HomeMy WebLinkAbout11-14-16 CC Mtg - A1. Resolution 4730, 2016 Economic Development Update1
Commission Memorandum
REPORT TO: Honorable Mayor and City Commission
FROM: Brit Fontenot, Director of Economic Development
SUBJECT: Resolution 4730, Adoption of the City of Bozeman’s 2016 Economic
Development Strategy Update
MEETING DATE: November 14, 2016
AGENDA ITEM TYPE: Action
RECOMMENDATION: Listen to the presentation, ask questions and engage in a discussion
with the Economic Development Council members, staff and the consultant concerning the
proposed 2016 Economic Development Strategy Update, adopt Resolution 4730 and direct staff to implement the 2016 Update as appropriate. (Exhibit A)
BACKGROUND:
In the summer of 2009, the City of Bozeman approved its first Economic Development
Plan (the “2009 Plan”). The 2009 Plan was the first concerted effort by the City to draft and
implement a strategy focused specifically on economic development. As such, the 2009 Plan created several aspirational goals and provided a structural framework for implementing the plan.
Over the past several years, 2009 – 2016, under the guidance of the City Commission and the
appointed Economic Development Council, staff has implemented several components of the 2009
Plan. The local economy is a rapidly evolving system and it became apparent, as the City was
easing out of the 2006 recession, that now was the time to update the City’s economic Development strategy.
There are three primary reasons why an update is necessary. First, many of the 2009 Plan
components have been integrated, as resources have allowed, into the current practices and
programs of the Economic Development Department. Other elements of the 2009 Plan remain difficult to track and measure success in any reasonable manner. Second, economic conditions in Bozeman have changed dramatically since 2009, including impacts of the recession, increased
pace of growth, renewed interest in infrastructure development, investment activity in the TIF
districts and increased interest in workforce and business development. Finally, economic
development in the City requires a renewed and tighter focus on what the City can do to encourage investment in the community and support economic growth.
It is with these intentions in mind, that in the late winter of 2015 the Economic
Development Council (the “EDC”) and a subcommittee of local business leaders began refining
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the 2009 Plan vision and values, authoring a set of guiding values and principles and creating
strategic imperatives that set the stage for an update by broadly defining the scope of the 2016
Economic Development Strategy Update (the “2016 Update”). (Exhibit B)
The 2016 Update is based on the following EDC guiding principles:
I. Economic Vision
Our community strengthens and diversifies the local economy by supporting business
sectors that create & sustain mid- to high-paying jobs, enhancing the high quality of life in
the greater Bozeman area.
II. Guiding ED Values and Principles
• Strengthening and diversifying the local home-grown economy
• Increasing economic activity that improves our community’s prosperity • Supporting innovation and encouraging growth in mid-to-high wage sectors
• Facilitating the creation of mid-to-high paying jobs/high quality employment to
match the high quality of life
• Environmental responsibility
• Intentional growth planning
III. Strategic Imperatives
1. Support retention and growth of existing businesses, while welcoming and encouraging new businesses
a. Pursue, support, and provide assistance for business start-up, expansion, and
business recruitment efforts that strengthen economic clusters that increase
prosperity in the community. b. Support and promote entrepreneurial efforts and business expansion and retention
through collaboration with area economic development agencies and organizations.
c. Leverage MSU-Bozeman research and technology transfer resources and assets.
2. Invest in infrastructure as a mechanism to drive economic development
Invest in infrastructure as a mechanism to drive economic development at safe and
efficient levels to satisfy the current and future needs for economic expansion. The
condition of streets and sidewalks, water and sewer, lighting, gas and electric distribution, fiber optic communications, and solid waste disposal all affect how effectively and efficiently businesses conduct their operations or whether a business
decides to grow or relocate to the area.
3. Support education and workforce development initiatives to provide businesses with qualified workers.
a. Support Montana State University and Gallatin College programs encouraging
alignment with the workforce needs of supported sectors.
b. Support federal, state, county and local workforce development initiatives.
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Appropriate as an initial planning document, the 2009 Plan broadly guides some of the
City’s economic development activities but lacks focus on where the City should allocate resources
with the highest potential to return on the public investment of staff time and departmental funds.
(Exhibit C) The 2016 Update suggests specific staff activities and additional resources, if warranted, while recognizing the importance of strategic partnerships and encourages the City to
focus on what the City does well while supporting other organizations and resource providers that
may be in a better position to provide additional or alternative economic development services to
the community.
2016 Update Matrix, based on the strategic imperatives listed below, identifies several specific areas where economic development staff is focusing, or could focus resources. The three primary areas include Expanding the Base, Supporting Business and Regional Connections. In
each of the three action areas there are examples of sustained activities based upon the broad
direction of the 2009 Plan. The 2016 Update recognizes and legitimizes the significance of those
past and ongoing efforts while suggesting that any additional emphasis on these identified high-impact areas of importance will require additional resources.
The 2016 Update attempts to incorporate the revised and refined guiding principles into
the strategy using updated data to illustrate current conditions, future trends and achievable
outcomes based on the Commission’s desires to facilitate mid- to high-wage job creation and
diversification the local economy through; 1) supporting the retention and growth of existing businesses, the backbone of our local economy, 2) investing in infrastructure to drive economic
development, because infrastructure is economic development and 3) leveraging education and
workforce development initiatives to increase and attract additional talent to the area. Thus the
Commissions goals for economic development and the 2016 Update are aligned in terms of vision,
focused in terms of action and accountable in terms of desired and measurable outcomes.
UNRESOLVED ISSUES: None at this time.
ALTERNATIVES: As proposed by the Commission
FISCAL EFFECTS: Adoption of Resolution 4730, the 2016 Update, does not obligate the City
to invest additional resources into any of the plan recommendations. The 2016 Update is built as
a strategy document that identifies the areas of advancement over the past several years since the
2009 Plan was adopted and provides direction and recommendations, based on input from private
business leaders, EDC members, staff and our consultant, to advance our economic development efforts over the next 3 to 5 years. If the Commission determines that economic development efforts
should increase, and thus corresponding resources, that discussion will be part of the yearly budget
process.
Exhibits:
Commission Resolution 4730;
Exhibit A - Economic Development Strategy Update;
Exhibit B – Economic Development Vision and Values; and Exhibit C – 2009 Economic Development Plan Implementation Matrix with notes.
Report compiled on: November 1, 2016
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COMMISSION RESOLUTION NO. 4730
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF BOZEMAN, MONTANA, ADOPTING THE 2016 ECONOMIC DEVELOPMENT STRATEGY UPDATE.
WHEREAS, On August 3, 2009, via Commission Resolution 4195, the Bozeman City
Commission (the “Commission”) adopted Bozeman’s 2009 Economic Development Plan (the
“2009 Plan”); and WHEREAS, the 2009 Plan established an advisory committee, the Economic
Development Council, to review the City of Bozeman’s development review and permitting
process, evaluate development issues and make recommendations for policy and procedure changes to the Commission; and
WHEREAS, the 2009 Plan designated a qualified city employee with economic
development responsibilities and a role as the community business advocate in coordination with
the Economic Development Council on the implementation of the 2009 Plan; and WHEREAS, the recommended priorities identified in the 2009 Plan’s Implementation
Matrix that could be addressed and completed have been; and
WHEREAS, local economic conditions present upon adoption of the 2009 Plan have
changed;
WHEREAS, the Economic Development Council led the effort to coordinate internal and external stakeholders and supports the 2016 Economic Development Strategy Update (the
“2016 Update”) and the recommendations contained therein; and
WHEREAS, the Commission remains committed to facilitating mid- and high wage job growth and economic strength and diversification in the City and the region through updated and timely economic development planning, strategy and policy updates; and
WHEREAS, the Commission supports the primary tenets of the 2016 Update:
a) retention and growth of existing businesses, while welcoming and encouraging new businesses; and
b) investments in infrastructure as a mechanism to drive economic
development; and
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c) education and workforce development initiatives to provide businesses with
qualified workers.
NOW, THEREFORE, BE IT RESOLVED by the City Commission of the City of
Bozeman, Montana, that:
Section 1
The 2016 Economic Development Strategy Update is hereby adopted and shall be as
follows:
See Exhibit A.
Section 2
Effective Date.
This resolution shall be in full force and effect upon passage.
PASSED AND APPROVED by the City Commission of the City of Bozeman,
Montana, at a regular session thereof held on the 14th day of November, 2016.
CARSON TAYLOR
Mayor
ATTEST:
ROBIN CROUGH, MPA City Clerk
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APPROVED AS TO FORM:
GREG SULLIVAN City Attorney
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Acknowledgements
Bozeman City Commission
Mayor Carson Taylor
Deputy Mayor Cynthia Andrus
Commissioner Chris Mehl
Commissioner I-Ho Pomery
Commissioner Jeff Krauss
Economic Development Council
Mayor Carson Taylor, Commission Liaison
Erik Garberg
Steve Holland
Chris Kukulski
Kris Kumlien
Rebecca Marhurin
Cheryl Ridgely
Daryl Schliem
Economic Development Council Subcommittee of Local Business Leaders
Terry Alborn
Jim Ness
Alistair Stewart
Penny Zacharisian
Economic Development Department
Brit Fontenot
David Fine
Prepared By
Leland Consulting Group, Inc.
610 SW Alder Street, Suite 1008
Portland, Oregon 97205
503.222.1600
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Table of Contents
Introduction ..................................................................................................................................................................... 1
What is Economic Development? ........................................................................................................................ 2
Talent ........................................................................................................................................................................... 6
Skilled Workforce ...................................................................................................................................................... 7
What is the Benefit of an Economic Development Vision and Strategy? ................................................. 8
Background .................................................................................................................................................................... 9
Stakeholder Interview Themes .............................................................................................................................. 9
Citywide Survey Themes ........................................................................................................................................ 10
Business Owner Survey Themes .......................................................................................................................... 11
Montana Photonics Industry Alliance Member Survey (2014) ..................................................................... 14
Strengths, Weaknesses, Opportunities, and Challenges (SWOT) ............................................................... 15
Economic Profile .......................................................................................................................................................... 16
Population Growth .................................................................................................................................................. 16
Employment Growth .............................................................................................................................................. 17
Commute Patterns .................................................................................................................................................. 17
Median Age .............................................................................................................................................................. 18
Distribution of Employment.................................................................................................................................. 18
Income Distribution ................................................................................................................................................ 19
Education Attainment............................................................................................................................................ 20
Industry Clusters ........................................................................................................................................................... 21
Photonics ................................................................................................................................................................... 21
Software/IT ............................................................................................................................................................... 24
Outdoor .................................................................................................................................................................... 25
Tourism/Recreation ............................................................................................................................................... 27
Biotechnology ......................................................................................................................................................... 29
The Strategy ................................................................................................................................................................. 32
Current Strategy ..................................................................................................................................................... 32
Strategy Update ...................................................................................................................................................... 32
Goal 1: Expand the Existing Base ........................................................................................................................ 33
Goal 2: Support Business ...................................................................................................................................... 35
Goal 3: Regional Connections ............................................................................................................................. 36
Appendix A: Action List
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Introduction
The modern global economy consists of rapidly changing market trends.
