 j s '.a ¢ "i = n .. ,• - !yl•Ib -;/ FigSlahm No.l f q`3laNY'RiS9•darw,lary t{•�NaBI RMq. lay 3 f 1. fay j� l: .�,..«,,.. ]` s _ I '„ ,, ,° 1I 6 m IN!.... tdwal i� kP 7 3 : , chrwS.hPao•k IbMWnI ° .... „. % J' ;r^ -lI cmo 6 a +;math C1•11C1•1111.n ,•R.o$* c la(110„,•110# v i • rt t1I _ x y t: 1t i. tla ik t • Ks Park ,fi C' Ralah R 'd +�! a. au b0y L.. '' •Ibky 11 I ( M.:y/. TORAH u'unTy e.g. 3 f RIhiM Ft I ;MhkM FNE R SI Ibn N.3 N6 Cad\pus v��z R dHgh'h••■•F PaksRRevealM'�dM"- ... '. T• -,C1 4r EmmW./ - � • f ' /.; { s t d •kll TM, y 4 i / '/ Gn ' Uk Ra•A•••w••w • IM9N dow `.``,-.f� . , '-o”" 4A. . , 41.•••••••11114111.71".) \" S Ec yT•.S1... a .t � ,, , A0 a.k Pak ..,.... , ,,jq`k /0. .$'< / , el I January 2003 A RESOLUTION ADOPTING AN ECONOMIC DEVELOPMENT STRATEGIC PLAN FOR THE CITY OF NORTH RICHLAND HILLS RESOLUTION NO. 2003-008 WHEREAS, the Mayor and City Council of North Richland Hills believe it is essential to look forward and plan for future economic viability to support the quality of life in North Richland Hills; and WHEREAS, the Mayor and City Council further believe that to move forward and address future needs of citizens, businesses and the community it is important to establish an Economic Development Strategic Plan; and WHEREAS, TIP Strategies, Inc. was hired as a consultant to assist in the formulation of an Economic Development Strategic Plan by establishing three major strategies for pursuing and supporting future economic viability for the City of North Richland Hills; and WHEREAS, the Mayor and City Council, Planning & Zoning Commission and Economic Development Advisory Committee with City Staff and TIP Strategies set forth to establish specific strategies and objectives for directing economic development efforts in the future for the City of North Richland Hills by participating in a series of joint work sessions held August through October, 2002; and WHEREAS, the Mayor and City Council understand that with a changing environment it is necessary to annually review economic development strategies and objectives to assure that they remain current and address the needs and desires of the community; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS HEREBY ADOPTS THE ECONOMIC DEVELOPMENT STRATEGIC PLAN AND RESOLVES: That the following economic development strategies shall be established for the City of North Richland Hills: Strategy One: Redeveloping & Reusing Vacant and Underutilized Properties • Targeting Reuse of Vacant Retail • Redevelop South Grapevine Highway • Redevelop North Hills Mall • Redevelop Loop 820 Land Uses • Redevelop Existing Neighborhoods 1 Strategy Two: Promoting a Positive Business Climate • Retention of Existing Businesses • Support Diversified Business Recruitment • Facilitate Street Reconstruction Projects Strategy Three: Developing and Promoting an Attractive, Diversified and Thriving Community • Promote High Development Standards • Promote Commuter Rail Service • Enhance Davis Boulevard • Support the City Image Study • Promote the Smithfield Historical Area • Promote Tourist and Entertainment Venues • Actively Market to Improve the Image of NRH • Promote the HomeTown Development PASSED AND APPROVED this 27th day of January, 2003. CITY OF NORTH RICHLAND HILLS By: Oscar revino, Mayor ATTEST: '47r, ■ `i�- 'm l.� ; ft Patricia Hutson, City Secretary Approve. as o form and legality: 40 IfL,LLI George A. Stapl's, Attorney 2 Acknowledgements The project team would like to thank the members of the North Richland Hills City Council, the Economic Development Advisory Board, the Planning and Zoning Commission, and the staff of the City of North Richland Hills for contributing their valuable insight and feedback to this plan. CITY COUNCIL Oscar Trevino, Jr. - Mayor Frank Metts, Jr. - Mayor Pro Tem Joe Tolbert JoAnn Johnson Scott Turnage Lyle Welch David Whitson Tim Welch PLANNING It ZONING COMMISSION Don Bowen - Chairman Ted Nehring - Vice Chairman George Tucker Bill Schopper John Lewis James Laubacher Brenda Cole ECONOMIC DEVELOPMENT ADVISORY BOARD Janet Golightly Jim Makens Randy Moresi Dan Quinto Linda Timmons Terry Willey Alan Young CITY STAFF Larry J. Cunningham, City Manager Steven P. Norwood, Assistant City Manager John Pitstick, Director of Development Services Consulting Team TIP Strategies, Inc. Tom Stellman, President Jon Roberts, Managing Director—Economic Development Ahrey Smith, Project Director i North Richland Hills Economic Development Plan CONTENTS Acknowledgements i Contents ii Executive Summary 1 Strategy 1: Redeveloping and Reusing Vacant and Underutilized Properties 3 Strategy 2: Promoting a Positive Business Climate 6 Strategy 3: Developing and Promoting an Attractive, Diversified, and Thriving Community 8 Appendix A: Dallas-Fort Worth Metroplex Overview 12 Demographics 12 Economy 12 Industrial Real Estate 15 Retail 15 Office 15 Housing 17 Appendix B: Demographic Overview 19 Appendix C: Business Activity in NRH 23 Appendix D: Economic Development Strategies Et Action Items 27 ii North Richland Hills Economic Development Plan Executive Summary Successful economic development is the result of careful planning that considers a community's needs, wishes, and vision. In early 2002, the North Richland Hills City Council adopted a set of goals that represents the vision for the city. Wanting to create a well-crafted plan for economic development, the City of North Richland Hills engaged TIP Strategies, Inc., an Austin-based consulting firm, to build upon the council's vision. The city, with assistance from TIP Strategies, Inc., began the strategic planning process in order to prioritize resources and identify actionable items for successful, sustainable economic development. The team focused on identifying North Richland Hills' most pressing economic development issues by considering current demographic data and information garnered from interviews with members of the community. Once the urgent issues were identified, solutions were suggested and analyzed to ensure compliance with the council's "Citywide Goals." These goals addressed: • Safety and Security • Quality Development • Financially Responsible City Government • Quality Redevelopment and Reinvestment • Quality of Life Amenities for the Community • Effective Transportation System With these goals in mind, the NRH Economic Development Department set out to draft an economic development plan to guide the city. The purpose of this plan to provide a framework for the city council regarding the allocation of resources and to provide a roadmap for city staff. The findings and recommendations herein result from research and analysis by city staff and TIP, with input and validation from the city council, economic development advisory board and the city's planning and zoning commission. The plan supports the city council's vision, sets forth the main strategies for economic development, and suggests actions to support these strategies. Based on research and input from the city council, chamber of commerce, economic development board, and the development department, city staff and TIP Strategies, Inc. created a list of three strategies and sixteen actionable items for further debate and prioritization by the council.' ' A complete listing of the strategies and action items, which were compiled from a list of issues presented by the joint task force, is included as Appendix B of this document. 