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FREDERICKSBURGREGIONAL ALLIANCEAnnual Report2004-2005CITY OF FREDERICKSBURGCAROLINE COUNTYKING GEORGE COUNTYSPOTSYLVANIA COUNTYSTAFFORD COUNTY
Letter to InvestorsOctober 31, 2005DEAR INVESTOR,Thank you for your continued support of regional economic development and the opportunity to present the Fredericksburg RegionalAlliance’s 2005 Annual Report.We are pleased to report that the Allianceassisted with 16 announcements during thepast year, resulting in 41.5 million in capital investment and the creation of 765 jobs.These and other projects in the future will helpdrive the regional economy at a strong rate ofgrowth for several years to come.During 2004, the volume of all goods andservices produced in the region grew 6.5%,totaling over 7.9 billion. Virginia’s economyas a whole expanded at a rate of 5.1% whilethe national economy grew at 3.5%. Furthermore, continued strong economic growthshould maintain or decrease the region’simpressive unemployment rate, which ended2004 at 2.8%.During the past year the Alliance employedseveral integrated marketing strategiesaimed at increasing project activity. TheFRA sponsored four meetings with brokers inRichmond, Baltimore, Washington, D.C. andNorthern Virginia, which gave the Region anaudience and networking opportunities withover 250 commercial real estate brokers. TheAlliance continues to focus on brokers andsite consultants because 90% of all prospectsutilize their services.The 2004 Target Mail Campaign reached1632 corporate executives, commercial brokers, site consultants, government agencies,and defense contractors. The Alliance also ran14 ads promoting the region and had 3 major editorials with 19 pages of total coverage.Combined, these activities help saturate the2market and increase name recognition withcorporate decision makers .In 2004 the staff handled 131 projects with87% being generated by the Alliance. Therewere nine announcements for a project conversion rate of 6.8%, which is well above the national average of 2%. All nine announcementswere from Alliance-generated projects.Current project activity in direct contact withthe Alliance is at its highest level in six years.We are receiving more requests for office spacethan for manufacturing or warehouse space,which further supports the fact that the localeconomy is creating more higher-paying jobs.The region continues to create wealth and increase incomes at a strong pace. In 2004, bankdeposits at regional banks totaled over 2.6billion, an increase of 13% from 2003.Activity on the Alliance’s website has increased by over 45% over the past year andthe on-line site and building database continues to be one of the most heavily viewedareas on the site. In a recent meeting with 33brokers, 95% of those in attendance statedthat they use a regional website for the initialgathering of information regarding a projectand that an accurate and updated databaseis crucial in their decision making process.During the past 8 months, staff has had theopportunity to meet with 44 local companiesas part of the Existing Industry VisitationProgram. The valuable information obtainedfrom these meetings is being used in all portions of the Alliance’s mission, and FRA staffstands ready to assist local companies in theirexpansion efforts.With regard to local expansions, the Allianceis pleased to note the announced expansionof Mary Washington Hospital. MediCorpHealth System continues to be a strong asset of the region, providing state-of-the-arthealth care while significantly enhancing theoverall economic and employment base ofthe Fredericksburg Region.One of the long-term effects of BRAC was theopportunity it presented to the region for thepublic and private sector to cooperate andachieve a common goal. The Alliance contributed 20,000 to the Fredericksburg RegionalChamber of Commerce to support this effort,which was one of the larger investmentsmade in protecting our military bases anddefense industry.The Alliance continues to partner with publicutilities, the Virginia Economic DevelopmentPartnership, each area locality, and otherorganizations to increase regional name recognition through attendance at trade shows,face to face meetings with corporate decisionmakers, and direct contact with senior realestate managers at various federal agencies.The Alliance is equally pleased to report that98% of all pledges were collected during thelast fiscal year.I would like to again thank the public andprivate sector investors, the FredericksburgRegional Council, the Rappahannock AreaDevelopment Commission, the FredericksburgRegional Chamber of Commerce, the VirginiaEmployment Commission, our educational institutions, public utilities, our legal counsel, eachmember of the Alliance Board of Directors, andthe Alliance staff for their assistance in promoting economic development in the region.G. William BealeChairman of the Board