The one economic certainty that pertains to any industry is the increasing
need for skilled talent. Unfortunately, complex issues driving income
stratification and workforce skills gaps are making it more difficult for all
citizens to realize positive personal economic growth in keeping with
business growth. In order to plan for this modern economy, communities
must consciously foster a diverse economic base and skilled workforce to
weather inevitable negative and positive cycles.
Coupled with global economic trends, the city of Bozeman is growing
rapidly, which introduces new challenges regarding affordable housing,
traffic, and public service provision. It is important for the City to
consciously manage growth aligned with the desired economic base in
order to retain the small town and outdoor qualities that make Bozeman
unique, while remaining competitive in the global modern economy.
Finally, city government plays a unique and distinct role in economic
development. They are the key stakeholder among many engaged
organizations that significantly invests in infrastructure and guides land use
policy. Fortunately, the City of Bozeman has a strong culture poised to
facilitate collaboration among departments including public works, finance
and community and economic development to thoughtfully align
objectives that foster a healthy economic base.
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What is Economic Development?
Economic development can be defined as efforts that seek to improve the economic well-being and
quality of life for a community by creating and/or retaining middle and high income jobs and
supporting or growing incomes and the tax base through diversification of the local economy. These
jobs are generally defined as two different sectors with distinct needs in terms of workforce and
business location. In addition, the City must provide different types of support and investments for
each sector. These sectors are distinguished for clarification regarding strategy objectives and
actions.
Traded Sector vs. Local Sector Jobs
Traded sector (also referred to as basic sector) businesses include industries and employers which
produce goods and services that are consumed outside the region where they are produced and
therefore bring in new income to the area (e.g., outdoor gear, photonics, software). Workers in the
traded sector tend to be better educated, work more hours, and earn higher average wages than
local sector business.
As the traded sector increases employment and wages, it also enables entrepreneurs to develop
skills and resources to foster innovation and start new businesses and increase employment
opportunities. Furthermore, certain traded sector companies foster a supply chain effect that create
the need for additional companies to supply components of a product that is manufactured.
Tourism is a unique traded sector industry to Bozeman in that it brings new income into the region
and it leverages Yellowstone National Park as well as numerous outdoor assets not found elsewhere
in the United States.
Local sector business consists of industries and firms that are in every region. They produce goods
and services that are consumed locally in the region where they were made, and therefore circulate
existing income in the area (e.g., drug stores, physician offices, restaurants). These businesses are
important as they make a community distinct and provide amenities to attract young professionals
and families that drive the new economy. A sampling of traded vs. local sector businesses in the
Bozeman region is indicated in Figure 1.
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Figure 1. Representative Traded Sector and Local Sector Bozeman Businesses
Traded Sector Local Sector
Table 1 highlights the average wage difference between traded sector jobs and local sector jobs in
the U.S. Also of note is the difference between Gallatin County and U.S. average wages. The
community is well aware of this disparity and that it is currently an advantage for employers.
However, business leaders interviewed as part of this economic development strategy process
expressed an understanding that this is not a healthy trend. For businesses to continue to attract a
highly skilled workforce, there need to be more companies here. When there is a larger job base, it
is more attractive to employees because they have options for career growth. In turn, once the
employment base grows, competition will occur and ultimately increase wages. Montana is starting
to realize gains in this area with real median household income increasing by 6.8 percent between
2014 and 2015 per American Community Survey statistics.
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Table 1. 2015 Annual Average Wages by Industry Sector
NAICS Industry Sector United States
Average
Wage 2015
Gallatin County
Average Wage
2015
Mesa County, CO
(City of Grand
Junction) Average
Wage 2015
Traded Sector
55 Management of
Companies & Enterprises
$116,745 $60,078 $101,797
51 Information $95,038 $56,541 $44,836
54 Professional, Scientific, &
Technical Services
$ 89,785 $66,648 $53,640
42 Wholesale Trade $ 73,363 $56,074 $55,629
31-33 Manufacturing $64,305 $41,516 $43,293
Local Sector
23 Construction $57,009 $46,908 $49,377
61 Education Services $47,968 $25,908 $21,404
62 Health Care & Social
Assistance
$47,296 $44,891 $45,897
71 Arts, Entertainment,
Recreation
$36,128 $25,840 $16,454
44-45 Retail Trade $29,742 $29,319 $27,194
72 Accommodation & Food
Services
$19,415 $18,307 $16,888
Source: Quarterly Census of Employment and Wages - Bureau of Labor Statistics, May 2016.
The lower average wages in Gallatin County are further impacted by the higher cost of living in
Bozeman as compared to similar communities as identified in the following table. As an example,
Grand Junction, CO with a similar size population as Bozeman has similar average wages as
indicated in Table 1. However Grand Junction has a lower Cost of Living Index score as identified in
Table 2, which provides more purchasing power with the wages. The composite Cost of Living Index
score is based on six categories – housing, utilities, grocery items, transportation, health care, and
miscellaneous goods and services. The national average composite index is set at 100 each period;
so the index conveys relative price levels at a specific point in time.
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Table 2. Cost of Living Index Results (Q2 2016)
Source: Prospera Business Network, September 2016.
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Talent
The national economy is becoming increasingly more talent/knowledge-based than resource-based
meaning people over raw materials are the most important asset to a company’s value and
prospects for growth. This applies to all industries including manufacturing, professional services,
and technology. Articulating this further is the following chart defining the shift in market assessment
for the world’s most valuable companies. As illustrated in Figure 2, 10 years ago the most valuable
companies consisted largely of natural resource extraction and now they are largely technology
companies with values based upon people generating innovative ideas and processes. This is not to
suggest that Bozeman
needs to focus their
industrial base entirely
on technology
companies, but to
understand that the
modern economy
thrives more on skilled
people than natural
resource extraction.
A significant cohort of
the talent in demand
consists of the
“Millennial” generation
(generally ages 19 to
35 in 2016) made up of
approximately 76 million people – the largest demographic group our country has seen. As this
generation grows and shapes our talent-based economy, it is important to understand what
motivates them and the communities they choose in such a highly mobile environment. Such an
environment includes the following elements:
Job Base. Talent moving to a new community wants to know that there are other
opportunities if the job that brought them there does not fulfill expectations.
Simple Commute. Many Millennials are not defined by the automobile, and do not want
to drive if they don’t have to. As reported in Urban Land Institute (ULI) Emerging Trends 2016,
miles traveled by car for those people 34 years old or younger are down 23 percent
nationally. Locally, the average miles travelled by any mode – walking, driving, biking, or
taking transit – is the lowest for Millennials.
Figure 2. The Age of Tech
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Urban Lifestyle. They tend to prefer density with alternative transportation modes and
retail nearby, which provides alternatives to owning a car. This urban lifestyle does not mean
that an entire community must conform to urban densities. What is important is that some
element of an urban lifestyle through either a healthy Main Street in a traditional downtown
or denser town centers in suburbs is provided.
Amenities. Millennials are looking for ample amenities, especially restaurants and access to
outdoor recreation.
Open Culture. They embrace social or ethical causes1 and communities that are more
diverse, accepting, and open to change.
Skilled Workforce
When planning for a future economy it is important to understand that all industries are dependent
on a talented workforce that has technical skills and/or higher education attainment. Bozeman’s
future economy requires a skilled workforce with training in career technical education (CTE) and
access to higher education science, technology, engineering, and mathematics (STEM) degrees.
Career Technical Education (CTE) Training
CTE training is targeted toward middle-skill jobs, which require education and training beyond high
school but less than a bachelor's degree, and are a significant part of the economy. Of the 55 million
job openings created by 2020, 30 percent will require some college or a two-year associate degree.
It is important to foster partnerships with Gallatin College and local primary and secondary schools
to encourage youth to consider this career path. By engaging youth early, they may be more likely
to attend Gallatin College or obtain other skills training and either start their own enterprise or apply
their critical skills with local companies in Bozeman. An example of CTE training includes culinary
programs that support the hospitality and tourism industry, and photonics technician training with
Computer Numeric Control (CNC) machining skills development that supports high-tech
manufacturing.
Higher Education
Globally, positions requiring substantial independent judgment and decision making are now in high
demand. Increasingly employers are demanding a workforce that has technical skills, including
manufacturing jobs that involve the operation of sophisticated machinery requiring some advanced
training beyond high school. Science, technology, engineering, and mathematics (STEM) workers are
increasingly in demand and in short supply, especially in the private sector which needs software
developers, data scientists, and those in skilled trades. Bozeman is fortunate in that it is home to
1 Brookings Institute, 11 Facts about the Millennial Generation, June, 2014.
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Montana State University (MSU), which provides several degrees and research facilities to equip
students with these technical, interpersonal, and entrepreneurial skills that are in high demand.
What is the Benefit of an Economic
Development Vision and Strategy?
In order to prepare a community to proactively respond to rapidly changing trends, it must have a
strategy in place. Without a strategy, efforts are often reactive, non-collaborative, and not connected
for meaningful impact. An economic development strategy will:
#1: Document a Playbook
For economic development to succeed, numerous partners and organizations must be engaged and
collaborate toward common goals. At the same time, it is essential for public and private entities to
recognize that they are partners in economic development efforts, as one cannot be sustained
without the other. To efficiently and effectively align goals, a community must understand,
document, and achieve consensus on its vision, values, opportunities, and objectives. Bozeman has
established a solid foundation with the three economic development pillar strategies defined below:
1.Support retention and growth of existing businesses, while welcoming and
encouraging new businesses;
2.Invest in infrastructure as a mechanism to drive economic development; and
3.Support education and workforce development initiatives to provide businesses with
qualified workers.
The world’s economy is changing rapidly. An established “playbook” provides enough broad goals
to recognize opportunities when they arise, and also clear direction regarding the City’s roles to help
determine projects that should be pursued and those that are better implemented by other
stakeholders. To effectively implement a strategy, it is as important to say “no” to certain
opportunities as it is to say “yes” to others.
#2: Identify Specific Actions and Metrics
Once goals and objectives are defined, action must be taken. Often these actions will appear minor
without the overall context of the plan. Furthermore, some actions will build momentum and have a
meaningful impact, others will fail, and some may not occur due to limited stakeholder interest or
resources. The intent of the strategy is to provide several action items by several partners, all
working toward the same overall goal. This is a flexible document that will be shaped as
opportunities arise. Finally, it is important to revisit the document annually and determine where
progress is being made, where other areas are deficient, and acknowledge that progress is being
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made. It will be necessary to update the document every three to five years in keeping with the
rapid pace of change in the economy.
Background
In developing the economic development strategy, it is important to obtain information from local
businesses and employees. We have achieved this through personal interviews and survey responses
from the business community. Consistent themes from the interviews and surveys are summarized
below and are reflected in the strategy.