1 North Richland Hills Economic Development Plan • Strategy 1: Redeveloping and reusing vacant and underutilized properties Although sites are currently available, the city is expected to run out of prime tracts of developable land in the next 5 to 7 years. Given the city's inability to expand by annexation, the continued growth of NRH will be dependent upon the preparation of a plan for the redevelopment and reuse of existing land, both commercial and residential. • Strategy 2: Promoting a positive business climate Businesses expand and move to communities in which they feel they are welcome. Promoting a positive business climate encourages business investment and growth and keeps existing businesses from moving to other communities. Some of the best marketing and economic development efforts are a result of word of mouth testimonials from local business leaders. It is important for North Richland Hills to have an active business marketing, communication and retention plan to grow companies that support the existing business base. Since the process and results are not easy to quantify, these efforts must be part of a determined and consistent effort. Strategy 3: Developing and promoting an attractive, diversified, and thriving community Finally, the community must define and promote an appealing identity. North Richland Hills can become a family entertainment destination of choice for North Texas. The city already offers a wide variety in family recreation. NRH should build from this base by continuing to enforce high development standards while improving and beautifying public spaces and historical areas to differentiate North Richland Hills from other communities in the area. The DFW Metroplex continues to grow and NRH occupies an advantageous position within the region, both literally and figuratively. NRH is strategically located in the center of the Metroplex with easy access to transportation corridors. The city is also positioned to develop into a more vibrant, unique community within the Metroplex. By pursuing the three strategies outlined in this plan, the city will realize sustainable economic and community benefit. 2 North Richland Hills Economic Development Plan Strategy 1: Redeveloping and Reusing Vacant and Underutilized Properties BACKGROUND North Richland Hills experienced dramatic growth during the 1990s, adding an average of 1,000 residents per year between 1990 and 2000. The city's location in the burgeoning Dallas-Fort Worth consolidated metropolitan statistical area (CMSA), one of the fastest growing metro areas in the United States, provides an opportunity for NRH to attract new residents and employers. The city's continued economic TABLE 1: POPULATION GROWTH, 1990-2000 expansion, however, is threatened by the fact that NRH is rapidly 1990 2000 °/0 Change approaching build-out, a state in Texas 16,986,510 20,851,820 22.8% which all developable land is Dallas-Ft Worth CMSA 3,885,415 5,221,801 34.4% occupied. Failure to take action Tarrant County 1,170,103 1,446,219 23.6% on this issue can cause significant North Richland Hills 45,895 55,490 20.9% financial burden and hamper the Source:U.S. Census Bureau city's ability to attract new businesses. Currently, the city is about 85 percent developed, with land still available for traditional industrial uses as well as high-traffic retail corners, prime office locations, and residential subdivisions. However, the city will likely run out of prime tracts in the next 5 to 7 years. Given the community's inability to expand further through annexation, there is only one option for economic growth: the reuse or redevelopment of existing properties, both commercial and residential. The prime redevelopment corridor is the South Grapevine Highway Corridor south of Loop 820, a long- standing retail area bounded by North Hills Mall to the north and Richland Business Centre to the south. North Richland Hills has a strong retail concentration, with approximately 2.5 million square feet available for retail. Under current market conditions, however, NRH is experiencing vacancy rates in the 20 percent to 25 percent range. Some old retail centers have been converted successfully to flexible space and high-density office use. The cities in Northeast Tarrant County compete fiercely for retail outlets. In the past, North Richland Hills has benefited from sales tax revenues garnered from retail leakage from surrounding cities. Retail leakage is the degree to which residents of other communities spend retail dollars, and pay sales tax, in North Richland Hills rather than their own communities. Neighboring communities such as Keller, Southlake and Watauga, in an attempt to curb the outflow of sales tax revenues, have focused on attracting major retailers. North Richland Hills has responded by adding big boxes such as SuperTarget, Super Wal-Mart, and Home Depot in the northern part of the city. This strategy will not be sustainable as prime retail space becomes more limited. As land supplies are depleted, the city will be forced to address redevelopment of existing properties. Indeed, such projects are already beginning. For instance, developers are in the process of "reinventing" the local mall. Currently, the North Hills Mall has only one major anchor (Mervyns). If the mall continued to compete against other retail centers, it would almost certainly fail. However, the 3 North Richland Hills Economic Development Plan owners of this property are proposing to convert the facility from traditional retail to an entertainment center with an aggressive skate park, ice skating rink, restaurants, movie theatres, comedy club and other night-time and weekend family entertainment. This project can build on other local attractions, such as NRH2O, Blue Line, and Mountasia, to expand North Richland Hills' family-entertainment opportunities. Furthermore, the new vision of the mall will not compete with other area retail centers for revenues; rather it will further diversify the City's sales tax base. In order to facilitate continued growth, NRH must encourage redevelopment and reuse of vacant and underutilized properties. In doing so, not only will the city achieve economic benefit through the expansion of its property tax base, the community will also evolve to meet the needs of residents and industry. ACTIONS A. Targeting Reuse of Vacant Retail NRH currently houses 2.5 million total square feet of retail space in the City with a 20 to 25 percent vacancy rate. Proactively marketing reuse of retail properties with targeted growing businesses will be very important in maximizing North Richland Hills commercial property base as the city approaches build out. B. Redeveloping South Grapevine Highway The South Grapevine Highway is an older retail corridor on the south end of town—away from newer development. By redeveloping this corridor the city would help support older areas of town while minimizing the impression of Loop 820 as a barrier within the community. Funds have been set aside in the 2002/2003 budget year to plan for the South Grapevine Highway redevelopment. The initiative is a combined effort between NRH and the City of Richland Hills, with each city funding 50 percent of the project. C. Redeveloping North Hills Mall This is a major effort to redevelop an older traditional mall that has been hit hard. The City has signed a multi-year property and sales tax rebate agreement to facilitate the redevelopment of North Hills Mall. A major element in the redevelopment will be to reposition and attract entertainment and sports enthusiasts rather than traditional clothing and fashion customers. Redevelopment of the mall is important for the city and for continued redevelopment south of the freeway. D. Evaluating Highest and Best Land Use of Loop 820 Area Loop 820 is about to experience a total reconstruction. The freeway will be expanded from 6 lanes to 10 lanes with HOV lanes and frontage road improvements. Upon completion, this road is expected to become a major regional freeway. With the predicted increase in traffic, this development will encourage a change in land uses surrounding the freeway. Although the project will not be completed until 5 to 7 years from now, it is imperative that the city begin its planning efforts soon. 4 North Richland Hills Economic Development Plan E. Redeveloping Existing Neighborhoods NRH's population continues to grow steadily, with about 350 new single family starts each year and about 1,000 new residents. The city should continue to support the Neighborhood Identity Program for redevelopment and enhancement of older or previously developed residential areas to accommodate further residential growth. 