Tag Archives: quality jobs

arizona flag 2011

Legislation to help re-establish Arizona as an economic leader

Gov. Jan Brewer today called the Legislature into Special Session for the consideration of a comprehensive plan to put Arizona back to work. Known as the Arizona Competitiveness Package, the proposal includes a mix of targeted business incentives and broad tax reforms designed to rev the Arizona economy.

“The Competitiveness Package will make Arizona a magnet for business expansion, relocation, capital formation and investment,” Brewer said. “This is our roadmap for future economic growth.” Improving Arizona’s competitiveness in the global marketplace is the first of the governor’s Four Cornerstones of Reform that she unveiled earlier this year. The centerpiece of the plan is her creation of an Arizona Commerce Authority.

Replacing the Arizona Commerce Department and its hodge-podge of more than 50 mandates and responsibilities, the Commerce Authority will have a single focus: the retention and recruitment of quality jobs for Arizona. The Commerce Authority will be overseen by a public-private board comprised of Arizona leaders in business and policy.

Designed to be nimble and flexible in responding to economic opportunities, the board will be armed with a $25 million deal-closing fund to help land some of the nation’s most highly-sought corporations and business ventures for Arizona. No dollars will be awarded prior to performance, and “claw-back provisions” and an independent, 3rd-party economic analysis will ensure that companies awarded public funds meet their promised obligations.

“This package of tax reforms and targeted investments will give Arizona the tools it needs to compete for economic development on the global stage,” said Don Cardon, president and CEO of the Arizona Commerce Authority. “Arizona can’t afford to wait for economic growth. We’re going to aggressively pursue quality jobs and stable industries that will become the bedrock of this state’s economic future.”

The Arizona Competitiveness Package is focused on both urban and rural job creation, and is intended to make this state a destination for business growth and development. Specific aspects of the plan include:

• The creation of a Quality Jobs Program, with corporate tax credits of up to $9,000 for each qualifying new job. ($3,000 per job, per year, with a 400-job cap).

• An increase in the electable state corporate income-tax sales factor to 100 percent, up from the current 80 percent. This will encourage firms to establish headquarters and manufacturing centers in Arizona.

• Re-authorization of the Arizona Job Training Program, providing job-specific, reimbursable grants to train employees for new careers.

• A four-year, phased-in reduction of the state’s corporate income tax to 4.9 percent, beginning in January 2014. This will give Arizona the nation’s fifth most competitive corporate income-tax rate.

• A 10 percent increase in the state’s Research & Development tax credit, encouraging further collaboration between Arizona’s research universities and the private sector.

• A 5 percent acceleration of the depreciation schedule for business personal property, spurring purchases of new equipment and other capital investments.

The Arizona Competitiveness Package is consistent with Brewer’s long-held call for corporate tax relief that would be phased-in after Proposition 100 expires and the state’s budget is on firmer footing.

“The development of a stable and growing economy is the key to Arizona’s future,” she said. “It will provide good jobs for our citizens and revenue for the state programs and services everyone enjoys. I urge legislators to act quickly in enacting these reforms and furthering Arizona’s economic recovery.”

Barry Broome, GPEC president and CEO - AZ Business Magazine Jan/Feb 2011

GPEC’s President And CEO, Barry Broome Talks About Getting The Valley’s Economy Back On Track

Give us a look ahead at Greater Phoenix’s major industries.

The emergence of solar and renewable energy has been, and will continue to be, a big opportunity for us. We need to learn, as a market, how to be involved in new technology initiatives. There are going to be wins, losses and volatility, but the renewable space is going to continue to grow.

From January to November 2010, 1,350 jobs and $153 million in capital investment have been created. Renewable energy projects now make up about 28 percent of the companies looking at our region.

In addition to the renewable energy industry, health care, life sciences and information communication technology will expand next year. All of this is plagued by inconsistency in the capital markets. There is not enough private equity and there is no real IPO (initial public offering) market. Whenever you are building a new technology, it is really important that capital markets are responsive.

What kinds of jobs does GPEC look to attract and grow in Greater Phoenix?

We’re probably having the best year for attracting engineers and professional jobs that GPEC has ever had as an organization. These quality jobs are fueled by the fact that renewable energy is the new technology space.

GPEC is performing at a high level, even though the country is still in a recession. We have already driven 4,400 jobs to Greater Phoenix from July to October 2010. Of those jobs, 66 percent provide high wages. We want to see even more high-quality jobs this year. Hopefully, we will continue to drive regional headquarters, and professional services and technology jobs in the region.

GPEC talks a lot about competitiveness. Why is this important, and what specifically is GPEC doing to make the region more competitive?