Stakeholder Interview Themes
In August, 2016 Leland Consulting Group and Bozeman Economic Development staff held several
meetings with industry representatives, small business organizations, the Economic Development
Committee, and City staff to determine opportunities and challenges to fostering economic
development in the Bozeman region. Consistent themes and comments are noted below.
Hard to attract and hire senior level talent. Often want to also bring professional spouse but
may not have a position for that person. This is referred to as a “trailing spouse issue”.
Need to tell Bozeman business story (outdoor recreation story is done well already).
If more companies are here, it is more attractive to employees because they have options for
career growth and competition which ultimately increases wages.
Need to make sure existing companies have place to grow. They want to stay within the
Bozeman city limits but that opportunity is becoming constrained by costs and lack of
building sites.
Protect access to and quality of outdoor life and ecosystem (aquifers, trails, streams, views).
This is vital to Bozeman.
Emerging growth and economic development issues must be addressed on a regional level.
Need to start thinking regionally.
Financial resources are constrained. Need to work together (private/public) for proactive
solutions.
Accommodate and welcome new businesses interested in Bozeman, and balance other
economic development priorities with recruitment of companies.
Work with industry clusters to determine gaps in supply-chain and target companies needed
to fill the gaps.
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Citywide Survey Themes
The City of Bozeman is undergoing a Strategic Planning Process, which included outreach to the
local citizens via survey. They received over 530 responses, including the following, which represent
consistent themes in answering “What is your vision for an innovative economy?”
Higher wages, more appreciation of workforce, less concentration of wealth in the hands of a
few privileged folks
Promote growth on the micro level by opening doors and lightening unnecessary restrictions
that were written with larger businesses in mind. We need more people manufacturing or
running businesses out of their homes and vehicles as the cost of brick and mortar
businesses has become prohibitive to smaller startups.
Small, entrepreneurial businesses are the key. They are flexible, hire the most individuals and
adapt better than large businesses to a constantly changing economy!
Thriving business community, lots of growing startups, full employment, opportunities to get
training to improve your position.
Easy to start a business, easy to get funding.
A varied economy that continues to make quality of life a priority.
Economy based on multiple legs – technology, recreation, other skilled employment
Utilizing local talent and businesses.
Develop a plan to improve jobs and employment opportunities for residents wanting to stay
in the area equally matched with recruiting out of state residents for current and future
openings for employment. Develop training programs for workforces underrepresented, like
skilled trades, high-tech, and service work such as hospitality, landscaping, or unskilled labor.
Jobs that pay enough to let you live here.
Global, technology based businesses and other clean industries.
I would hope that Bozeman is an outdoor industry hub, has more than high-tech as options
for well-paying jobs, and has direct educational opportunities for residents who want to
pursue jobs in Bozeman.
Bozeman has a healthy mix of industries, including thriving high-tech companies who are
based in Bozeman.
That Bozeman would not become a mini Silicon Valley, even though high-tech businesses
are here. We need to make sure Bozeman remains diversified enough that we have a variety
of business that offer a variety of positions from skilled labor to Ph.D....not just all jobs
requiring a high amount of education.
A diversified economy that provides high paying jobs but doesn't detract from our natural
environment.
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Business Owner Survey Themes
City of Bozeman staff in partnership with Prospera, Bozeman Chamber of Commerce, and
Downtown Partnership distributed a survey to over 2,000 businesses. A total of 107 responses were
submitted. The company make-up is shown in the following chart and predominant themes are
summarized below.
Figure 3. Types of Businesses Responding to Survey
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Figure 4. Where Bozeman Companies Find Talent
Figure 5. Ideal Location for Bozeman Companies
0
5
10
15
20
25
30
35
Manufacturing Retail/Restaurant Professional services Tourism
Outdoor Photonics Bioscience Software/IT
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Business Owner Survey Comments
I work with businesses who are hiring. Barriers include: No local job posting site, costly nature
of newspaper advertisements, many businesses don't offer any type of health insurance (too
expensive), inability to be competitive with wages.
Available pool of experienced applicants, timing of students coming and going seasonally.
Hiring is done through word of mouth, online notices, in-store notices; university job board
and local Job Center.
If you could locate anywhere, where would it be:
o Downtown
o Northeast Bozeman
o Four Corners
o West end of Huffine
o MSU Innovation Campus
What do you like about your current location:
o Easy access to I-90 for shipping. Central.
o Downtown – close to services, culture, active main street.
o Easy to get to, easy parking, close to MSU campus.
o In the heart of the western expansion of Bozeman.
o Don't like current location with too much traffic and no place to walk. Suburban.
I'm not a "Bozeman native," I moved here in 2003. So I realize I'm part of the "growth
challenge." I believe there are ways we can grow responsibly, put infrastructure first (so we're
not handling those issues in "reactive mode" five years from now), and foster a sense of
community downtown and beyond, so we don't lose the fine qualities that drew us to
Bozeman in the first place. We do need to look at establishing more live/work/eat/play hubs
outside the Bozeman Main Street. That will be the toughest shift I imagine. Our single-street
downtown is so beloved by so many, but as the valley continues to grow, that Main-centric
mentality will get even harder to sustain. Thriving cities find a way to establish micro-hubs
and self-sufficient mini communities in rays branching out from the main downtown. We
don't have that yet, but it's where we need to go.
The City needs help implementing a system that would work more efficiently for small
business owners. It shouldn't take as long as it does to get permits approved.
Thank you for this opportunity to give input.
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Montana Photonics Industry Alliance Member Survey (2014)
The Photonics Alliance issues an annual survey to its membership. One specific question is “What are
the three most important things that the city/county government could do to promote the success
your organization?” This question helps guide specific actions the city should take to foster
economic development. The three most common answers were:
Support the Montana Photonics Industry Alliance (20 percent).
Support a campaign to increase awareness of the growing Montana photonics industry and
the attractiveness of this area for photonics companies and employees (20 percent).
Support infrastructure projects such as increased internet bandwidth and better business
travel connections (20 percent).
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Strengths, Weaknesses, Opportunities, and Challenges (SWOT)
The following strengths, weaknesses, opportunities, and threats (SWOT) are derived from
stakeholder input, survey responses, and general research.
Strength (internal) Weakness (internal)
High-wage and knowledge-based
industry clusters
MSU and Gallatin College programs and
increasing enrollment in both
Bozeman Yellowstone International
Airport
Outdoor recreation opportunities
Vibrant downtown
High net-worth population
Small-town feel
Strong K-12 system
Sustainable culture
Regional retail hub (important for talent
attraction)
I-90 access
City has great GIS data sharing capability
and culture
Limited affordable housing
Low salaries (also a strength for business)
Limited rail freight loading
Isolated location
Lack of cultural diversity
Limited access to venture capital and
startup ecosystem
Hard to attract senior level talent
City permitting process perceived as
difficult
Broadband infrastructure
Limited site availability for business
expansion
Lack of activities to support youth
programs, especially teenagers
Lack of larger conference/convention
facility
Opportunity (external) Threat (external)
Yellowstone National Park tourist
attraction
Big Sky Resort business leader attraction
Millennial talent pool is mobile and seeks
quality location
Population growth in mountain states
MT #6 best state for business tax climate
Limited STEM education workforce
State dependence on energy economic
base
Increase in fuel prices
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Economic Profile
The following information provides a current snapshot of economic conditions in the city of
Bozeman that provide direction regarding strategy actions. These data points can be used over
longer periods of time as a point of reference in gauging if the City is achieving overall goals.
Population Growth
The city of Bozeman’s population increased from 27,509 in 2009 to 39,123 in 2014 for a 42.2 percent
change in population. Population is projected to continue to grow at an annual rate of 4.2 percent.
This trend will continue to compel the City to consider strategic infrastructure investments that can
foster efficient development patterns that will support this growth.
Figure 6. Percent Change in Population (2000 to 2014)
Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington,
D.C.; U.S. Department of Commerce. 2000. Census Bureau, Systems Support Division, Washington, D.C.
Produced by Economic Profile System (EPS) September, 2016.
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Employment Growth
In line with population growth, employment grew at an average of 3.2 percent annually in Gallatin
County from 2004 to 2014.
Table 3. Gallatin County Annual Total Employment
2008 2009 2010 2011 2012 2013 2014 2008
to
2014
2010
to
2014
Gallatin County 49,081 45,324 45,043 46,419 47,718 50,315 55,533 6,452 10,490
Annualized Employment Growth -7.7% -0.6% 3.1% 2.8% 5.4% 10.4% 2.2% 5.4%
Source: U.S. Census LEHD Leland Consulting Group.
Commute Patterns
Commute patterns reflect how much of the workforce lives and works within the city of Bozeman.
Ideally, the workforce lives and works within the city to reduce congestion and retain spending
dollars within the community. Table 4 shows there is an increase of employment and residents within
the city between years 2010 and 2014. What is remarkable is the minimal increase in people
commuting into Bozeman for a job and living outside the city. Instead there is an increase in people
living and working in Bozeman, as well as the number of people living in Bozeman but working
outside the city. What this suggests is that the workforce prefers to live in Bozeman. Therefore, if an
employer locates a business within Bozeman they have a competitive advantage in providing a
desired location that reduces commute times and congestion and more access to local sector
businesses.
Table 4. City of Bozeman Commute Patterns
2010 2014
Employment in City 24,384 27,317
Employed Individuals Living in City 13,737 18,266
Commute into City for Employment and Live Outside 16,370 16,637
Live and Work in City 8,014 10,680
Live in City but Leave for Employment 5,723 7,585
Source: U.S. Census LEHD Leland Consulting Group.
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Median Age
The median age in Bozeman is 27.5 years versus
the U.S. average of 37.4 years. The distribution of
ages within Bozeman is shown in Figure 7. As
evidenced, the Millennial cohort dominates the
Bozeman population. This average age is largely
influenced by Montana State University, but still has
a significant influence on the culture and design of
the community quality of life elements.
Distribution of Employment
Table 5 reflects the distribution of employment
within Bozeman in comparison with U.S. averages.
Of note is a smaller percentage of manufacturing
employment at seven percent compared with a
national average of 10.4 percent. This likely reflects
the nature of small manufacturing facilities within
the city. There is a higher percentage of arts and
entertainment at 14.8 percent compared to the
national average of 9.5 percent which reflects the
unique tourism industry within Bozeman.
According to projections by the U.S. Department of
Labor, service-providing sectors are projected to
capture 94.6 percent of all the jobs added between
2014 and 2024. This trend toward the service-
producing sectors emphasizes the importance of
focusing on talent based industries that require
skills and some additional education.
Figure 7. City of Bozeman Average Age
(2014)
Source: U.S. Department of Commerce. 2015.
Census Bureau, American Community Survey
Office, Washington, D.C.; U.S. Department of
Commerce. 2000. Census Bureau, Systems
Support Division, Washington, D.C. Produced by
Economic Profile System (EPS) September, 2016.