5 North Richland Hills Economic Development Plan Strategy 2: Promoting a Positive Business Climate BACKGROUND NRH is home to roughly 1,100 businesses employing 25,000. The area offers a diverse mix of businesses including traditional industry, retail, entertainment, and medical services. City leaders have developed an aggressive mix of incentives to attract quality development, including tax abatements for relocations and expansions, and triple Freeport exemption. These incentives have benefited several area businesses and help the city attract new business to the community. TABLE 2: MAJOR EMPLOYERS, 2003 Number of Number of Employees Employees UICI-The Insurance Centerl 1176 Bates Container 198 North Hills Hospital 820 Sam's Club 195 Kimberly Clark 531 Auto Nation-Hudiburg 190 Tarrant County College-NE Campus 502 CTS Con-Way Transportation 178 Super Wal Mart—820 400 Olive Garden 170 Tyson Foods 400 Richland Hills Church of Christ 150 Triad Financial Corporation 350 Home Depot- 820 150 Silver Leaf Resorts 328 Home Depot Expo 137 Super Wal Mart—N.Tarrant Pkwy 309 ManorCare Health Services 136 Five Star Ford 264 Allen Samuels Dodge 135 Sealy Mattress 200 Huggins Honda/Mitsubishi 120 Source: City of North Rich/and Hills Major employers are a significant source of job creation, adding approximately 320 new jobs in 2000. In 2001, businesses in NRH participated in a survey that sought to identify attributes that helped the city retain existing operations. Businesses identified four major areas as "very important" for their continued tenancy in North Richland Hills: 1) proximity to customers (86 percent), 2) an expanding market (80 percent), 3) freeway access (73 percent), and 4) community support (62 percent). NRH's central Metroplex location offers direct access to freeways, a factor that has contributed to the city's evolution from a suburban environment to a more urban center. However, the city has some 6 North Richland Hills Economic Development Plan transportation infrastructure liabilities as well. New road construction is interrupting access to existing businesses. For example, the city is currently expanding Rufe Snow from 5 lanes to 7 lanes. This roadway is a major retail corridor and the project, with its corresponding inconveniences and disruption to traffic and businesses, is expected to continue for at least the next 2 years. North Tarrant Parkway is also in the process of being expanded from 2 lanes to 6 lanes. The state has plans to widen Grapevine Highway in the next few years, which will exacerbate major business interruptions. Finally, Loop 820 will be completely reconstructed from 6 lanes to 10 lanes with 2 HOV lanes and significant frontage road improvements. This project, which will include the construction of a bridge over Loop 820 on Rufe Snow, should start within the next 3 to 5 years. The increase in access and visibility resulting from the Loop 820 project will change the face of the suburban developments that currently surround the freeway. Business establishments and the City will see increased receipts if this land is redeveloped as higher density, urban uses. However, the city should take action to facilitate these construction projects and minimize the burden on affected businesses. ACTIONS A. Retaining Existing Businesses In the course of economic development discussions, many communities focus solely on recruiting new businesses. While it is important to attract new businesses, it is equally important to keep existing businesses in North Richland Hills. B. Supporting a Regional Approach to Business Recruitment Efforts are underway to form a Northeast Tarrant "Quality of Life" Foundation made up of B.I.S.D. and the cities of North Richland Hills, Richland Hills, Watauga and Haltom City to help promote and recruit businesses on a regional basis. The foundation will promote the assets of all member communities to actively recruit business relocations into the region. C. Facilitating Street Reconstruction Projects The City of North Richland Hills has been fortunate to receive federal, state and local funding to improve roadways throughout the community. However, the timing of major reconstruction of Rufe Snow, North Tarrant Parkway, Loop 820 and possibly other thoroughfares such as Grapevine Highway will cause major disruptions for the traveling public and local businesses. 7 North Richland Hills Economic Development Plan Strategy 3: Developing and Promoting an Attractive, Diversified, and Thriving Community BACKGROUND Formerly a bedroom community of Fort Worth, North Richland Hills is now the third largest city in Tarrant County, following Fort Worth and Arlington. While residential population continues to grow steadily—with roughly 350 new single family starts each year and about 1,000 new residents—NRH is becoming increasingly urban, adding approximately 1,500 new jobs each year. The North Central Texas Council of Governments forecasts continued growth for the area during the next 20 years, with growth in employment outpacing residential growth. TABLE 3: DEMOGRAPHIC FORECAST, 2025 1995 2025 1995-2025 Estimate Projection Net Percentage Growth Growth Population 50,300 82,750 32,450 65% Households 18,500 31,150 12,650 68% Jobs 12,800 23,350 10,550 82% Source: North Central Texas Council of Governments As a result of the city's steady growth, a number of major development projects have been undertaken in the area. One of the largest, the HomeTown development, was approved by community leaders in 1999. This 300-acre mixed use development located near the center of the city calls for 650 custom homes; 800 multifamily dwellings; 160,000 square feet of retail; and approximately 650,000 square feet of office space. Improvements in this development are partially financed using a tax increment financing district. The funds collected under the TI F will fund the construction of a major recreation center, central library and performing arts and conference center. The development is progressing well, with the second phase of single-family homes about to begin. TABLE 4: MAJOR DEVELOPMENTS 2000- 2002 Project Description H&M Food Systems expansion $15 million; 18,000 sq.ft Richland Plaza Mall redevelopment $5 million; 305,000 sq. ft. Richland Pointe Mall redevelopment 210,000 sq.ft. 287 acres; 650 SF homes; 800 MF units; Master-planned Town Center 160,000 sq.ft. retail; 650,000 sq. ft. office The Crossing shopping center $24 million; 285,000 sq. ft.; anchored by Kohl's and Minyard's grocery 8 North Richland Hills Economic Development Plan Tarrant Parkway Plaza shopping center 102,000 sq. ft.; anchored by Albertson's Home Depot Expo Design Center $5.1 million; 92,475 sq. ft. Blue Line Ice Complex $10 million; 140,000 sq. ft. Second Super Wal Mart $6.4 million; 212,000 sq. ft. Super Target $6 million; 174,000 sq. ft. UICI addition $12 million; 128,000 sq. ft. Source: City of North Richland Hills As a result of the city's continued growth, the city council has recently upgraded development and aesthetic standards dramatically, with new requirements for masonry, architectural features, landscape buffers and tree preservation. While most businesses are accepting of these standards they often point to existing properties that are grandfathered and, therefore, less expensive to develop. Higher development standards, prime location and shrinking real estate reserves have increased the cost of land and, as an extension, the overall cost of developing land. At present, there is no real effort to promote the image of North Richland Hills. Current residents are aware of the city's advantages, such as quality schools, safe neighborhoods, clean streets, good shopping, abundant entertainment, and low crime rate. Several entities in Tarrant County, including the cities, school districts, and the