MissionStatementThe Fredericksburg Regional Alliance is aneconomic development organization thatpromotes and assists existing businesses andhelps aggressively market the FredericksburgRegion to corporate decision makers whoare planning to expand or relocate theircompany. The Alliance, which receives bothpublic and private funding, works in closepartnership with officials from the City ofFredericksburg and the Counties of Caroline,King George, Spotsylvania and Stafford toprovide a wide range of services designedto facilitate the creation of higher payingjobs while increasing the tax base.3
The Leadership:A Public/Private PartnershipBOARD OF DIRECTORSOFFICERSDR. WILLIAM ANDERSON, JR.President, University of Mary WashingtonMR. JOSEPH GREENEPresident, Mid-Atlantic FoamMR. G. WILLIAM BEALEChairmanMR. JOSEPH ANDREWSVice President, Real Estate, Luck StoneMR. GARY JACKSONBoard of Supervisors,Spotsylvania CountyMR. JOSEPH GREENEVice ChairmanMR. G. WILLIAM BEALEPresident, Union Bank & Trust CompanyMR. THOMAS BRICKENSands Anderson Marks & MillerMR. CHARLES McDANIELChairman of the Board,Hilldrup Moving & StorageMR. CEDELL BROOKS, JR.Board of Supervisors, King George CountyMR. FRED RANKIN, IIIPresident & CEO,MediCorp Health SystemMR. JACK CAVALIERBoard of Supervisors, Stafford CountyMR. LARRY SILVERCEO, Silver CompaniesMR. RONALD DAVISPresident, Virginia Heartland BankDR. THOMAS TOMZAKMayor, City of FredericksburgMR. KENT FARMERPresident, RappahannockElectric CooperativeMS. LINDA WORRELLPresident, Fredericksburg RegionalChamber of CommerceMR. ROBERT FARMERBoard of Supervisors, Caroline County4MR. GENE BAILEYPresidentMR. RUSSELL SEYMOURVice PresidentMR. KENT FARMERTreasurerMR. TOM BRICKENSecretary & General CounselSTAFFMR. GENE BAILEYPresidentMR. RUSSELL SEYMOURVice PresidentMR. JEFF DOWDELLMarketing & Research ManagerMR. NOAH EAMESCorporate Administrative Assistant
Alliance InvestorsA-Long Realty AdvisorsAnderson & StrudwickAugustine Golf ClubBankers InsuranceBattelle Memorial InstituteBB & TBinswangerBirchwood Power Partners, L.P.Brandywine Company PropertiesCardinal Press, Inc.Cardinal TravelCaroline CountyChrismarr Commercial PropertiesCity of FredericksburgDickinson Equipment, Inc.Dominion Virginia PowerEngineering Consulting ServicesFredericksburg Distributing CompanyFried Companies, Inc.Fredericksburg IDAFredericksburg Regional CouncilThe Free Lance–StarGarrett Development GroupGeico DirectGreenhorne & O’MaraHazel Land CompaniesHerlong Associates, Inc.Hilldrup Moving & StorageHilldrup PropertiesIntuit, Inc.Johnson Realty AdvisorsKBSKing George CountyLuck StoneMcQ AssociatesMediCorp Health SystemMidAtlantic BroadbandMid-Atlantic FoamMITCO Land Development CompanyMonmouth North Limited PartnershipNational Bank of FredericksburgNoble CarsNTS VA Development Co. Fawn LakeOld Dominion Electric CooperativeP.C. Goodloe & Son, Inc.Patriot BankPayne Trucking CompanyPBGH, LLPEssex Group, Inc.PermaTreat Inc. - Corporate OfficePohanka Nissan CadillacRADCORappahannock Electric CooperativeREDCORMS EnterprisesRobert B. Payne, Inc.Rosner MotorsSands Anderson Marks & MillerSelling PowerSilver CompaniesSpangler Erkert & AssociatesSpotsylvania CountySpotsylvania IDAStafford CountyStafford IDATaskforce StaffingTommy Mitchell Real EstateTricord Inc.Ukrop’s/First Market Bank FundUltimate Pontiac, Buick, GMC, IsuzuUnion Bank & TrustUniversity of Mary WashingtonVerizonVirginia Community BankVirginia Credit UnionVirginia Heartland BankVulcan Materials CompanyWachovia BankWeb EquipmentWorrell Management GroupTHANK YOUThe Alliance would like to thank all of our public and private sector investors, without whose participation none of our activities would be possible. We arepleased to announce that the Alliance maintains a 98% collection rate on all pledges in Fiscal Year 2005. Thank you for your continued support.5
Demographic and Economic TrendsAs it has over the past eight years, theFredericksburg Region continues to be thefastest growing region in Virginia. As youwould expect with this type of growth, theregion’s civilian labor force has maintaineda steady increase over this same period andthe unemployment for the FredericksburgRegion continues to be well below the stateaverage.POPULATION 2000-2004CIVILIAN LABOR FORCEUNEMPLOYMENT 7,458,900100,00050,00020052004Source: Virginia Employment Commission20.5%10.4%5.6%1.6%5.4%Source: Weldon Cooper Center for Public ServiceAUGUST 2004AUGUST ICKSBURG REGION 2.9%2.8%3.7%FredericksburgCaroline CountyKing George CountySpotsylvania CountyStafford County150,0000RADCONorthern VirginiaRichmond RegionalHampton RoadsVIRGINIA%CHANGE2000-2004Virginia3.8%Source: Virginia Employment CommissionTAXABLE SALES FORREGIONTOTAL EMPLOYMENT IN THE REGION160,000140,0002004120,000Source: Virginia Dept. of Taxation100,00080,000Total EmploymentSource: Virginia Employment Commission6