For a long time, GPEC has focused efforts on increasing the region’s competitiveness. It’s absolutely critical because every major investment is analyzed by people with very astute backgrounds for its financial implications, talent and long-term viability. The most common differentiating point for a market is its competitive position. We look at the cost of doing business, the speed of doing business, ability to attract talent and access to capital.

GPEC has several initiatives to push Greater Phoenix into more globally competitive circles. The region — historically — has relied on retail, construction and real estate sectors to our own detriment. We have a high-quality job formula. Arizona will increase its competitive position with GPEC’s proposal to drive large company expansions, increasing our local, talented work force, and improving our tax climate. Working on job creation legislation with Tucson Regional Economic Opportunities (TREO), rural partners, the Arizona Commerce Authority and chamber partners is going to be really important this year. GPEC also works closely with the Arizona Chamber of Commerce, Arizona Small Business Association, Greater Phoenix Chamber of Commerce, Greater Phoenix Leadership, and our communities and mayors.

It wasn’t that long ago, just four years ago, that Arizona was ranked No. 1 in the country for job growth. Now, we have fallen to almost last in the country — 48th place. We need to understand how to improve the environment for business and compete in new technologies and industries. That is going to make the difference for Greater Phoenix as it recovers from the housing slump and shifts the job base away from the real estate industry to export industries.

Arizona Business Magazine Jan/Feb 2011

Bill Pepicello, chairman of GPEC and president of University of Phoenix - AZ Business Magazine Jan/Feb 2011

Q&A Bill Pepicello, GPEC Chairman And University Of Phoenix President

What are your top goals as chairman of GPEC?
First, and foremost, my goal is to build on the momentum that Michael Bidwill, GPEC’s immediate past chairman, and Barry Broome, GPEC’s president and CEO, have driving the region toward new high-quality jobs. … I also want to expand on their vision and ideas to build a healthy economy. Many of the pieces of the puzzle are coming together now. Arizona’s Renewable Energy Tax Incentive Program is driving hundreds of new jobs and millions in capital investment. In addition, many leaders are focused on moving Arizona’s economy beyond its former reliance on the construction, retail and real estate industries.

How would you characterize Greater Phoenix to companies looking to expand here?
Greater Phoenix is a strong investment decision for companies. We have ground-floor business opportunities for companies looking for the right place to expand their businesses. Renewable energy companies and bioscience companies do very well here. The semiconductor and aerospace industry are intertwined in Arizona’s history. Also, Greater Phoenix is an ideal location to launch a business and export products to California, which has a more expensive business environment. … We have highly skilled labor, an affordable operating environment and new available buildings.

Why is GPEC targeting the renewable energy industry?
The industry provides high-quality jobs for local communities, injects millions in capital investment, and draws other companies that serve as suppliers. … GPEC will continue to focus on renewable energy policy and the state’s aggressive Renewable Energy Standard that appeals to companies. Michael will continue to play a pivotal role in advancing the renewable energy industry, as Gov. Brewer has appointed him to lead the Arizona Commerce Authority’s Renewable Energy Growth Sector Committee.

What is GPEC doing this year to advance the region?
We are partnering with the Legislature to bring more high-quality jobs to Arizona, and we are working with lawmakers to modernize the state’s Enterprise Zone to draw more companies here. We are continuing with rebranding efforts to move Arizona’s national image beyond the immigration debates. I believe our efforts to continue diversifying the region’s economy will have a lasting impact for the region and Arizona. GPEC is working very hard to strengthen the economy. We have many tasks to accomplish this year but we are definitely up for the challenge.

AZ Business Magazine Jan/Feb 2011

Arizona Commerce Authority

Cardon Named CEO, President Of State’s New Commerce Authority

Don Cardon today was officially named CEO and President of the newly formed Arizona Commerce Authority by Gov. Jan Brewer at the ACA board meeting at the Arizona Capitol.

Brewer named Cardon Director of the Arizona Department of Commerce in May 2009. On June 29, 2010, Brewer issued an Executive Order establishing the ACA and transitioning out the Department of Commerce. Cardon was on the committee to select the new head of the ACA. The committee looked no further than its backyard.

The 35-member, private sector ACA will work to align diverse assets and opportunities within the state to compete economically in both domestic and international markets to create high-quality jobs for the Arizona residents.

Cardon’s experience as an economic developer is vast. He worked in a rural Washington state community attracting international companies engaged in high-tech manufacturing, electronics and energy; he is a former entrepreneur, serving as President and CEO of Cardon Development Group, creating low-income housing tax credit projects throughout Arizona.

Cardon also helped initiate the formation of Phoenix Future, assembling business, political and financial leaders to create CityScape, a mixed-use development in downtown Phoenix. Cardon is experienced in financial planning, zoning activities, marketing and partnership development.