chamber have recently been discussing a consolidated "quality of life" campaign to help promote the image of Northeast Tarrant County. Each entity is planning to help fund this effort. The goal of this marketing effort is to create a positive image to aid communities in the region when recruiting major business prospects. In addition to participation in this regional initiative, the development of a marketing campaign for NRH should be undertaken to foster a desirable image for the city and help differentiate it from other communities in the Metroplex. ACTIONS A. Promoting High Development Standards The city continues to promote high development standards. Many communities pursue "growth at any cost" and, as a result, are overrun by short lived, unattractive, and poorly constructed developments. North Richland Hills is determined to grow in an attractive, meaningful manner through the use of high development standards such as all masonry construction, improved landscaping, appropriate screening, tasteful signage, and other beneficial development standards. B. Promoting Commuter Rail Service A Dallas Area Rapid Transit rail line runs directly through North Richland Hills. Within the past year, commuter rail service has linked downtown Fort Worth to downtown Dallas. The rail line 9 North Richland Hills Economic Development Plan that runs through North Richland Hills is expected to become one of the next major commuter lines in the Metroplex connecting the northern cities to DFW airport and the central cities. North Richland Hills has great access to the rail line and prime real estate near the rails. The rail service could breathe new life into the Smithfield Historic Area and increase the market appeal of the nearby HomeTown development. Commuter rail is an important development issue and appears to be on a 5 to 7 year horizon. C. Enhancing of Davis Boulevard North Richland Hills has an entrance and exit ramp from Loop 820 to Davis Boulevard, the main roadway running down the center of town. This interchange is the gateway to the community and fuels the perceptions of commuters on the freeway. The city should improve the look of and access to Davis Boulevard in order to build a more positive city image. This project could help advertise North Richland Hills' attractions and amenities and should build on the community's branding and marketing efforts. This project will become more important as more commuters utilize the improved Loop 820 to access the central core of the Metroplex. D. Support City Image Study North Richland Hills recently underwent a full city image study. The recommendations resulting from this work are inseparable from the city's economic development strategies and objectives. The city image study identified several infrastructure needs, including burying overhead utilities, improved street signals, medians, street signs, special pavements and decorative banners to help improve the overall look and curbside appeal of the city. By addressing these issues, NRH can facilitate other development efforts. E. Promoting the Smithfield Historical Area The Smithfield Historic District is in the center of the community. It has some historical significance and could be the future location of a commuter rail stop. Funds have been set aside to develop a plan for redevelopment of the Smithfield area. Redevelopment efforts should be historically sensitive, economically viable, and sustainable. F. Promoting Tourist and Entertainment Venues The City of NRH has been successful in funding a family water park (NRH2O) and golf course (Iron Horse) that are competing successfully in the region. NRH is home to Mountasia—a miniature golf, games and sports center. Blue Line Ice Complex is a three-sheet ice complex that houses a minor hockey league team and abundant league play. The redevelopment of North Hills Mall will also be more related to entertainment than fashion or clothing. The city has not had a concentrated effort to promote these entertainment venues. As NRH gains an image, it is important to actively promote the city's tourist and entertainment venues. G. Actively Marketing to Improve the Image of NRH Successful suburbs have images. NRH has neither a positive nor a negative image, partially a consequence of having only limited marketing. In the past, North Richland Hills has used hotel/motel taxes to help fund its promotional efforts. However, this fund is diminishing. It is important for the city to establish and foster an image in order to differentiate itself from other communities in the DFW Metroplex. 10 North Richland Hills Economic Development Plan H. Promoting the HomeTown Development The 300-acre HomeTown development is an important project that currently includes housing with plans for retail and other services. This development represents an opportunity to begin to establish a center and identity for the community. 11 North Richland Hills Economic Development Plan APPENDIX A: DALLAS-FORT WORTH METROPLEX OVERVIEW TABLE A-1: EMPLOYMENT GROWTH, 1996-2000 Demographics DFW The Dallas-Ft. Worth Sector Metroplex* Texas consolidated metropolitan Mining -19% -4% statistical area contains more Construction 42% 29% than 9,106 square miles, and Manufacturing 5% 3% consists of the following 12 Transportation&Public Utilities 24% 20% counties: Collin, Dallas, Denton, Communications 34% 36% Ellis, Henderson, Hood, Hunt, Wholesale Trade 19% 15% Johnson, Kaufman, Parker, Retail Trade 16% 13% Rockwall, and Tarrant. The DFW Finance, Insurance,&Real Estate 22% 18% Metroplex reported a population Services 25% 22% of 5,221,801 in 2000, slightly Total Government 14% 7% Total Employment 19% 14% more than one-fourth of the Texas population. Other notable Source: Texas Workforce Commission, Current Employment Statistics facts regarding the DFW *Includes Dallas MSA and Fort Worth Arlington MSA Metroplex population over the past decade include: • The Metroplex was the fastest growing metro area among the top 10 most populous metro areas in the United States (29.3 percent growth rate). • It had the 3rd largest absolute growth rate in the United States of 1,184,519 people. • It is the 9th largest metro area in the United States. Tarrant County, with a growth rate of only 23.6 percent, grew more slowly than many of its neighbors from 1990 to 2000. Fast-growing counties included Collin County (86.2 percent), Rockwall County (68.3 percent) and Denton (58.3 percent) Economy The Metroplex is home to one of the world's most vibrant economies and is ranked first in economic productivity in the United States. The Metroplex commands a substantial share of the Texas economy, accounting for 29 percent of employment, 37 percent of employment growth, 33 percent of gross sales, and 30 percent of retail sales in the state. It has been named the American city with the fastest growing economy by Fortune Magazine. Non-farm employment in the DFW Metroplex grew by about one-fifth from 1996 to 2000. Construction was the fastest growing sector during the five-year period, with employment surging by 42 percent. This dramatic increase reflects the boom in residential, commercial, office, transportation, and industrial construction the Metroplex has experienced over the last several years. The only sector to lose employment was mining, reflecting the continued loss of oil and gas jobs in the area and the state. 12 North Richland Hills Economic Development Plan Employment data for the Metroplex also reveal the increasing importance of service producing sectors to the area. While manufacturing employment grew by 5 percent, employment in all service related sectors increased at double-digit rates. Table C-2 provides a breakdown of industry employment growth in more detail. The industries registering the largest percentage increase in employment were in construction, professional business services, and manufacturing of construction materials. The largest numeric increases in employment were in business services, local government, construction, and retail. TABLE A-2: METROPLEX NON-FARM SECTOR EMPLOYMENT GROWTH, 1996-2000* 1996 2000 Percent Rank Industry Employment Employment Change 1 HEAVY CONSTRUCTION 13,700 21,400 56% 2 NONDEPOSITORY INSTNS 21,200 33,000 56% 3 SPECIAL TRADE 71,900 103,000 43% 4 ENGINEERING&MNGMNT. 