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Table 5. Distribution of Employment by Industry (2014)
Bozeman, MT U.S.
Goods-Producing/Non-Service
Ag, Forestry, Fishing & Hunting, Mining 2.2% 2.0%
Construction 6.4% 6.2%
Manufacturing 7.0% 10.4%
Wholesale Trade 1.8% 2.7%
Service Related
Retail Trade 12.9% 11.6%
Transportation, Warehousing, and Utilities 2.2% 4.9%
Information 1.5% 2.1%
Finance and Insurance, and Real Estate 4.6% 6.6%
Professional, Scientific, Management, Admin, & Waste Management 11.4% 10.9%
Education, Health Care, & Social Assistance 27.6% 23.2%
Arts, Entertainment, Recreation, Accommodation, & Food 14.8% 9.5%
Other Services, except Public Administration 3.8% 5.0%
Public Administration 3.7% 4.9%
Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington,
D.C. Produced by Economic Profile System (EPS) September, 2016.
Income Distribution
In the 2009 to 2014 period, the income category in the city of Bozeman with the most households
was $50,000 to $74,999 (19.3 percent of households). The income category with the fewest
households was $150,000 to $199,999 (2.5 percent of households). In the 2009 to 2014 period, the
bottom 40 percent of
households in the city
of Bozeman
accumulated
approximately 10.7
percent of total
income, and the top
20 percent of
households
accumulated
approximately 52.6
percent of total
income.
Figure 8. City of Bozeman Household Income Distribution (2014)
Source: U.S. Department of Commerce. 2015. Census Bureau, American
Community Survey Office, Washington, D.C. Produced by Economic Profile System
(EPS) September, 2016.
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This income
distribution is
summarized by a Gini
coefficient, which is a
commonly used
measure of inequality.
In the 2009 to 2014
period, the city of
Bozeman had an
average income
distribution between
high and low-income
households (Gini coefficient of 0.47) similar to the U.S. average income distribution (Gini coefficient
of 0.48).
Education Attainment
As discussed, the modern global economy thrives on a skilled workforce. As indicated in the
following table, Bozeman is fortunate to have a highly-skilled workforce based on education
attainment. This is especially important for the types of industry clusters driving the Bozeman
economy that require a highly skilled workforce.
Table 6. Educational Attainment (2014)
Bozeman
% of Total
U.S. %
of Total
No High School Degree 2.5% 13.7%
High School Graduate 97.5% 86.3%
Associates Degree 6.6% 7.9%
Bachelor's Degree or Higher 54.4% 29.3%
Bachelor's Degree 35.6% 18.3%
Graduate or Professional 18.8% 11.0%
Source: U.S. Department of Commerce. 2015. Census Bureau, American Community Survey Office, Washington,
D.C. Produced by Economic Profile System (EPS) September, 2016.
Figure 9. Gini Coefficient (where 1 represents inequality)
Source: U.S. Department of Commerce. 2015. Census Bureau, American
Community Survey Office, Washington, D.C. Produced by Economic Profile System
(EPS) September, 2016.
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Industry Clusters
Industry clusters are groups of similar and related traded sector businesses in a defined geographic
area that share common markets, technologies, worker skill needs, and which are often linked by
buyer-seller relationships. Industry clusters represent distinct qualities of a community and help
define what makes one community different from another. As they convey distinct qualities, it is
important to be specific in the definition of a cluster. For example, rather than promoting “high-
tech,” a community should focus on “software or photonics” to convey the type of product being
manufactured and its unique workforce and supply chain needs. Promotion of clusters helps
reinforce to existing businesses and interested outside talent the unique community assets and why
it is good place to stay and grow. When interviewed, business leaders agreed with this approach in
that it helps convey an understanding of the distinct industry assets in the region. The City has
identified the following key industry clusters it can support and grow:
Photonics
Software/IT
Outdoor
Tourism/Recreation
Biotechnology
Each cluster benefits from partnership with the significant higher education assets of Montana
universities and colleges. Furthermore, the city’s infrastructure, unique assets, and existing company
base serves to support these industries. In defining specific clusters and fostering collaboration, new
business opportunities arise, workforce training needs can be met, and physical site expansion needs
can be addressed.
The following summaries by cluster will vary in the amount of detailed information depending on the
level of business alliance organization behind each cluster and the research invested to date. Those
with more information provide a good benchmark for the level of information desired from business
retention efforts and fostering formal business alliances for each group.
Photonics
Overview
Optics and photonics are a significant component of the southwestern Montana economy. On a per
capita basis, Bozeman has one of the highest densities of optics companies found anywhere in the
United States. Many of these companies were founded by Montana State University graduates, often
through MSU technology transfer.
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Companies
There are at least 30 photonics companies within the Bozeman region
(http://www.montanaphotonics.org/members/). Anchor companies that founded the cluster and are
larger employers include Quantel, ILX Lightwave, Lattice Materials Corporation, and FLIR. Sixty-three
percent of the companies reported fewer than 20 employees, while 18 percent had 21 to 50
employees, and another 18 percent had 50 to 100 employees.2 A sizeable majority of the firms in the
cluster were formed since 2000, and they tend to be young, small, and innovation intensive.
Industry Growth Projections
According to the following excerpt from Multiannual Strategic Roadmap 2014 – 2020 by the
European Technology Platform Photonics21, the opportunities for the photonics is significant:
“Photonics is everywhere around us: from communications and health, to
materials processing in production, to lighting and photovoltaics and to everyday
products like DVD players and mobile phones. Yet the full disruptive potential of
photonics is only now becoming clear. New advances in photonics will
revolutionize healthcare and provide new ways of detecting, treating and even
preventing illness. In manufacturing, laser processing will be a basic prerequisite
for high-volume, low-cost manufacturing.”3
The report continues to identify significant opportunities clearly conveying how photonics is
becoming one of the most important industries for the future.
According to a Montana Photonics Industry Alliance 2015 Member Survey, total industry
employment is 517 and they forecast headcount growth rate of nine percent for the year.
Distinct Resources
Many of the companies have a strong connection to MSU’s Optical Technology Center (OpTec) and
its associated nonprofit Spectrum Lab. OpTec plays a prominent role within the optics cluster as a
networking center for research and talent development. Spectrum Lab was “spun out” of OpTec in
1999 to further development technologies from MSU’s research facilities. Spectrum Lab serves as a
kind of optics “application incubator” for faculty and industry and as a bridge between MSU labs and
the private sector.4
2 Imagining a Future for the Big Sky Optics Cluster, RTS Inc., October 2012.
3 Multiannual Strategic Roadmap 2014 – 2020 by the European Technology Platform Photonics21, April 2013.
4 Imagining a Future for the Big Sky Optics Cluster, Regional Technology Strategies, October 2012.
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Montana Manufacturing Extension Center (MMEC) is an important organization fostering growth of
the cluster as well. The MMEC at Montana State University’s College of Engineering in Bozeman is a
statewide manufacturing assistance center that provides technical support and training to Montana
businesses. MMEC is also a part of the National Institute of Standards and Technology (NIST)
nationwide network of centers created to assist small and mid-size manufacturers, the
Manufacturing Extension Partnership (MEP). MMEC offers a wide array of services to Montana
manufacturers including business management, design and product development, lean enterprise,
process improvement, and quality systems services as well as a variety of training courses.
Workforce
The photonics industry is able to access a skilled workforce from both MSU and Gallatin College
through the following programs.
Montana State University:
Bachelor of Science (BS) Degree in:
o Chemical Engineering
o Computer Engineering
o Industrial Engineering
Masters of Science (MS) Degree in Optics and Photonics
BS, MS, PhD in Physics
Gallatin College:
Associate of Applied Science (AAS) Degree
o Photonics, Laser, Optics Technology.
o Design Drafting
o Production Management Course for Manufacturing (proposed)
Certificate of Applied Science (CAS) Degree
o Welding
o Machining
Industry Alliances
The Montana Photonics Industry Alliance is a strong organization serving the Bozeman area. They
perform annual surveys of members and have identified that they most need support from the City
regarding organizational support and employee attraction. Through their industry collaboration they
worked with Gallatin College to create the Photonics AAS degree that started Fall, 2016.
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Software/IT
Overview
The majority of software/IT companies within the Bozeman region provide Enterprise Software
(SaaS) services. These are companies with a software distribution model in which a third-party
provider hosts applications and makes them available to customers over the Internet. This
distinguishes Bozeman’s clusters from other regions that may specialize in consumer-facing or
gaming products.
Companies
Bozeman is fortunate to be home to a major facility of a globally recognized company, Oracle,
which serves as a significant anchor company for the region. Other growing companies include
Workiva, Zoot Enterprises, and Wisetail.
Industry Growth Projections
In 2016, spending on public cloud infrastructure as a service hardware and software is forecast to
reach $38 billion, growing to $173 billion in 2026. SaaS and Platform as a Service (PaaS) portion of
cloud hardware and infrastructure software spending are projected to reach $12 billion in 2016,
growing to $55 billion in 2026.5 Trends driving the market growth include geographic expansion,
industry customization, developer focus, expanding professional and managed services, and
enhanced security, governance, and compliance.
The Montana High-Tech Business Alliance (HTBA) includes software companies as well as high-tech
manufacturers. The HTBA 2016 Member Survey indicates that Montana’s high-tech companies
anticipate growing almost seven times faster than the Montana economy as a whole. HTBA
members (23 percent of all responses) most often reported that attracting talent and hiring skilled
technology workers was their firm’s largest impediment to growth.
Distinct Resources
A robust broadband network is critical for the growth of this industry. The City’s leadership role in
planning this infrastructure is a significant action toward fostering the growth of this industry.
Continuing to ensure access to convenient business flights to major software/IT regions is important
for talent attraction and access to capital will be important as well.
5 Statistica: Public cloud Infrastructure as a Service (IaaS) hardware and software spending from 2015 to 2026, by
segment (in billion U.S. dollars).
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Workforce
The software industry differs slightly from the business survey results regarding source of hiring. As
this industry has strong demand for talent that is highly mobile companies often extend beyond
Bozeman and Montana to hire employees. However, they can access a skilled workforce from both
MSU and Gallatin College through the following programs:
Montana State University:
BS, MS, and PhD in Computer Science
Bachelor of Science Degree Computer Engineering
Gallatin College:
Certificate of Applied Science (CAS) Degree
o Network Administration Technology (Fall 2017)
Industry Alliances
The Montana High-Tech Business Alliance (HTBA) is made up of more than 300 high tech and
manufacturing firms and affiliates in Montana. It consists is a broad range of companies including
pharmaceutical, semiconductor, software, and manufacturing using high-tech methods. If Bozeman
wants to foster a distinct software cluster, it can benefit from a distinct industry alliance that is
focused on their unique culture of collaboration, fostering startups, and addressing their need for
talent.
