Newport County Economic Development Opportunities

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Newport County Economic Development Opportunities

• Growing Jobs and Taxes For Today Tomorrow

By Keith W. Stokes - 2009
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Government Role In Economic Development

• Governments including Rhode Island tend to deal
  with symptoms of a poor economic structure, i.e.
  budget deficits, cyclic unemployment rates,
  declining tax revenues, small business closings,
  etc. and not the underlying problems of
  maintaining a sound economic structure.
• Local, state, and federal governments have the
  ability to influence economic development in two
  significant areas, tax structure and public
  infrastructure.
• Most businesses invest and prosper in areas that
  provide predictable, fair tax polices and quality
  public infrastructure and utility systems.
• ____________________________
• The Newport County Economic Development
  Opportunities Plan will focus on strategic
  public/private investments in public
  infrastructure and real estate that will maximize
  highest economic and tax returns.

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Newport County Employment Context

• 30,810 resident labor force
• 7 of Rhode Island jobs payroll
• 33,000 jobs
• 90 of Newport County economy is on Aquidneck
  Island

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Key Newport County Employment Industries

• Military Defense-Related Technology
• Marine Trades
• Hospitality Tourism
• Higher Education

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Newport County SWOT Analysis

• A Strength, Weakness, Opportunities Threats
  Analysis provides critical business planning
  information that helps match resources and
  capabilities to the competitive market in which a
  business and/or a community operates.
• Strengths Resources and capabilities that can
  be used for the basis of a
  competitive advantage.
• Weaknesses The absence of certain market
  strengths.
• Opportunities Areas for market growth and
  enhanced profits.
• Threats - Unforeseen and planned changes in
  market.

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Newport County Economic SWOT

• Strengths
• Newport - International Tourism Brand Name
• Narraganset Bay Sakonnet River
• US Navy Presence
• 18th 19th Century Historic Assets
• Proximity to Major NE Markets (Prov, Boston,
  Hartford)
• Great Average Wind Speeds Renewable Energy
  Options
• Weaknesses
• Aquidneck Island is States Largest Island with
  Limited Growth Capacity
• Quantity vs. Quality of Seasonal Visitors
• Lack of Utility Capacity
• Lack of Economy of Scale of Public Services
• Traffic Congestion Parking during Summer Season
• Local Labor force is limited
• Opportunities
• Navy Land Excess
• Federal Stimulus Funding for Critical
  Infrastructure Projects

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Critical Infrastructure Real Estate Investment
Opportunities
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Naval Station Newport Economic Value(2009)

• Property
• 1,503 acres
• 1.5 billion in property value
• Employees (officers/enlisted and civilian)
• Current full time staff (FY07) 5,467
• Future full time staff (FY10) 5,738
• Students (annually passing through all schools)
• Current 9,222
• Future 16,069
• Third largest employer in the State
• Payroll approximately 580M
• Contracts
• NUWC specialized services 191M with 123 M to
  RI businesses
• Contracts awarded for Construction 46.3M
• Contracts for services 9.5M

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BRAC 2005 Overview For Newport County

• Recommendations approved by the
  CommissionCommands leaving Naval Station
  Newport
• Navy Warfare Development Command to Norfolk, VA
  (FY10)
• Naval Reserve Readiness Command to Norfolk, VA
  (FY07)
• Chaplains School to Ft. Jackson, SC (FY10)
• Commands, consolidations resulting in increases
• Consolidate Officer Training Command Pensacola
  with Officer Training Command Newport (FY07)
• Naval Supply Corps School Center for Service
  Support, Athens, GA (FY10)
• Consolidate 3 RI Army Reserve Centers (FY11)
• Consolidate Naval Undersea Warfare Center
  Research Activities

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Projects in Process(Contracts Awarded)

• P370 Combat Training Pool 4.8M
• P102V Renovate Callaghan Hall - OTC 9.1M
• P100V Dental Clinic Addition/Renovation 3.5M
• P101V Naval Supply Corps School 24.5M
• P104V Renovate Fitzgerald Hall - CSS 4.4M
• Total 46.3M
• Funded by Base Realignment and Closure (BRAC)
  appropriations

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Naval Station Newport Contract, Business,
Construction Opportunities

• P101V Naval Supply Corps School First Naval
  Station Newport construction project utilizing RI
  General Contractor (H V Collins) in 10 years.
• RI Procurement Technical Assistance Center
  Coordinating small business seminars with RISBDC
  Newport Chamber on how to become vendors and
  suppliers for military contracts.
• RI Salutes Launched state-wide discounts
  shopping program for RI military personnel and
  families.
• SBA Section 8A Program Coordinate seminars for
  RI minority disadvantaged small businesses to
  do business with Naval Station Newport
  construction and operation contacts.
• Visiting Training Hotel Stays Refer visiting
• officers to local hotel opportunities.