55,600 79,200 42% 5 BUSINESS SERVICES 206,300 289,900 41% 6 BLDNG MATLS,GRDN SUPL 13,200 18,500 40% 7 PRIMARY METAL INDUSTRIES. 6,300 8,500 35% 8 STONE, CLAY,GLASS 11,000 14,600 33% 9 TRUCKING&WAREHOUSE 38,800 50,800 31% 10 SECURITY&COMMODITY 9,700 12,700 31% 11 GEN BLDNG CONTRACTORS 21,700 28,200 30% 12 FURN, HOMEFURN, EQUIP 24,100 30,800 28% 13 FURNITURE&FIXTURES 7,100 8,900 25% 14 EDUCATIONAL SERVICES 27,100 33,600 24% 15 MISC RETAIL 50,700 61,900 22% 16 LUMBER&WOOD PRODS. 11,300 13,700 21% 17 REAL ESTATE 36,500 44,200 21% 18 INSURANCE AGENTS 18,000 21,700 21% 19 AMUSEMENT, RECREATION 24,900 29,800 20% 20 DEPOSITORY INSTNS 32,600 38,700 19% 21 FABRICATED METAL 27,200 32,200 18% 22 EATING&DRINKING 153,000 180,700 18% 23 TRANSPORTATION BY AIR 55,000 64,900 18% 24 TOTAL LOCAL GOVERNMENT 202,000 235,800 17% 25 APPAREL&ACCESSORY 20,600 23,900 16% 26 AUTO REPAIR&PARKING 24,000 27,500 15% 27 RUBBER&MISC PLASTIC 16,200 18,500 14% 28 ELECTRONIC EQUIPMENT 65,100 74,200 14% 29 PERSONAL SERVICES 23,600 26,800 14% 30 MISC REPAIR SERVICES 7,400 8,300 12% 31 GENERAL MERCHANDISE 54,400 60,900 12% 32 LEGAL SERVICES 19,900 22,200 12% 33 HOTELS&OTHR LODGING 27,300 30,100 10% 34 AUTOMOTIVE DEALERS 41,000 45,200 10% 35 TOTAL FEDERAL GOVT. 42,400 46,700 10% 36 HEALTH SERVICES 151,000 165,600 10% 13 North Richland Hills Economic Development Plan 1996 2000 Percent Rank Industry Employment Employment Change 37 MOTION PICTURES 11,000 12,000 9% 38 HOSPITALS 54,300 59,000 9% 39 CHEMICALS&ALLIED 13,700 14,500 6% 40 FOOD&KINDRED PROD. 22,500 23,800 6% 41 INSURANCE CARRIERS 38,000 40,100 6% 42 MISC MANUFACTURING 6,000 6,100 2% 43 LOCAL&INTERURBAN 6,500 6,600 2% 44 FOOD STORES 61,600 62,500 1% 45 PAPER&ALLIED 10,200 10,300 1% 46 PRINTING&PUBLISHING 31,800 32,100 1% 47 TRANSPORTATION EQUIP. 45,100 45,400 1% 48 TOTAL STATE GOVERNMENT 35,800 36,000 1% 49 ELECTRIC,GAS,SANITARY 12,300 12,100 -2% 50 INDUSTRIAL MACHINERY 31,600 29,400 -7% 51 APPAREL&OTHER TXTLE 12,900 10,100 -22% 52 INSTRUMENTS&RELATED 22,200 17,300 -22% Source: Texas Workforce Commission, Current Employment Statistics *Includes Dallas MSA and Fort Worth Arlington MSA The Metroplex is becoming an increasingly popular location for corporate headquarters. Its central location within the U.S., transportation links, moderate cost of living, and pro-business climate, have attracted such major corporations as Exxon/Mobil, J.C. Penney, and Kimberly-Clark. In fact, the region hosts 18 Fortune 500 companies and three of Fortune Magazine's 'Top 10 Best Companies to Work For." TABLE A-3: TOP PRIVATE EMPLOYERS IN THE METROPLEX No.of No. of Company Employees Company Employees AMR Corp./American Airlines 37,551 J.C. Penney 10,000 Raytheon 18,000 Tom Thumb Food&Pharmacy 9,000 Texas Health Resources 17,100 Bank of America 8,961 Southwestern Bell 14,300 Alcatel 8,717 GTE 14,000 Associates of First Capital 8,000 Baylor Health Care System 13,200 United Parcel Service 8,000 EDS Corporation 12,000 Minyard Food Stores 7,622 Texas Instruments 11,000 Albertson's Inc. 7,407 Lockheed Martin 10,600 Kroger Food Stores 7,300 Columbia/HCA 10,500 Nortel Networks 7,300 Sources:Greater Dallas Chamber and the City of Dallas 14 North Richland Hills Economic Development Plan Industrial Real Estate The Dallas-Ft. Worth area is the nation's 4th largest industrial market, with more than 400 million square feet of distribution and warehouse space. The average lease and vacancy rates for the first quarter of 2002 were $4.00 per square foot and 8.6 percent respectively. TABLE A-4: INDUSTRIAL PROPERTY STATISTICS, DALLAS-FORT WORTH, FIRST QUARTER 2002 Industrial Flex Total Average Rent per Square Foot $4.0 $7.8 n/a Vacancy Rate 8.6% 9.2% 8.8% Net Absorption 682,174 -318,144 364,030 Square Ft Under Construction (12/00) 2,931,271 1,051,846 3,983,117 Total Existing Square Feet 506,531,636 122,719,505 629,251,141 Source:Real Estate Center at Texas A&M Retail The DFW area is currently experiencing a decline in retail TABLE A-5: TOP RETAIL CONSTRUCTION construction. Slower economic growth combined with an AREAS, 2000 overcapacity of space has resulted in declining construc- Area Square Feet tion in most areas. Construction in the north Metroplex Frisco 2,400,000 remains strong, with almost 4 million square feet of retail piano 1,400,000 space constructed in Frisco and Plano in 2000. The average rent and vacancy rates for Dallas downtown retail Irving 592,543 areas in 2000 were $15.00 per square foot and 26.7 Far North Dallas 473,941 percent respectively. Source: Weitzman Group Office Texas ranks 25th nationally in office jobs (i.e., jobs in offices as share of total number of jobs). Dallas- Ft. Worth ranked fifth in the nation for number of square feet leased in 2000. The downtown area has more than 28 million square feet of office space and the second highest downtown vacancy rate in the country (26.9 percent). Dallas is ranked 27th nationally in office rents with an average rent of $24.92 per square foot. Lease rates range from $7 to $37.50 per square foot. Far North Dallas leads the area for net leasing with 2.4 million square feet with the Richardson Telecom area close behind. 15 North Richland Hills Economic Development Plan TABLE A-6: DALLAS OFFICE PROPERTY STATISTICS, FIRST QUARTER 2002 - -a "�a a' p f a„R.iwr nfih i - ,n � iaMlir^ '` ` ,..... Total space(in square feet) 154,077,374 Total space(in square feet) 11,199,735 Absorption -1,287,377 Absorption 44,510 Occupancy(in percent) 75.4 Occupancy(in percent) 80.3 Weighted Gross Rental Rate $20.7 Weighted Gross Rental Rate $19.7,, 1c ORTH MitS4RESTOS,CENTE 'N Total space(in square feet) 29,995,235 Total space(in square feet) 3,671,224 Absorption -287,620 Absorption -100,043 Occupancy(in percent) 71.4 Occupancy(in percent) 86.4 Weighted Gross Rental Rate $19 6 Weighted Gross Rental Rate $22.6 i r �4�" _»- �����°�� Total space(in square feet) 2,743,680 Total space(in square feet) 8,771,694 Absorption 31,681 Absorption -99,282 Occupancy(in percent) 85.2 Occupancy(in percent) 83.2 Weighted Gross Rental Rate $15 Weighted Gross Rental G't`* Rate $23.9 I 2 A �'! p �STgvi! I � '46=4- �,�d�, :FLU' i�� `"t= ` Total space(in square feet) 23,205,316 Total space(in square feet) 9,405,341 Absorption -296,345 Absorption -29,726 Occupancy(in percent) 76.3 Occupancy(in percent) 75.8 Weighted Gross Rental Rate $21 6 Wei hted Gross Rental Rate $19.9 �(u sRe &ia Imo"° tbk 2 _ a17 ..p" 111$1 �% rk'atiltG�Pk. n .�° �.a�T .� ruff w�Id n_ ® west I6�� n,w� s �4 .t.a,... PAPAW tiJ�"6 ' t�-�, _��, i � Total space(in square feet) 25,320,047 Total space(in square feet) 1,275,628 Absorption -123,712 Absorption -10,877 Occupancy(in percent) 72.1 Occupancy(in percent) 83.8 Weighted Gross Rental Rate $22 2Wyeighted Gross Rental Rate $13 5 i X i i ' dart } _ �` 4111�°L'I'dAT REEWAY ^ `'' `PtrJi th q» u 7 Total space(in square feet) 14,758,355 Total space(in square feet) 21,786,499 Absorption -205,962 Absorption -295,252 Occupancy(in percent) 74.9 Occupancy(in percent) 75.7 Weighted Gross Rental Rate $20.,4 Weighted Gross Rental Rate $20.0 Total space(in square feet) 1,944,620 Absorption 82,251 Occupancy(in percent) 66.9 Weighted Gross Rental Rate $18.1 Source:Grubb&Ellis as published by the Real Estate Center at Texas A&M 16 North Richland Hills Economic Development Plan TABLE A-7: FORT WORTH OFFICE PROPERTY STATISTICS, FIRST QUARTER 2002 mn ® � ® �� <M _ ._ �h hC�eM i Total space(in square feet) 29,248,675 Total space(in square feet) 1,339,387 Absorption -175,155 Absorption -27,745 Occupancy(in percent) 79.8 Occupancy(in percent) 82.9 Weighted Gross Rental Rate $19 1 Weighted Gross Rental Rate $17 7 �m�, 1 z � w Y E 9h�ihh; , !E;.,:.._,!I ,. .'".1 '".