Outdoor
Overview
Building off unparalleled access to outdoor recreation, Bozeman has a growing industry tied to this
asset. The outdoor cluster consists of firms that design, develop, manufacture, market, distribute and
sell apparel, footwear, and gear for active outdoor recreation. While manufacturing is a key
component to the industry, it also hosts highly skilled knowledge-based workers in design,
marketing, and managing product development.
Companies
A key Bozeman regional anchor company is Simms Fishing Products, with its significant brand
awareness and large workforce. Other Bozeman companies include Mystery Ranch, Sklar Bikes, Buck
Products, and Sitka.
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Industry Growth Projections
Outdoor recreation is an economic powerhouse in the United States, each year generating $646
billion in consumer spending.6 Outdoor recreation in Montana generates $5.8 billion in consumer
spending on gear, vehicles, trips, travel-related expenses, and more. Over the next five years, as total
recreation expenditure expands, demand for hiking and outdoor equipment is anticipated to grow.
Industry revenue is $4 billion within Montana, with an annual growth of 1.8 percent.7
Distinct Resources
Outdoor manufacturers such as Simms place a high value on the Montana Manufacturing Extension
Center (MMEC) due to its practical and meaningful consulting services that help a company improve
production efficiencies. Bozeman’s easy access to the outdoors helps attract workers in this industry
to the region.
Workforce
The outdoor industry is made of a variety of skills and degrees tied to design and manufacturing.
Local industries benefit from tailored training programs offered by Gallatin College:
Associate of Applied Science (AAS) Degree
o Design Drafting
o Production Management Course for Manufacturing (proposed)
Apprenticeship
o Sewing Apprenticeship - According to Gallatin College staff, they are currently working
with Extended University-MSU, and Career Transitions (non-profit) and some outdoor
industry manufacturers to put together an industrial sewing apprenticeship or short-term
training, likely through a non-credit course path.
Business Alliances
Several Bozeman companies are members of the Outdoor Industry Association, which is a national
organization focused on the broader advancement to encourage outdoor recreation. Local
Bozeman manufacturing companies could benefit from an organized effort to promote their
companies tied to the Bozeman tourism/recreation industry. There is a ready opportunity to build of
the messages and collaborations developed in the recent Bring it to Bozeman outdoor video.
Additionally, they can continue to partner with higher-education partners to grow the workforce
base.
6 Outdoor Recreation Economy, Outdoor Industry Association, 2016.
7 Climbing high: Revenue trends upward as recreational spending rises, IBIS World, September 2015.
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Tourism/Recreation
Overview
The tourism industry cluster consists of a very wide range of businesses that benefit from travelers.
Buses, automobiles, airlines, rail, and other transportation companies bring travelers into an
economic region. These consumers in turn purchase products and services offered by local lodging
establishments, restaurants, amusement, recreational and entertainment establishments, and general
retail outlets. This process creates many employment and business opportunities, all of which help
sustain and expand the local economy.8
Companies
This industry cluster is supported by numerous local sector businesses including hotels, restaurants,
tour guides, and retailers.
Industry Growth Projections
In 2015, Yellowstone National Park experienced record visitation. One reason is that this iconic
national park is a draw for many international visitors. Pair that with reduced visa requirements in
China, for example, and there is a sudden boom. Nationally, the number of visitors from China to
the U.S. currently ranks as the 7th highest visitor group. By 2020, Chinese visitors are expected to be
one of the largest groups of visitors to the U.S.9 This trend is reflected in the National Park Service
recent addition of Mandarin speaking translators at the Park. Projected growth in the industry is
highlighted in Figure 10.
8 The Economic Review of the Travel Industry in Montana, Institute for Tourism & Recreation Research, University of
Montana, December 2014.
9 Montana Economic Report, Bureau of Business and Economic Research, 2016.
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Figure 10. Total Travel Expenditures in the U.S.
Source: The U.S. Travel Association, June 2016.
Distinct Resources
The Bozeman Yellowstone International Airport, direct access to Interstate 90, and nearby access to
Interstate 15 in Butte are critical infrastructure assets for the tourism industry. The continual trend of
the Bozeman Yellowstone International Airport outpacing Billings in passenger volume remained in
2015. Bozeman, with its population growth and nearby attractions (Yellowstone and ski resorts),
should remain Montana's busiest airport for visitation in the state. Additionally, distinct assets such as
Yellowstone National Park, Big Sky Resort, and Bridger Bowl Ski Area are important to the vitality of
this industry.
Workforce
The tourism/recreation industry is made of a variety of skills and degrees. Local industries benefit
from tailored training programs offered by MSU and Gallatin College:
Montana State University:
BS, Hospitality Management
Gallatin College:
Associate of Applied Science (AAS)
o Culinary Arts AAS Fall 2017
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Business Alliances
The Bozeman Convention and Visitor Bureau and the Bozeman Area Chamber of Commerce
currently promote local businesses and attractions for visitors. There is an opportunity for these
organizations to align events, marketing, and promotions to highlight and promote local outdoor
companies. This alignment could also further the Bozeman outdoor brand as not only a place to
visit, but to have a company as well.
Biotechnology
Overview
Southwest Montana has developed its own distinctive biotech infrastructure that includes several
medical/bioscience research institutes, hospitals with research and clinical trials capacity, and a very
strong life sciences and related engineering presence within its two major universities.
Nearly 61 percent of all bioscience jobs in Montana are in the Research, Testing and Medical
Laboratories category, compared to 56.5 percent in the U.S. Bozeman has the largest concentration
of bioscience companies, with 33 percent of all Montana companies being located in Bozeman.10
Companies
The broader Southwest Montana bioscience cluster is anchored by the GlaxoSmithKline
manufacturing facility in Hamilton, Montana. Within Bozeman, companies include Takeda,
Microbion, ProPharma Group, and ADVR Inc.
Industry Growth Projections
Entering the second half of this decade, most life sciences organizations appear to be adopting an
attitude of cautious optimism. Significant opportunities exist in the global marketplace but challenges
exist as well. Spending growth in pharmaceuticals (pharma), biotechnology (biotech), and medical
technologies (medtech) is projected to follow an upward trend due to increasing demand, but
pricing challenges are still an issue. Industry margins are being eroded by high discounts, retail
sector price controls, public sector purchasing policies, and the move to value-based care. Biotech
drugs (vaccines, biologics) continue to gain traction in the life sciences sector. Of the top 10 pharma
products by sales in 2014, the majority of them were biotech drugs, including monoclonal antibodies
and recombinant products. Treatments for rheumatoid arthritis, Hepatitis C, and cancer figure most
prominently in the list of the most sales generating drugs.11
10 Montana Bioscience Cluster Revisited, RTS Inc., 2013.
11 Global life sciences outlook, Deloitte, 2016.
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GlaxoSmithKline shut down its vaccine R&D branch within its Hamilton facility and laid off all of the
unit’s 27 employees in 2015. (No layoffs have occurred for the manufacturing portion of the
Hamilton site, where the bulk of the company’s employees work.) In addition, Takeda
Pharmaceutical Company will close its vaccine facility in Bozeman by 2017 as part of a company-
wide consolidation. While these companies have announced their relocation, some staff have
indicated that they will not leave Bozeman and instead start new companies. This is a significant
testament to Bozeman’s ability as a community to retain talent and continue to grow industry
clusters from the ground up. Furthermore, according to interviews with local business bioscience
leaders, the industry holds promise with the recent addition of Dr. Renee Reijo Pera highlighted
below, which will only further support the talent base determined to stay in Bozeman.
Distinct Resources
Montana State University lab facilities and technology transfer services are critical to the growth of
this industry. Dr. Renee Reijo Pera, an internationally recognized stem cell scientist and former
director of Stanford University’s Center for Human Pluripotent Stem Cell Research and Education
and the Center for Reproductive and Stem Cell Biology, as well as the doctoral program in stem cell
biology and regenerative medicine, is the new Vice President for Research and Economic
Development at Montana State University.12
According to business leaders, there is approximately 40,000 square feet of private wet lab space
available for lease. This is a highly valuable asset that should be highlighted and promoted to retain
and grow local companies. Additionally, development of the Montana State University Innovation
Campus has gained momentum and is attracting interest in development.
Workforce
The biotech industry is able to access a skilled workforce from both MSU through the following
programs. As indicated by Gallatin College staff, there are no specific programs tied to this cluster
currently, but it is willing to work with the industry.
Montana State University:
Bachelor of Science Degree in Biotechnology
PhD in Bioengineering
Business Alliances
Montana Bioscience Alliance is an organization that serves as a hub for Montana’s biotechnology
companies, entrepreneurs, laboratories, hospitals, clinics, and universities to commercialize, grow,
and sustain globally competitive bioscience companies. Business leaders expressed in interviews that
12 Bioscience Under the Big Sky, Montana Bioscience Alliance, 2014.
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it would be beneficial to work with this organization with more concentrated focus on Bozeman
companies and MSU opportunities for commercialization.
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The Strategy
Strategies must continuously evolve as economic situations change, actions are accomplished, and
new opportunities arise.
Current Strategy
The City of Bozeman has established a solid approach to economic development with its current
strategy that is based on the three economic development pillar strategies below.
1.Business Growth: Support retention and growth of existing businesses, while welcoming and
encouraging new businesses.
2.Infrastructure: Invest in infrastructure as a mechanism to drive economic development.
3.Workforce: Support education and workforce development initiatives to provide businesses
with qualified workers.
Strategy Update
The strategy update builds on the current work to date with a consideration of broader economic
development trends. Specifically, within this recent economic growth cycle, the nation has seen
large regions boom with innovation and employment that largely benefits a workforce with
significant education and skills development. Many of these areas are now struggling with complex
issues tied to increased traffic and limited affordable housing for the middle and low-income
workforce. The city of Bozeman is at a critical point in growth and has an opportunity to learn from
these larger regions. Fortunately, civic leadership is looking ahead to retain the exceptional quality of
life in the city, while also growing the economic base that is so vital to the health of a community. A
critical question that was heard throughout the development of this strategy was “Can we maintain
the high quality of life Bozeman citizens expect while increasing wages to compete regionally and
nationally?” The answer is yes with a commitment to the following outcomes, which are the
foundation of this strategy update, and shape the three explicit goals outlined below.
Strong Economic Base
Increase middle and high wage traded sector employment and diversify the economic base
by supporting existing businesses and strategically growing the local supply chain.
Support local sector businesses with a seamless permitting process and awareness about
existing small business programs.
Invest in infrastructure projects identified on the capital improvement plan (CIP) that the
business community needs and wants by leveraging the City’s proactive culture to foster
collaboration across departments and commitments to identified projects.
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Strong Community
Protect the outdoor environment by guiding efficient industry site development within the
city limits.
Foster an environmentally and economically sustainable community with an active
transportation network (transit networks, bicycle routes, trails, and sidewalks) that employers
and employees desire.
Offset livability costs for citizens with conscious infrastructure and workforce investments that
improve access to job opportunities with the understanding that several other stakeholders
are focused specifically on affordable housing.