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Newport County Economic Development Opportunities
There are a number of near-term, preplan and
capital development, utility, and infrastructure
investments required to augment economic and
employment opportunities related to defense
economic growth and industrial/commercial land
availability across Newport County. Each project
will have the direct opportunity to expand
industrial/commercial land use, utility capacity,
renewable energy, create jobs and expand local
and state tax bases over the next 1-5 years.
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• Naval Station Newport will release 10 acres of
  former naval hospital land and buildings in North
  End of Newport. City of Newport wishes to
  acquire land. Property includes over 250,000sf of
  buildings and 100 ft pier representing the
  largest, contiguous waterfront property available
  for redevelopment along Newport waterfront.

Project 1 - Former Newport Naval Hospital
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Project 2 Former Navy Lodge Property

• Naval Station Newport will release 3 acres of
  property located at Connell Highway and West Main
  Road (Route 114) in Middletown, Rhode Island.
  Property is located at largest traffic volume
  intersection on Aquidneck Island. Town of
  Middletown wishes to acquire navy land and create
  a master development plan for redevelopment of
  quarter mile traffic and commercial corridor of
  West Main Road to increase commercial base,
  affordable housing opportunities and improve the
  aesthetic appearance gateway to Newport.

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Project 3 Tank Farms 1 2

• Former navy tank farms 1 2 represent a combined
  150 acres of land abutting the Melville Marine
  Trades Center in Portsmouth. This is RIs
  largest location for marine trades services. The
  site also abuts Weaver Cove Marina, a fully
  permitted 1,500 slip marina scheduled to begin
  construction in 2009. The Town of Portsmouth
  wishes to acquire the property for future mix-use
  development with a focus on marine trades.

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Project 4 Regional Wastewater Facility
Development

• All former navy properties located on West Side
  of Aquidneck Island have little to no adequate
  utilities, particularly sewer and water treatment
  and distribution systems. Chamber has completed
  Phase I study to develop a regional wastewater
  facility to meet the new commercial investment
  needs of reuse of navy properties along with
  reducing affluent contamination of Sakonnet River
  and Narragansett Bay from failed septic and storm
  water systems.

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Project 5 Aquidneck Corporate Park Improvements

• Aquidneck Corporate Park located in Middletown is
  one of the largest, public/private commercial
  parks in Rhode Island. Many of the tenants are
  technology-based companies that serve as prime
  contractors for United States Defense contracts
  through Naval Undersea Warfare Center and
  Raytheon Company. Chamber and Town of Middletown
  has completed a comprehensive capital improvement
  plan for the park to accommodate tenant expansion.

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Project 6 US Navy Land-Based Wind farm
DevelopmentNaval Station Newport has identified
as part of 2035 Master Plan a requirement to
reduce electricity cost by 30 to remain
competitive with similar navy bases in East
Coast. Former navy tank farms 3 4 have been
identified as most optimal location for
development and operation of a utility-scale wind
farm.

• Newport County Has Best Average Annual (Land
  Base) Wind Speed
• Less Than 12.5 MPH
• 15 MPH Above

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Project 7 Melville Marine Center Expansion Plan

• Federal law adopted in 2002 authorizes U S Navy
  to sell 42 acres of waterfront property including
  pier facilities to State of Rhode Island through
  RIEDC for the purpose of expanding RI marine
  trades industry. As part of the sale, all navy
  utilities and future operation will be
  transferred from navy.

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Project 8 Tiverton Industrial Park Development

• Town of Tiverton has acquired 177 acres of land
  directly abutting Interstate 24 for the purpose
  of developing first industrial park in East Bay
  in several decades. Park will provide space for
  light industrial, original equipment manufactures
  (OEM) and suppliers directly related to regional
  marine and defense industries. Land is located
  within a RI Enterprise Zone.

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Project 9 - ONeil Properties Group Marina
Marine Village

• Proposed marine village and commercial center
  with 1,500 slip marina at Weaver Cove, Melville
  section of Portsmouth waterfront. Marina would be
  one of the largest in North East. Marine would
  directly service Melville Marine Trades Center.

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Project 10 Newport Gateway Center

• Attracting and servicing over 750,000 visitors
  annually, the Newport Gateway Center occupies one
  of Newports most prime real estate locations.
  The Central Newport Design Plan 2005 recommended
  the Newport Gateway Center could accommodate a
  redevelopment plan with enhance public parking,
  transportation along with new, mix-use real
  estate investment.