�® gym_ Total space(in square feet) 8,998,899 Total space(in square feet) 3,865,770 Absorption -157,360 Absorption 5,845 Occupancy(in percent) 81.8 Occupancy(in percent) 87.5 Weighted Gross Rental Rate $20.8 Weighted Gross Rental Rate $16 5 ���wwNURTF1 FORT WORTH ,.�k�. Total space(in square feet) 12,603,838 Total space(in square feet) 2,540,781 Absorption -6,398 Absorption 10,503 Occupancy(in percent) 80.5 Occupancy(in percent) 56.4 Weighted Gross Rental Rate $18.9 Weighted Gross Rental Rate $19.0 Source:Grubb&Ellis as published by the Real Estate Center at Texas A&M Approximately 2.2 million square feet of office space were added to the Dallas-Fort Worth metro area during the first quarter of 2002, with an additional 1.2 million under construction. Nearly all of this construction occurred in suburban areas, with only slightly more than 200,000 square feet completed in the central business district (CBD). Sales of office space for the DFW area range from $18.26 to $157 per square foot. TABLE A-8: DFW OFFICE CONSTRUCTION,JANUARY 2001 (in square feet) Under Completed Construction CBD 0 207,600 Suburban 1,156,473 1,992,692 Total 1,156,473 2,200,292 Source:Grubb&Ellis as published by the Real Estate Center at Texas A&M Housing The average value of a permitted home in 2000 was $165,700, with 6,287 new homes permitted in the first quarter of 2001. In 2000, 45,800 homes were sold in the Dallas area with an average price of $171,800. Fifty-six percent of households in Dallas County can afford to purchase a median-priced home. In 2000, Dallas ranked first in the nation in number of seniors housing units under construction. 17 North Richland Hills Economic Development Plan One-fifth of renters pay more than 30 percent of their income for housing in the Metroplex area. The average rent per square foot for a Dallas apartment is $.82. The Dallas apartment market maintained a 96.7 percent occupancy rate as of February 2001. There are a number of renovations are underway in the Dallas downtown area to convert offices into lofts to accommodate professionals working downtown. TABLE A-9: PRICE DISTRIBUTION OF MIS HOMES SOLD, FORT WORTH AREA, 2001 (in percent) Northeast Arlington Fort Worth Tarrant County Less than $60,000 5.0 19.7 2.6 $60,000- 79,999 10.8 18.8 7.1 $80,000-99,999 24.1 19.1 12.6 $100,000- 119,999 16.6 11.4 12.7 $120,000- 139,999 12.3 9.6 12.5 $140,000- 159,999 9.7 5.9 10.7 $160,000- 179,999 7.2 4.2 8.4 $180,000- 199,999 4.9 2.9 6.2 $200,000-249,999 4.6 3.7 8.3 $250,000-299,999 2.0 1.9 5.7 $300,000 or more 2.6 2.7 13.1 Source:Real Estate Center at Texas A&M University 18 North Richland Hills Economic Development Plan APPENDIX B: DEMOGRAPHIC OVERVIEW The 1990s were boom years for America's economy. The United States, the State of Texas, and North Richland Hills experienced strong economic growth between the 1990 and 2000 decennial censuses. During the decade, the city's per capita income increased by nearly $10,000 or 60 percent, a full 8 percent higher than the increase for Texas and 12 percent higher than increases in Tarrant County and the Dallas-Fort Worth consolidated metropolitan statistical area (CMSA). A more meaningful measure TABLE B-1: PER CAPITA INCOME 1990-2000 of the increase in per capita %1990 2000 /o Change income can be derived by adjusting 2000 income to Texas $ 12,904 $ 19,617 52.0% 1990 dollars. By deflating Dallas-Ft Worth CMSA $ 15,902 $ 23,616 48.5% wages using the Consumer Tarrant County $ 15,178 $ 2,548 48.6% Price Index, one can measure North Richland Hills $ 15,912 $ 25,516 60.4% the degree to which income Source: U.S. Census Bureau, TIP Strategies,Inc. growth outpaced inflation. Appropriately adjusted, real per capita income in North TABLE B-2: PER CAPITA INCOME IN 1990 DOLLARS Richland Hills increased by 1990 2000 %Change nearly 22 percent in this Texas $ 12,904 $ 14,889 15.4% period, outpacing Texas' Dallas-Ft Worth CMSA $ 15,902 $ 17,925 12.7% increase by more than six Tarrant County $ 15,178 $ 17,114 12.8% percent and exceeding DFW and Tarrant County by nine North Richland Hills $ 15,912 $ 19,367; 21.7% percent. Source: U.S. Census Bureau, TIP Strategies,Inc. North Richland Hills residents' wages moved ahead of the Metroplex and Tarrant County between 1990 and 2000. In 1990, North Richland Hills residents reported higher per capita income than the state, but had income levels very similar to metro and county information. By the 2000 census, NRH residents reported higher average incomes than did residents of Texas, the DFW Metroplex, or Tarrant County. North Richland Hills offers a relatively diverse employment base. According to 2001 statistics, the three largest employment sectors in the community are Trade, Transportation, & Utilities (25 percent), Manufacturing (13 percent), and Business & Professional Services (11 percent). Approximately half of all jobs in North Richland Hills fell within these three sectors. High employment in any one of these sectors may indicate an over-dependence on a single industry or sector, or may point to a strong market cluster built around economies of scale. 19 North Richland Hills Economic Development Plan GRAPH A-1: EMPLOYMENT BY SECTOR, 2001 Nonclassifiable Trade,Transportation& Natural Resources& 0% Utilities Mining 1% 25% State&Federal Govt. ,x Information 3% a9 Other Services 3°k � Manufacturing 13% Construction 6%o Financial Activities Rofessional& Business Services Local Government 11% 9% Education&Health Leisure&Hospitality Services. 10% 10% Source: Texas Workforce Commission North Richland Hills experienced not only economic growth but also an increase in population over the last ten years. NRH grew by nearly 10,000 residents, or approximately 21 percent, between 1990 and 2000. Although this is a high growth rate, it is actually slightly lower than the Texas rate (22.8 percent) and the Tarrant County rate (23.6 percent). The population percentage increase in NRH was significantly less than that of the DFW Metroplex (34.4 percent). NRH was, and is, a predominantly TABLE B-3: POPULATION GROWTH, 1990-2000 white community—much more so than Texas, the Dallas-Fort Worth 1990 2000 %Change Metroplex, or Tarrant County. Texas 16,986,510 20,851,820 22.8% According to the 2000 Decennial Dallas-Ft Worth CMSA 3,885,415 5,221,801 34.4% Census, 83 percent of the Tarrant County 1,170,103 1,446,219 23.6% population was white—higher than North Richland Hills 45,895 55,490 20.9% the corresponding statistics for Source: U.S. Census Bureau Texas (52 percent), 24 percent higher than the DFW Metroplex (59 percent), and 21 percent higher than Tarrant County (62 percent). Like the rest of the country, however, NRH is becoming more diverse, with minorities gaining an additional 7 percent of the community's population during the 1990s. 20 North Richland Hills Economic Development Plan GRAPH B-2: RACIAL&ETHNIC COMPOSITION, 2000 0 O " ',Ili Y va 'I � iL4d�`--p � N 7 i tl v R , q ll e ,1.-,,-....... - „,-, ?. . 1.444,Y k 80% - 2 _ !"--, a, ,"d t " it a„F `;;'a'' ii� , . .,.,:. "^- .:111,,017',14,:f ' �, "ql��I. Aj' ���9 60/o Bbl �,k . 