Goal 1: Expand the Existing Base
Why this Goal?
The Bozeman area is fortunate to already host a robust base of knowledge-based industries that are
poised for more growth. However, these existing industries are challenged with attracting a skilled
workforce. Due to Bozeman’s high quality of life, it can attract and retain this needed talent with a
concentrated message and outreach effort. When there is a larger employment base, it is more
attractive to employees because they have options for career growth. In turn, once the employment
base grows, competition will occur and ultimately increase wages.
Objective 1.1 Develop strategic approach to business retention visits
City staff must have a good understanding of the existing industry base to effectively support it.
Meeting with businesses and documenting opportunities and challenges is an important first step to
gain industry insights, resolve challenges, and foster collaboration. Furthermore, based on the
significant amount of appreciation for outreach identified in the survey, it is clear this effort is desired
and needed.
Actions
Prepare list of existing targeted traded-sector companies that are within industry clusters.
Become familiar with workforce services and grant programs that can help business. May
want to include workforce representative as appropriate on visits.
Identify companies that are facing retirement and need to transition ownership or need
assistance in scaling up facility.
Based on interviews with businesses, identify any barriers to growth. Compile responses from
business to find common themes of strengths and weaknesses of working in Bozeman.
Obtain quotes from CEOs to authentically promote Bozeman.
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Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business
expansion
It is important to understand where different industries can locate. For example, bioscience needs to
be near MSU research facilities and photonics is sensitive to vibration and can’t be near rail. With this
understanding of site needs, the appropriate infrastructure improvements can be made in the right
locations to foster growth.
City staff has the unique role in guiding infrastructure investments, land use policy, and the
permitting process. Removing barriers to site development and proactively fostering site readiness
tied to business needs is a critical role in economic development. Furthermore, development in the
desired downtown core is more complex than standard “greenfield” development and requires
hands-on engagement with staff.
Actions
Work with industry clusters to understand their unique siting needs and help them find
locations. Leverage planning and investment in broadband with site determination process.
Establish list of infrastructure needs tied to facilitation of site development.
Collaborate with Public Works, Finance, and Community Development Department to
determine if the needed infrastructure serves multiple properties and is on the Capital
Improvement Plan (CIP).
Ensure enough appropriately zoned land in desired employment areas.
Based on this understood need, apply for grants or apply Tax Increment Financing (TIF) funds
for projects in appropriate districts. Consider applying for a federal EDA Public Works grant
for infrastructure serving multiple employment sites.
Objective 1.3 Foster industry cluster collaboration
Industry clusters can thrive with a concentrated effort to bring research, workforce training, and
business together. In doing so, innovation is commercialized, business opportunities are fostered,
and training needs addressed. Cluster collaboration is realized through events, business assistance,
infrastructure investment, workforce training, mentorships, education, and marketing.
Actions
Continue to provide staff support for the photonics industry alliance.
Provide funding and staff support to implement a software industry alliance that includes
stakeholder representatives.
Provide funding and staff support to implement an outdoor industry alliance that includes
stakeholder representatives.
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Provide staff support to engage existing tourism organizations to align events, marketing and
promotions to highlight and promote local outdoor companies.
Provide staff support to engage Montana Bioscience Alliance locally to further a bioscience
industry alliance that includes stakeholder representatives.
Determine if there are gaps in the supply-chain requiring a specific company presence to
bolster industry cluster strength. Partner with industry leaders to fill supply-chain gaps with
known sites, market demand, and workforce opportunities.
Objective 1.4 Strategically market for talent attraction
The number one asset and need for any industry is talent. In expanding the existing base, it is
important for businesses to easily retain and attract talent. In preparing the strategy, almost all
industry sectors expressed the need to build one compelling website that aggregates the business
case for Bozeman and why talent will want to come here. Additionally, in the business survey
responses it was expressed that limited pools of applicants and no central site for postings is a
barrier to hiring. The website could serve as important tool as a portal for hiring.
Actions
Pending private industry match, hire consultant to build basic website for talent attraction
that supports all industries. Consider annual maintenance in budget and strategy to engage
industry for use and upkeep. Based on meetings with business groups and BRE visits,
determine key messages to attract talent.
Goal 2: Support Business
Why this Goal?
New businesses account for nearly all net new job creation and almost 20 percent of gross job
creation. Furthermore, companies less than one-year-old have created an average of 1.5 million jobs
per year over the past three decades.13 People generally start businesses in the places they are
already located, and many of the resources they access are at the local or regional level.
New local sector businesses are important as they make a community distinct, provide amenities to
attract young professionals and families that drive the new economy, and serve the tourist industry.
Many of these businesses need “brick-and-mortar” locations often requiring tenant improvements
and building permits, which can be a daunting process. These businesses often benefit greatly from
business planning and consulting as well. For these business owners, having one point of contact to
navigate the process of starting a new business is extremely valuable.
13 The Importance of Young Firms for Economic Growth, Kaufman Foundation, September 13, 2015
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New traded sector startups generally stem from university research or an existing industry cluster.
These new businesses have limited space needs and may just be starting out of the home or garage.
These businesses need access to capital and industry networks for collaboration and support.
Objective 2.1 Provide resources to local businesses to help them grow and expand
Often owners of new businesses have never experienced permitting and development of a business
place nor are they aware of the many programs offered to support their growth. City staff has a
unique role as an important point of contact for these new business owners and can make the
process more seamless and supportive.
Actions
Create a role for a specific person in economic development department to be first stop for
permitting and process concierge. Introduce businesses to existing small business programs.
Continue to proactively share GIS data and information to help business determine locations
for new business to help determine where infrastructure investments should be made.
Objective 2.2 Support existing startup infrastructure
It is important to support an ecosystem where startups are supported and celebrated to create new
jobs. An entrepreneurial culture not only serves to create new jobs, but it provides an environment
that supports “trailing spouses:” a person who follows his or her life partner to another city because
of a work assignment. In a tough hiring climate, promoting this asset is important.
Actions
Collaborate with the startup organization to define roles and objectives. The City’s role is to
help promote awareness of programs. Promote existing programs through business license
renewal or City mailings.
Promote the MSU Blackstone Launchpad, which is an entrepreneur resource for students,
alumni, and faculty offering coaching, ideation, and venture creation support.
Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster partnerships
with industry clusters.
Promote the Blue Ocean Innovation Center, which is an existing private co-working space, as
resource for startups.
Promote Startup Bozeman as networking resource for startups.
Goal 3: Regional Connections
Why this Goal?
Complex issues driving income stratification and workforce skills gaps are making it more difficult for
all citizens to realize positive personal economic growth in keeping with business growth. In order to
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plan for this modern economy, communities must consciously foster a diverse economic base and
skilled workforce to weather inevitable negative portions of the economic cycles.
Objective 3.1 Regional focus
The economic development issues facing Bozeman do not adhere to geopolitical boundaries. In
order for the City to effectively achieve goals of efficient, sustained and diverse economic growth, it
must collaboratively work with County staff. Furthermore, if new financing tools are to be secured, it
will take a unified regional voice.
Actions
Establish economic development implementation group with County economic development,
planning and public works staff.
Consider how tourism funds can be incorporated into economic development efforts.
Align economic development legislative agendas on a regional level for stronger voice and
actions to preserve existing economic development tools and diversified funding stream for
new opportunities.
Support Gallatin College in finding a location for a 100,000 square foot facility and aligning
regional funding.
Objective 3.2 Workforce training partnerships
To succeed in the modern global economy people must develop skills. In order to ensure economic
opportunities for Bozeman citizens, it is important to foster interest in job opportunities at a young
age and make training programs readily available.
Actions
Build project-based learning partnerships between industry and K-12 programs. Have
students visit manufacturing facilities to make education relevant.
Continue to support Gallatin College and training programs by commuting needs of
businesses.
Explore opportunity for a coding school. These are fully-immersive coding boot-camp
programs and a part-time course designed to produce or enhance highly employable
software developers ready to work in Montana’s thriving community of startups and tech
businesses.
Objective 3.3 Strategically invest Urban Renewal
With a conscious investment in active transportation, the City provides the crucial infrastructure to
foster affordable lifestyle (not just affordable housing). With a focused effort to promote infill and
building housing and employment along corridors, individuals are less compelled to own an
automobile, which translates into $9,000 in personal annual savings.
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Actions
Understand where different types of workforce lives and their employment locations.
Determine if there are commute barriers/opportunities.
Collaborate with transit authority to determine if routes and service are matching with
employer and employee locations.
Support efforts to build higher-density housing near transit and active transportation routes.
Enhance bike and pedestrian connections throughout the city to offer low cost active
transportation options.
End of document.
145
Business
Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019
Years
4 and 5
Staff and
Resource Partner Metric Outcome
Expand the Existing Base
√
Prepare list of existing targeted traded-sector companies that are within
industry clusters. Become familiar with workforce services and grant
programs that can help business. May want to include workforce
representative as appropriate on visits.
X X X X
New staff Prospera, Chamber,
Gallatin College, MSU,
and other similar partners
Identify how many business visits made in what
sector. How many training programs utilized by
business and what skills traiing is provided.
Identify companies that are facing retirement and need to transition
ownership or need assistance in scaling up facility. X X X X New staff Manufacturing
Partnership
List how many companies are facing this situation
and resolution by what organization.
Based on interviews with businesses, identify any barriers to growth. Compile
responses from business to find common themes of strengths and
weaknesses of working in Bozeman.
X X X X
New staff Brokers, developers,
engineers
Identify the barriers to growth and how are they
resolved by staff.
Obtain quotes from CEOs to authentically promote Bozeman.X X X X New staff NA Document quotes and utilize on website.
√√
Work with industry clusters to understand their unique siting needs and help
them find locations. Leverage planning and investment in broadband with
site determination process.
X X X X
Project
Manager
Brokers, developers,
engineers, MSUIC
Identify how many infill projects were developed.
Establish list of infrastructure needs tied to facilitation of site development.X X X X Project
Manager
Brokers, developers,
engineers
Document needed infrastructure projects.
Collaborate with Public Works, Finance and Community Development
departments to determine if the needed infrastructure serves multiple
properties and is on the captial improvement plan.
X X X X
Project
Manager
City staff Identify how many ED projects on CIP and where.
Ensure enough appropriately zoned land in desired employment areas.X X X Project
Manager
Community Development
Department
Identify how many sites available for expansion and
where.
Based on this understood need, apply for grants or apply Tax Increment
Financing (TIF) funds to projects in appropriate districts. Federal EDA Public
Works grant for infrastructure serving multiple employment sites.
X X X
Project
Manager
City staff Identify how many grants and dollars have and/or
can be obtained to fund infrastructure.
√√
Continue to provide staff support for the photonics industry alliance.
X X X X
Director /
Project
Manager
Photonics companies,
MSU, and Gallatin
College
Determine barriers to growth within industry and
how they align with regional legislative agendas.