Strong Economic BaseThe Fredericksburg Region’s economic base continues to strengthen and expand. The Regionhas seen growth in the number of Business Establishments, the Average Annual Weekly WageRate and Taxable Sales. This type of economic growth illustrates the strength of the Region’sexisting businesses and their continued commitment to the area.BUSINESS ESTABLISHMENTSIN THE REGION6,200AVERAGE ANNUAL WEEKLY WAGERATE CONTINUES TO RISE 720 7006,000 680 660 640 620 600 580 560 540 520 500Business EstablishmentsSource: Virginia Employment CommissionWeekly WageSource: Virginia Employment CommissionREGIONAL TAXABLE SALES VS. STATERADCOVIRGINIA19992004%CHANGE1ST HALF 2005 1,961,794,515 64,068,575,397 3,181,154,048 81,291,117,47262%27% 1,640,863,333 40,855,436,7887
Target MarketingReaches theDecision MakersREGIONAL COMMERCIAL REAL ESTATE BRIEFINGOn October 3, the Fredericksburg RegionalAlliance hosted a luncheon to discuss the local real estate market and current prospecttrends, as well as possible implications ofthe BRAC on the Fredericksburg office spacemarket. One item of particular interest wasthe recent shift the region has experienced inthe types of existing buildings being requested. In 2004, 60% of all building requestswere for office space, with the majority being class A, and 40% being manufacturing,warehouse and distribution. This represents acomplete reversal of where we have been forthe past 5 years. Based on 2005 numbers,this trend is continuing.The keynote speaker for the meeting wasMr. Richard Engel. Mr. Engel, representingthe consulting firm Marstel Day, has over30 years of experience with the Naval Facilities Engineering Command (NAVFAC),retiring as the head of the Real Estate BaseClosure and Land Use Support Section.KNOWLEDGE,EXPERTISE ANDPARTNERSHIP:FRA/VEDP BRIEFING“Knowledge, Expertise and Partnership”was the theme for the March 31, 2005 luncheon held by the Alliance for the ProjectManagers of the Virginia Economic Development Partnership (VEDP). The purposeof this luncheon was to provide the managers with an overview of the FredericksburgRegion and to highlight recent successstories, new marketing programs, currentmarket trends, and construction projectscurrently underway in the region. Eventssuch as this are opportunities for theAlliance to remain in the forefront of thestate’s marketing organization.8
MD, DC AND NVA BROKER LUNCHEONOn September 19, the Alliance held a broker luncheon at theOmni Shoreham Hotel in Washington, D.C. for commercialreal estate brokers from Maryland, Northern Virginia andWashington, D.C. This was the first meeting of this kind in thenation’s capital and was set up by the Alliance to specificallytarget brokers working with government agencies and contractors that may be looking to relocate as a result of the latestBRAC Commission. Meetings such as this are conducted by theAlliance on a regular basis to remind commercial brokers toconsider the Alliance as a resource and to inform them of theservices that the Alliance provides. The Alliance currently holdsmeetings in Maryland, Northern Virginia and Richmond on arotating basis.WEBSITE USAGE CONTINUES TO RISEIn 2003, the Alliance redesigned its websiteto provide more information to both existingand prospective businesses, while maintaining an easy to use format. Since that time,usage of the site has continued to rise.Today, the need for immediate informationin a global market is no longer the exception,but the norm. The Alliance will continue toprovide this level of service, ensuring thatvital information about the FredericksburgRegion is accessible 24 hours a day to localbusinesses and corporate decision makersaround the world.Website Activity: Number of Requests9