0' °I";' `1 , 13 fi33r` 7�ro, W Gfi 40% tI 4 3-; ' " 1 b,kill m M R '¶ $ [a v a 51" 'q ,IF Mlfil ( --T,� 20°/0 a ` z s 4 " 'a� p � ..' „may y,., 0% H A Texas DFW CMSA Tarrant County North Richland Hills ❑White Hispanic or Latino ■Black or African American ❑Other Source: U.S. Census Bureau A great deal of the growth in Texas has been in its Hispanic population. Through high immigration and fertility rates, Hispanics have increased 6.7 percent as a share of the state's population. When the 1990 census was conducted, Hispanics made up a little more than one-quarter of the population of Texas. By 2000, Hispanics comprised nearly one third of Texas' population. The DFW Metroplex and Tarrant have seen even higher growth, with each locality experiencing over 8 percent growth in this ethnic group. TABLE B-4: RACIAL&ETHNIC COMPOSITION, 2000 (with percent change from 1990) Black or African White Hispanic or Latino Other American Change Change Change Change To in from To in from To in from To in from 2000 1990 2000 1990 2000 1990 2000 1990 Texas 52.4% -8.4% 32.0% 6.7% 11.3% -0.4% 4.3% 2.1% Dallas-Ft Worth CMSA 59.3% -10.6% 21.4% 8.4% 13.5% -0.6% 5.7% 2.8% Tarrant Coun 61.9% -11.6% 19.7% 8.1% 12.5% 0.6% 5.9% 2.9% North Richland Hills 83.3% -7.0% 9.8% 4.1°h 2.6% 0.7% 4.3% 2.2% Source:U.S. Census Bureau 21 North Richland Hills Economic Development Plan North Richland Hills has experienced a similar trend. In the last ten years, the city's Hispanic population has increased by approximately 4 percent to comprise nearly 10 percent of the total population. Although NRH's greatest numeric increase was in the white racial group—with an increase of nearly 5,000 people or 50 percent of total growth—significant growth has occurred among Hispanics as well, with an increase of 2,800 residents or 29 percent of the all growth. The African American population has remained relatively flat by comparison, growing by just 570 total residents or roughly 6 percent of the total. Texas, DFW, and Tarrant County all experienced much higher growth among Hispanics. TABLE B-5: POPULATION GROWTH BY RACE&ETHNICITY, 1990-2000 Black or African White Hispanic or Latino Other American Net Percent Net Percent Net Percent Net Percent Growth Change Growth Change Growth Change Growth Change Texas 606 659 15.7% 2 376 002 61.5% 360 646 9.3% 522 003 13.5% Dallas-Ft Worth CMSA 380 560 28.5% 613 983 45.9% 157 407 11.8% 184 436 13.8% Tarrant Coun 35 563 12.9% 148 844 53.9% 41 684 15.1% 50 025 18.1% North Richland Hills 4 798 50.0% 2 803 29.2% 570 5.9% 14.8% Source: U.S. Census Bureau 22 North Richland Hills Economic Development Plan APPENDIX C: BUSINESS ACTIVITY IN NRH The City of North Richland Hills continues to have a diversified business base with all major sectors represented throughout the community. A recent comparison shows approximately 85% of NRH businesses to be in the Services and Retail sectors. In 1999 North Richland Hills had 1,003 businesses. A tabulation of businesses taken in late December, 2002 shows a 17% increase in total businesses with most of the growth in the Services sector (Table C-1). TABLE C-1: MAJOR SECTOR BUSINESS GROWTH, 1999-2003* Major Industry Growth 1999 2003 Change CONSTRUCTION 66 67 +1 MANUFACTURING&WHOLESALE 45 46 +1 RETAIL 256 265 +9 SERVICES 597 749 +152 GOVERNMENT&CIVIC 39 50 +11 TOTAL 1003 1177 +174 *City of North Richland Hills Economic Development Department Table C-2 North Richland Hills Business Growth, 1999-2003 itemizes each industry group by relative change in the number of businesses over the past four years. Major growth is dominated by Health Care, Administrative, Professional Offices, Finance Et Insurance, Miscellaneous Retail and Restaurants. Declining businesses in NRH include Clothing, Home Furnishings and Convenience Stores. Health Care continues to be a growing industry for NRH and the importance of having a growing North Hills Hospital helps spawn many other support businesses throughout the city. NRH continues to grow in the Professional and Administrative office sector. Continued traffic congestion and quality of life issues throughout the Metroplex seem to encourage citizens to want to move their place of business closer to home. North Richland Hills has certainly benefited from this trend with a growing population and employment sector and opportunities to live and work locally. The City of North Richland Hills is seeing more trends toward the Service Sector and away from Retail as the city matures and other surrounding cities garner support for local retail. A recent demographic study just completed by the Birdville Independent School District in fact indicates this trend will continue as planned commercial and retail sites have been overstated on comprehensive land use plans in all of the cities encompassing BISD. New retail growth will have to draw from a larger regional audience to be successful. The recent construction of Home Depot, Super Wal-Mart and Super Target are evidence of this trend. The BISD study also points to pressures to convert commercial land uses to residential uses to create a new population for new retail and commercial uses to grow. 23 North Richland Hills Economic Development Plan TABLE C-2: NORTH RICHLAND HILLS BUSINESS GROWTH, 1999-2003* Code Industry 1999 2003 Change 62 HEALTH CARE 114 142 +28 55-56 ADMINISTRATIVE OFFICES 28 54 +26 52 FINANCE AND INSURANCE 69 90 +21 54 PROFESSIONAL OFFICES 35 56 +21 453 MISCELLANEOUS RETAIL 29 46 +17 61 EDUCATIONAL SERVICES 12 26 +14 722 RESTAURANTS 108 120 +12 811 AUTOMOTIVE SERVICES 66 76 +10 443 ELECTRONICS 14 21 +7 445 FOOD STORES 16 22 +6 92 GOVERNMENTAL 10 16 +6 446 PERSONAL CARE 12 17 +5 532 RENTAL 7 12 +5 813 CIVIC AND RELIGIOUS 29 34 +5 5312 REAL ESTATE 11 15 +4 441 AUTOMOTIVE RETAIL 22 26 +4 452 GENERAL MERCHANDISE 7 11 +3 51 INFORMATION 7 10 +3 48 TRANSPORTATION 3 6 +3 53111 APARTMENTS 28 30 +2 53113 MINI WAREHOUSES 9 11 +2 31-33 MANUFACTURING 24 26 +2 721 LODGING 5 7 +2 812 PERSONAL SERVICES 83 85 +2 23 CONSTRUCTION 66 67 +1 42 WHOLESALE 11 12 +1 71 ENTERTAINMENT 15 15 0 451 SPORTING GOODS/BOOKS 29 28 -1 444 BUILDING MATERIALS 17 12 -5 49 WAREHOUSING 7 2 -5 447 CONVENIENCE STORES 37 29 -8 442 HOME FURNISHINGS 31 22 -9 448 CLOTHING 42 31 -11 TOTAL 1003 1177 +174 *City of North Richland Hills Economic Development Department Table C-3 indicates major business growth in percentage change. In the past four years new business growth is dominated by the service sector including educational, professional, finance & insurance and health care. Strong retail businesses include miscellaneous retail, electronics and restaurants. 24 North Richland Hills Economic Development Plan TABLE C-3: GROWING BUSINESSES IN NRH 1999-2003* Code Industry 1999 2003 Change 61 EDUCATIONAL SERVICES 12 26 +116% 55-56 ADMINISTRATIVE OFFICES 28 54 +93% 5452 PROFESSIONAL OFFICES 35 56 +60% 453 MISCELLANEOUS RETAIL 29 46 +59% 443 ELECTRONICS 14 21 +50% 52 FINANCE AND INSURANCE 69 90 +30% 62 HEALTH CARE 114 142 +25% 811 AUTOMOTIVE SERVICES 66 76 +15% 722 RESTAURANTS 108 120 +11% *City of North Richland Hills Economic Development Department Table C-4 Declining Businesses in NRH, 1999-2003, shows a trend of consolidation of building materials and home furnishings into large super stores such as Home Depot at the expense of smaller local stores. Smaller clothing and convenience stores have also experienced decline with the growth of larger category killers. TABLE C-4: DECLINING BUSINESSES Code Industry 1999 2003 Change 49 WAREHOUSING 7 2 -71% 444 BUILDING MATERIALS 17 12 -29% 442 HOME FURNISHINGS 31 22 -29% 448 CLOTHING 42 31 -26% 447 CONVENIENCE STORES 37 29 -22% *City of North Richland Hills Economic Development Department Table C-5 shows how business activity is spread among the major thoroughfares throughout the city over the past 5 quarters. Grapevine Highway, Rufe Snow and Davis Boulevard clearly has the most business activity in NRH. Net changes are declining for businesses along Loop 820, Davis, Bedford Euless and Rufe Snow while positive growth is occuring along Grapevine Highway, North Tarrant, Mid Cities and Precinct Line. This chart only includes business activity over the last quarter of 2001 and the entire year of 2002. However, it is evident that construction activities along Loop 820 and Rufe Snow definitely impact businesses. It is also evident that new residential rooftops over the past few years in the northern portion of NRH have helped fuel new growth along North Tarrant Parkway and Mid Cities Boulevard. Positive business activity along Grapevine Highway continues to support this thoroughfare as an important business corridor in North Richland Hills. 