Build industry support for determined infrastructure
needs.
Provide funding and staff support to implement a software industry alliance
that includes representatives.X X X New staff
and $10,000
Software companies,
MSU, and Gallatin
College
Organization Chair identified and first meeting
held.
Provide funding and staff support to implement an outdoor industry alliance
that includes MSU, MMEC, and Gallatin College representatives. X X X New staff
and $10,000
Outdoor companies,
MSU, and Gallatin
College
Organization Chair identified and first meeting
held.
Provide staff support to engage existing tourism organizations to align
events, marketing and promotions to highlight and promote local outdoor
companies.
X X
New staff Tourism organization and
chamber
Staff attending meetings to determine if there is an
opportunity to align with outdoor industry.
Provide staff support to engage Montana Bioscience Alliance locally to
further a bioscience industry alliance that includes MSU and Gallatin College
representatives.
X X
New staff Biotechnology
companies, MSU, and
Gallatin College
Organization Chair identified and first meeting
held.
Determine if there are gaps in the supply-chain requiring a specific company
presence to bolster industry cluster strength. Partner with industry leaders to
fill supply-chain gaps with known sites, market demand, and workforce
opportunities.
X X X
New staff Industry cluster
organizations
Identify company gaps internally and outreach
strategy to address.
√√
Pending private match, hire consultant to build basic website for talent
attraction that supports all industries. Consider annual maintenance in
budget and strategy to engage industry for use and upkeep. Based on
meetings with business groups and BRE visits, determine key messages to
attract talent.
X X
$15,000 +
maintenance
Industry cluster
organizations
Website created.
Business attracts
talent more easily.
Glossary Strategy Overall document that guides economic development department workplan for up to five years. Goal An overarching principle that guides decision making.Objective Specific area of focus to implement goal.Action Specific task undertaken by staff to meet objective.Outcome
BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022)
Objective 1.1 Develop strategic approach to business retention visits
Objective 1.2 Invest in infrastructure and employment areas desired by traded sector business
Business
opportunities are
fostered,
innovation
encouraged,
training needs
addressed, and
barriers removed,
all strengthening
and growing
industry base.
Local industries
grow with the
removal of barriers
to growth and
nuturing of assets.
Construction of
infrastructure to
employment areas
desired by
industry.
Result of actions.
Objective 1.3 Foster industry cluster collaboration
Objective 1.4 Strategically market for talent attraction
Three Pillar Strategies
146
Business
Growth Infrastructure Workforce Actions and Metrics 2017 2018 2019
Years
4 and 5
Staff and
Resource Partner Metric Outcome
BOZEMAN ECONOMIC DEVELOPMENT STRATEGY (2017 to 2022)Three Pillar Strategies
√
Create a role for a specific person in ED to be first stop for permitting and
process concierge. Introduce businesses to existing small business programs.X X X X
New staff DDA, SCORE, SBA,
County, Chamber, and
similar partners
Identify how many businesses supported and the
services provided.
Continue to proactively share GIS data and information to help business
determine locations for new business to help determine where
infrastrustructre investments should be made.
X X X X
Director /
new staff
City staff Identify how many business licenses issued annually
in what sector and where.
√
Collaborate with the start-up organizations to define roles and objectives.
City’s role is to help promote awareness of programs. Promote existing
programs through business license renewal or City mailings.
X X X X
Director /
new staff
Launchpad, Tech Link,
Blue Ocean, Startup
Bozeman, and other
Document number of promotions provided for
each start-up organization.
Promote the MSU Blackstone Launchpad, which is an entrepreneur resource
for students, alumni, and faculty offering coaching, ideation, and venture
creation support.
X X
Director /
new staff
Organization Highlight information in website.
Collaborate with MSU Tech Link (formerly Tech Transfer Office) staff to foster
partnerships with industry clusters. X X Director /
new staff
Organization Highlight information in website.
Promote the Blue Ocean Innovation Center, which is an existing private co-
working space, as resource for start-ups.X X Director /
new staff
Organization Highlight information in website.
Promote Startup Bozeman as networking resource for start-ups. X X Director /
new staff
Organization Highlight information in website.
√√√
Establish economic development implementation group with County
economic development, planning and public works staff.X X X X Director County Organize committee and hold at least two
meetings.
Consider how tourism funds can be incorporated into economic
development efforts.X X X X
Director Convention and Tourism
Bureau, Chamber, and
other similar partners
Meet with partners and identify potential projects
for funding that support both tourism and
economic development.
Align economic development legislative agendas on a regional level for
stronger voice and actions to preserve existing economic development tools
and diversitifed funding stream for new opportunities.
X X X
Director Chamber and other
similar partners
Prepare aligned legislative agenda items for focused
efforts. Identify how industry leaders can specific
support efforts.
Support Gallatin College in finding a location for a 100,000 square foot
facility and aligning regional funding.X X X
Director Gallatin College, County,
Chamber, Prospera, and
other similar partners
Work with partners to determine specific college
needs and fundraising strategy. Leverage
established partnerships.
√
Build project-based learning partnerships between industry and K-12
programs. Have students visit manufacturing facilities to make education
relevant.
X X X X
Director /
new staff
Gallatin College, MSU,
industry organizations
Align with ongoing efforts to define and promote
programs when visiting businesses.
Continue to support Gallatin College and training programs by commuting
needs of businesses. X X X X Director /
new staff
Gallatin College, industry
organizations
Document training needs identified in business visits
and document follow up as to how need is met.
Explore opportunity for a coding school. These are fully-immersive coding
boot-camp programs and a part-time course designed to produce or
enhance highly employable software developers ready to work in Montana’s
thriving community of startups and tech businesses.
X X
Director /
new staff
Sofware companies,
Gallatin College, MSU
Based on business visits determine industry support
and need. Document need and next steps with
partners.
√
Understand where different types of workforce lives and employment
locations. Determine if there are commute barriers/opportunities.X X X X Project
Manager
Brokers, developers,
engineers
Map desired areas and if there are infrastructure
gaps.
Collaborate with transit authority to determine if routes and service are
matching with employer and employee locations. X X X X
Project
Manager
HRC, businesses Map employment and employee areas and desired
transit routes. Determine opportunities for new
services lines and necessary revenues.
Support efforts to build higher-density housing near transit and active
transportation routes.X X X X Project
Manager
Planning department Document and map new housing projects.
Enhance bike and ped connections throughout city to offer low cost active
transportation options.X X X X Project
Manager
Public works Document and map new projects.
Local workforce is
strengthened with
enhanced skills
and training.
Community has
awareness of
existing start-up
community and
more start-ups
may emerge.
City builds the
type of place
employees and
employers want to
live and work in.
City and County
partners effectively
and proactively
address complex
issues facing the
region.
Objective 2.1 Provide resources to local businesses to help them grow and expand
Objective 2.2 Support existing start-up infrastructure
Objective 3.1 Regional focus
Objective 3.2 Workforce training partnerships
Objective 3.3 Strategically invest Urban Renewal
Business starts and
grows more easily.
Support Business
Regional Connections
147
ECONOMIC DEVELOPMENT VISION AND VALUES
Economic Vision
Our community strengthens and diversifies the local economy by supporting business sectors that create & sustain mid-
to high-paying jobs, enhancing the high quality of life in the greater Bozeman area.
Guiding ED Values/Principles
Values important to Bozeman’s economic future include:
• Strengthening and diversifying the local home-grown economy
• Increasing economic activity that improves our community’s prosperity
• Supporting innovation and encouraging growth in mid-to-high wage sectors
• Facilitating the creation of mid-to-high paying jobs/high quality employment to match the
high quality of life
• Environmental responsibility
• Intentional growth planning
ECONOMIC DEVELOPMENT STRATEGIC IMPERATIVES
The following is a list of our economic development strategic imperatives (anchor strategies). The
City of Bozeman will lead the implementation of some of these imperatives, and City will assume a
supporting role for others, while other entities lead the implementation. The Plan’s Implementation
Matrix also identifies strategic imperatives for the City of Bozeman to initiate and lead with a
corresponding timeline and is included in the next section (Section VIII). The strategic imperatives
are all important and there is no priority ranking attached to the order of presentation.
These strategic imperatives and the corresponding matrix provide a framework in which the City,
the business community, and key stakeholder groups can plan, prioritize, and implement economic
development activities for the benefit of all citizens of Bozeman. Not all of these proposed strategies
will have the same impact, but through a focused and collaborative effort, Bozeman will be better
positioned to be more competitive.
The specific recommendations and priorities of the City of Bozeman Economic Development Plan fall
under the following 3 economic development strategic imperatives:
1. Support retention and growth of existing businesses, while welcoming and encouraging new
businesses
2. Invest in infrastructure as a mechanism to drive economic development.
3. Support education and workforce development initiatives to provide businesses with
qualified workers.
148
1) Support retention and growth of existing businesses, while welcoming and encouraging
new businesses
a. Pursue, support, and provide assistance for business start-up, expansion, and business
recruitment efforts that strengthen economic clusters that increase prosperity in the
community.
b. Support and promote entrepreneurial efforts and business expansion and retention
through collaboration with area economic development agencies and organizations.
c. Leverage MSU-Bozeman research and technology transfer resources and assets.
2) Invest in infrastructure as a mechanism to drive economic development
a. Invest in infrastructure as a mechanism to drive economic development at safe and
efficient levels to satisfy the current and future needs for economic expansion. The
condition of streets and sidewalks, water and sewer, lighting, gas and electric distribution,
fiber optic communications, and solid waste disposal all affect how effectively and
efficiently businesses conduct their operations or whether a business decides to grow or
relocate to the area.
3) Support education and workforce development initiatives to provide businesses with
qualified workers.
a. Support Montana State University and Gallatin College programs encouraging alignment
with the workforce needs of supported sectors.
b. Support federal, state, county and local workforce development initiatives.
149
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VIII. IMPLEMENTATION MATRIX VIII-1
VIII. IMPLEMENTATION MATRIX - REVISED 12-29-15
These are the recommended priorities for the City of Bozeman to implement the City of Bozeman Economic Development Plan. They are based
upon potential impact, use of city resources, and time required to complete. The timeline is set from the date of final adoption of the Plan by the City Commission.
Vision
Our community strengthens and diversifies the
local economy by supporting business sectors
that create & sustain mid- to high-paying jobs,
enhancing the high quality of life in the greater
Bozeman area.
LEAD PARTNER SUGGESTED SUPPORTING PARTNERS
IMPLEMENTATION TIMELINE < 6 Mos. 6-12 Mos. 1-2 Yrs. Ongoing Complete Strategic Imperative (1, 2 or 3, see SI Matrix) 1. a
Pursue, support, and provide assistance for business start-up, expansion, and business recruitment efforts that strengthen Bozeman’s economic clusters.
Sector development initiatives in Outdoor, Photonics,
High Tech and social sector. Additional work to do in bioscience, manufacturing and health care.