25 North Richland Hills Economic Development Plan TABLE C-5: 2002 BUSINESS ACTIVITY ON MAJOR THOROUGHFARES* Business Business Total Net Major Thoroughfares Openings Closings Activity Change LOOP 820 6 14 20 -8 DAVIS BOULEVARD 20 26 46 -6 BEDFORD EULESS ROAD 6 9 15 -3 RUFE SNOW 32 34 66 -2 GLENVIEW 2 4 6 -2 HARWOOD 1 2 3 -1 PRECINCT LINE 4 1 5 +3 MID CITIES BOULEVARD 5 0 5 +5 NORTH TARRANT PARKWAY 7 0 7 +7 GRAPEVINE HIGHWAY 45 38 83 +7 *City of North Richland Hills Economic Development Department The above tables are only a specific look in time but shows evidence that major roadway construction has a definite impact on business moving in and out of the city. This analysis shows that North Richland Hills has a diversified business base, but evidence appears to point out that continued business growth cannot be solely supported by the local population. To continue to be a growing and diversified business base, the City of North Richland Hills will have to compete on a regional basis to bring new visitors and investment to the community. 26 North Richland Hills Economic Development Plan APPENDIX D: ECONOMIC DEVELOPMENT STRATEGIES & ACTION ITEMS STRATEGIES& ACTION ITEMS PRIORITY �i aa� �h ' III „,?: 1 _— 01, "1 A41 .17 '*"44;1 l' v A. Targeting Reuse of Vacant Retail Primary • Update inventory of major retail centers • Update demographic information from 2000 census for areas surrounding major centers • Conduct personal interviews with owners and leasing agents of retail centers • Develop specific target industry list for each major center • Conduct marketing campaign to target industries B. Redevelop South Grapevine Highway Primary • Facilitate completion of Corridor Plan by Leland Consulting Group and HNTB Planning Firm: -Stakeholder Involvement -Market Analysis -Community Consensus Building -Feasibility Study -Redevelop Plan • Implement Corridor Plan and components C. Redevelop North Hills Mall Secondary • Update tax abatement, sales tax rebate grants, and infrastructure incentives for mall revitalization • Perform study of South Grapevine Highway to improve development surrounding the mall • Consider an"Entertainment District”designation for North Hills Mall that would allow for mass gatherings, events and celebrations • Actively encourage current developers and seek out potential investors and family entertainment businesses to locate in North Hills Mall D. Redevelop Loop 820 Land Uses Secondary • Establish a Loop 820 Task Force • Monitor widening of Loop 820 and provide staff input regarding design of roadway, exit ramps, final design, and landscaping of project • Determine ways to"dress up"medians along entry points to the city • Conduct study to determine the highest and best use of frontage along Loop 820 and transitional uses and buffers against existing neighborhoods • Establish an overlay district along Loop 820 • Prospect for new businesses from the city's target industry list to fill-up vacant buildings and land 27 North Richland Hills Economic Development Plan STRATEGIES& ACTION ITEMS PRIORITY E. Redevelop Existing Neighborhoods Secondary • Continue implementation of Neighborhood Identity Program • Seek to register and build database on all neighborhood and homeowners groups in the city • Develop individual neighborhood needs assessment • Promote basic property maintenance and build peer support for encouraging higher standards in neighborhoods • Promote neighborhood programs and partnerships between city, neighborhoods, businesses and volunteers • Establish recognition awards for neighborhoods, businesses and volunteer groups , e r 9UF �12Y�i'� 3F .m e �a, ' ; ;s<tow' A. Retention of Existing Businesses Primary • Develop formal program for visiting all major employers, new businesses and troubled businesses • Develop target industry list of businesses that provide products and services that support existing business in NRH • Implement Redevelop plans for aging shopping centers and business parks • Host annual business appreciation luncheon • Communicate with existing businesses through NRH UpC/ose newsletter • Promote Buy NRH Program and local businesses doing business with each other • Promote NRH businesses by encouraging active participation in NE Chamber B. Support Diversified Business Recruitment Primary • Support NE Tarrant"Quality of Life" Foundation (NRH, RH, Haltom City, Watauga, BISD, Keller ISD, NE Chamber) • Update area-wide demographic data base • Develop a target industry database • Develop advertising and image campaign • Attend appropriate regional and state trade shows • Send quarterly newsletters to brokers and prospective businesses • Look for ways to share business recruiting efforts • Ensure accountability to all stake holders—cost/benefit analysis on all expenses, quarterly reports to all entities, annual reassessment of goals and objectives C. Facilitate Street Reconstruction Projects Secondary • Provide construction updates to businesses before and during construction projects • Implement cooperative marketing plan to drive more customers to affected businesses • Make temporary changes to the sign ordinance during construction • Work with police and public works departments to decrease congestion and increase traffic flow 28 North Richland Hills Economic Development Plan STRATEGIES& ACTION ITEMS PRIORITY N • i ri°r„ -„ai ,.ra 11 n .'r "'.' iil iRfi{ A. Promote High Development Standards Primary • Continue to review and update aesthetic ordinances and regulations as needed • Conduct annual survey of area cities to compare development standards • Implement city image study • Consider annual home and business improvement fair B. Promote Commuter Rail Service Primary • Provide semi-annual status report to city council • Organize local task force to monitor progress • Determine best station location • Active participation and discussions with COG regarding future commuter rail service in NRH • Develop rail station plan to promote access and surrounding land use development C. Enhance Davis Boulevard Primary • Establish a plan for Davis Boulevard which includes components relating to city image study and streetscape improvements • Consider Overlay District for implementing specific development standards along Davis Boulevard D. Support the City Image Study Primary • Update ordinances and development standards that promote the city image study • Assist in the implementation of a public art program E. Promote the Smithfield Historical Area Secondary • Complete Smithfield study • Implement Smithfield Plan and components • Actively promote location for potential rail stop in Smithfield area F. Promote Tourist and Entertainment Venues Secondary • Continue to promote existing NRH2O, IronHorse, Blue Line, Mountasia • Seek enhanced motel and convention facilities • Promote the redeveloped North Hills Mall as a family entertainment center • Create a marketing campaign to promote family oriented visitors and entertainment services • Develop a travel brochure to distribute throughout D/FW and beyond • Place directional signs and attractive light pole banners along major corridors that promote events and entertainment venues • Work with TXDOT to get signage at exits directing motorists to food, lodging and entertainment venues G. Actively Market to Improve the Image of NRH Secondary • Review current marketing initiatives • Conduct image survey of regional business leaders • Determine desired image based on community vision • Design image campaign • Begin implementation of image campaign 29 North Richland Hills Economic Development Plan STRATEGIES & ACTION ITEMS PRIORITY H. Promote the HomeTown Development Secondary • Work with brokers and developers to promote construction of commercial buildings in HomeTown • Facilitate construction of additional homes for the second phase of residential development • Actively promote HomeTown concept and development through joint marketing efforts and word of mouth at trade shows and community events • Facilitate opening of HomeTown Lakes Park and construction of library, recreation center and conference/performing arts center 30 North Richland Hills Economic Development Plan