City Manager
Office
Economic Development Council, TechRanch,
MSU
x
1
1. e
Encourage the participation of the business community in the development of city-wide programs related to transportation, growth management, development impact fees,
environmental protection, and other related issues.
UDO Update, Midtown visioning and zoning updates, REMU Zoning, Transportation Plan update, evolution of Streamline and other alt. modes of transportation,
Arterial and Collector program (PW), Stormwater, Affordable/Innovative Housing (CD)
City Manager Office &
Planning
Department
Bozeman Area Chamber of Commerce, GAR,
SWMBIA x
1
2. b
Support and encourage efforts to develop larger convention or conference center facilities to attract larger statewide or regional event, meeting, and convention business to Bozeman.
Partnership with Chamber of Commerce to thoughtfully consider all sides of this issue. ED may take more of a leadership role here.
City Manager Office Economic Development Council, Bozeman Area Chamber of Commerce
x
2
150
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VIII. IMPLEMENTATION MATRIX VIII-2
2. c
Support or lead efforts to develop an industrial park to meet the needs of existing and future light manufacturing or industrial businesses in Bozeman. North Park remains under contract for sale. The
property is zoned M-2.
City Manager
Office
Montana Manufacturing Center (MMEC),
Prospera Business Network x
2
3. c
Support the creation of market-rate and affordable rental and
owner-occupied housing that meets the needs of the local workforce. CD has crafted and the Commission approved an innovative housing ordinance.
City
Commission HRDC x
x N/A
4. a
Continue to utilize tax increment financing (TIF) programs as
a tool for urban renewal and economic redevelopment
opportunities where appropriate. ED has assumed responsibility for the management of 4 of the 5 TIF districts in Bozeman (Midtown, NEURD, SBTD and NPID).
City Commission Downtown Bozeman Partnership x
2
4. c
Utilize incentives, such as property tax abatement or
development fee abatement, to encourage business
investment and development in desired areas. The EDC brought the incentive discussion to the Commission in April 2013 and the subject was tabled indefinitely.
City Commission Economic Development Council x
?
4. h
Identify and support redevelopment opportunities and
adaptive reuse of large commercial centers.
Imperial Inn redeveloped (Lark), Kenyon Noble site redeveloped (Element), Safeway site redeveloped, Van’s site redeveloped (Midtown), K-Mart and Armory buildings remains vacant.
City
Commission & Planning Department
Gallatin Association of Realtors
x
1
5. a
Establish an advisory committee to review the City of
Bozeman’s development review and permitting process,
evaluate development issues and make recommendations for policy and procedure changes to the City Commission. CD successfully implemented improvements to the development process including Development review
manager and engineer, outside plan review, improved DRC process, improved fee schedule and UDO update.
City Commission & Planning
Department
City of Bozeman
x
X
N/A
5. b
Designate a qualified city employee with economic development responsibilities and a role as the community business advocate. This employee will also coordinate with
the Economic Development Council on the implementation
of this Plan.
City
Commission City of Bozeman x
X
N/A
151
CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VIII. IMPLEMENTATION MATRIX VIII-3
Economic Development Department established with director and specialist positions. A new FTE will be requested in FY 17 to work directly and more full time in the TIF Districts.
5. c
Establish an Economic Development Council, consisting of:
business leaders, city staff, economic development leaders,
and others; to advise the City Commission on economic development issues and to review the implementation of this City of Bozeman Economic Development Plan. EDC established in 2010 and is presently re-imagining
its role, contribution and engagement strategy.
City
Commission City of Bozeman x
X
N/A
5. d
Engage in an active program for the City Commission and
City staff to visit Bozeman businesses on a routine basis, with the intent of improving the relationship between the City and the business community, and to proactively identify issues and
work to resolve them collaboratively. Coordinate with the
Chamber of Commerce, Prospera Business Network, and others to facilitate this program. These activities are ongoing and are assimilated in the daily activities of the Department.
City Manager Office Bozeman Area Chamber of Commerce, Prospera Business Network
x
X
1
6. b
Support the continued economic vitality of the Downtown
Bozeman business district, which is broadly recognized as one
of Bozeman’s strongest assets. Continue to support and promote Downtown Bozeman as the economic and cultural center of the region, and encourage development and re-
development through the use of incentives for future
investment and development. Downtown TIF, parking garage as catalyst for downtown hotel development (Lark and Element), Bozeman Fiber Initiative (includes Downtown as part of
the fiber backbone), expansion of the Midtown to share a contiguous boundary with the Downtown TIF, residential and commercial infill (Block M and 5 West).
City Commission Downtown Bozeman Partnership, Prospera Business Network x
1 & 2
6. c
Support the economic vitality of Bozeman’s entryway corridors to reinforce Bozeman as a regional shopping
destination.
Hotel development in the N. 19th and Midtown Corridors, Midtown is a leg of the fiber network backbone. Midtown revitalization (Midtown Tavern,
formerly Ferraro’s), Recommendation of a new zoning
district in the Midtown encouraging investment,
City
Commission Planning & Department
Bozeman Area Chamber of Commerce, North 7th Avenue Business Owner Group x
1 & 2
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CITY OF BOZEMAN ECONOMIC DEVELOPMENT PLAN
VIII. IMPLEMENTATION MATRIX VIII-4
repurposed and expanded Midtown TIF district incentive programs, East Main Street development revitalizing the eastern most entryway into Bozeman.
6. d
Require Consider a cost benefit analysis or economic impact analysis for all projects receiving financial assistance from the
City (including incentives) to measure the return on
investment. Work on projects (North Park, Social Sector value analysis) and with local businesses and industry sectors
has produced numerous impact analyses, in partnership
with the NRMEDD, used in furtherance of project goals.
City Manager Office Prospera Business Network x X
1 & 3
Economic Development Budget Presentation Accomplishments and Highlights FY 13 – 16
FY 13
1. Continued implementation of the adopted ED plan
2. Conducted community outreach
3. Hosted an ED summit
4. Assisted with implementation of “business friendly” process
5. Completed the North Park Land use Plan
6. Supported sector development (photonics, manufacturing, bioscience, outdoor and high tech)
7. Created the SBTD (technology TIF district)
8. Facilitated the downtown hotel development discussions
9. Assisted with the restructuring of the CD dept.
10. Raised the issue of impact fees and economic development (incentives)
11. Explored an impact fee mitigation program
12. Created and led the internal economic development team
13. EDC liaison
FY 14
1. Establish a technology TIF district
a. Reimbursement agreement
b. Facilitate development of the MSUIC
2. Facilitate the development of a downtown hotel
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a. Element (old Kenyon Noble Site)
b. Etha (Armory Site)
c. Lark (Imperial Inn Site)
3. Sell the North Park
a. Offer made at appraised value ($1.5M)
b. Negotiating a P & S agreement
4. Hire an ED Specialist
a. Onboard to organization
b. Deep dive on ED priorities and projects
5. Sector Development Initiatives (includes materials, conferences, events, website, org structure and leadership)
a. The Bozeman Outdoor Network (CoB/NRMEDD)
b. The Montana Photonics Industry Alliance (CoB/Prospera)
c. Bio/Pharma (in discussions with Don Beeman, Ligocyte) (CoB/Prospera)
d. The Montana High Tech Alliance (Gianforte/CoB/NRMEDD)
e. Social Sector (CoB/NRMEDD)
6. The Bozeman Broadband Initiative
a. Appointed Chair of the BBSC after Dewitt
b. Identified the path forward
c. Built a coalition of resource partners
i. City, County, MSU, BSD7, NWE, Chamber of Commerce, 2 TIF Districts, BDH, Prospera (BSTF grant) and the NRMEDD (EDA grant)
d. EDC involvement
e. Master Plan in the works
7. Marketing Collaborative
a. Working with EDC
b. Leveraging Chamber relationship with Flying Horse
c. Short term goal - Media library
d. Long term goal – participate in a large scale branding campaign
8. Community Outreach (Delivering the message of job creation and industry diversification)
a. Guest of several service orgs including Rotary, Exchange, League of Women’s Voters, First Presb. Church, GAR, legislative candidates and sitting
legislators, growing and prospective businesses and many others.
9. Social Media
a. Launched outreach campaign
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b. Increased facebook activity
i. 1950 likes as of 12-24-15.
ii. Roll out Business Vignettes program for summer months
10. Town/Gown
FY I5
1. Sector Development
a. Photonics
b. The outdoor industry
2. Sell the North Park property
3. Support the development of the MSU IC and the Technology TIF
4. Support the development of a downtown Hotel
5. Broadband
6. Improve the ED web presence incorporating more social media outreach
7. Data
8. Broadband Master Plan
9. Develop the Downtown
a. Hotels
b. Infill
c. Industry Diversification (downtown tech campus)
10. Convention Center
11. Continue to support sector development initiatives
a. High-tech
b. Social sector (non-profits)
FY 16
1. Completed Bozeman Fiber Master Plan (Commission Goal)
a. $105,000 in grants and outside funding
i. $25,000 from the Big Sky Economic Trust Fund in partnership with Prospera Business Network
b. Proposed public-private partnership likely to deliver nearly $3.5 million in outside funding and allocating risk away from the City and
taxpayers
c. Ongoing discussions about private data center development
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d. Fiber for connecting City buildings and expanded City use for City applications like public safety wireless backhaul and wired SCADA
2. Photonics Sector Development
a. Continued growth of the Bozeman, Montana presence at Photonics West trade show in continued partnership with Prospera Business
Network and the Governor’s Office of Economic Development
3. North Park Industrial TIF (Commission Goal)
a. Under Contract for Development
4. High Tech
a. $30,000 in Primary Workforce Training Grant for Elixiter (software as a service marketing firm) through a collaboration with Prospera
Business Network
5. 3 New Downtown Hotels (Commission Goal)
6. Led the engagement of the business community in the development of the Storm Water Utility
7. Assumed responsibility for management of 4 tax increment finance districts in FY 2015
a. Staff support to 4 TIF Boards
b. Infrastructure Project and Contract Management
c. Urban Renewal Grant Administration
d. Creation and Management of Incentive Programs
e. Update TIF plans and policies
f. Implement expansion, bonding, and reimbursement agreements to facilitate large projects
FY 17 Preview
1. Update the 2009 Economic Development Plan
2. Support the development of a Foreign Trade Zone
3. Support Startup Bozeman (Accelerator Project)
4. Facilitate the Bozeman Fiber Public/Private Partnership
5. Continue Support of the Photonics Sector
6. Continue Marketing Collaborative
7. Specialized Legal Services to Support ED Projects
a. TIF Management and Incentives, North Park Sale, Broadband, Convention Center
8. Grow Professionally and Learn New Skills
a. IEDC Certification in 4 years for ED Staff
9. Reclassification of the Economic Development Specialist to Economic Development Project Manager
10. Add one new FTE as an Economic Development Specialist (with an emphasis on supporting the TIF district boards.
11. Incubator/Accelerator
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