Supporting Local CompaniesNEW ONLINE WORKFORCERESOURCE CENTERIn 2004, the Fredericksburg Regional Alliance, workingin partnership with Employment Resources Incorporated,The Fredericksburg Area Metropolitan Planning Organization, the Fredericksburg Department of Social Services,Germanna Community College, Regional Adult Educationthe Virginia Department of Rehabilitative Services andthe Virginia Employment Commission, came together todiscuss ways to improve workforce assistance efforts inthe Fredericksburg Region. In September of 2005, theresults of their efforts became a reality in the creation ofa “one-stop” online employment resource center for bothemployers and employees. The website (www.frwrc.com)provides employment assistance and workforce resourcesto employers and employees in the Fredericksburg Region.By working together, the Workforce Group is able to provide quick and easy access to a wide variety of programsand services.MAGAZINE HIGHLIGHTS GERMANNACOMMUNITY COLLEGEGermanna Community College’s new Center for Workforce and Community Education washighlighted in the August 2005 issue of Virginia Business Magazine. The new 40,000 squarefoot facility, located on the Fredericksburg campus, is another example of Germanna’s commitment to the Fredericksburg Region and to its workforce. The report also drew attentionto the Fredericksburg Region’s skilled labor pool, noting that it was a “key reason for theFredericksburg area’s economic success.”10
SENATOR GEORGE ALLENVISITS REGIONOn August 15, 2005, the Fredericksburg Regional Alliancehosted a business roundtable discussion with Senator GeorgeAllen. Approximately 120 local business and community leadersattended the event and were able to hear the senator discussa number of current business issues impacting economicdevelopment. Senator Allen highlighted current legislativeefforts being made by Congress to address such issues asnanotechnology funding, international trade policy, and identitytheft protection. Other issues mentioned were immigrationpolicy, homeland security initiatives, and the impact of the BRACrecommendations on the region’s three military bases.THANK YOUFrom its earliest days as a thriving Colonial seaport, the FredericksburgRegion has excelled in commerce and industry. Today, the FredericksburgRegion is home to over 6,000 businesses. These businesses account forover 70% of all jobs created in the region and are the driving force behindour region’s strong industrial tax base.While the importance of these factors is clear,the contributions of our region’s existingbusinesses go far beyond statistical measure.Local businesses enrich our daily lives withthe thousands of products and services theyprovide, and are excellent stewards, givingback to our community each year throughvolunteerism and charitable donations.During National Business Appreciation Week, the Fredericksburg RegionalAlliance, the City of Fredericksburg and the Counties of Caroline, KingGeorge, Spotsylvania and Stafford wish to thank the local businesses thathelp make the Fredericksburg Region such an enviable place to live andwork. And remember, the next time you need a product or service,look to an existing local business. Support the local companiesthat do so much for our community.The Fredericksburg Regional Alliance540-361-7373 www.fra-yes.org2005 BUSINESS APPRECIATIONWEEK ADTHE 2005 VIRGINIA NIPPON CLASSICIn May 2005, the Fredericksburg RegionalAlliance and the Virginia Economic Development Partnership hosted the 15th AnnualVirginia Nippon Classic at Mattaponi SpringsGolf Club in Caroline County. This premierbusiness conference and golf tournamentincluded executives from over 95 Japaneseaffiliated firms that have investments inVirginia and was an excellent opportunity toshowcase the Fredericksburg Region. This isthe second time the Fredericksburg Regionhas been chosen to host this event by theJapan-Virginia Society. The event has previously been held at the Fawn Lake CountryClub and Augustine Golf Club.11
Return on Investment: AllianceReaches Broader MarketFREDERICKSBURG REGIONAL ALLIANCEFY-2005 MARKETING CALENDAR OF EVENTS WITH VEDP*Industry Trade ShowsSemicon WestIMTS 2004SUES JapanCoreNet Global SummitMedicaPhotonics West 2005Hanover IndustrialCoreNet Global SummitSUPERCOMM 2005Places/DatesSan Francisco/July 14-16, 2004Chicago/September 8-15, 2004Atlanta/October 9-12, 2004San Antonio/November 6-10, 2004Germany/November 22-27, 2004San Jose, CA/January 22-27, 2005Hanover, Germany/April 11-15, 2005Toronto/April 17-18, 2005Chicago/June 5-9, 2005Marketing MissionPennsylvania/New Jersey Marketing MissionMay 2-5, 2005*These ten marketing events conducted with the Virginia Economic Development Partnership resulted in establishing networking opportunities with 163 executives indomestic and global companies.MARKETING EVENTS SPONSORED OR ATTENDED BY THE ALLIANCE*Marketing EventsVEDP European Representative TourRegional Presentation to VEDPNavy ForumGarrett Development Corp./VEDP BriefingDahlgren CommandVirginia Nippon ClassicPlaces/DatesOctober 25, 2004Richmond, VA / March 31, 2005Reston, VA /April 23, 2005Stafford, VA /April 28, 2005Dahlgren, VA /May 5, 2005Mattaponi Springs, VA /May 13, 2005Marketing MissionBoston, Mass. Marketing MissionMay 25, 2005*As a result of these 7 events, 178 long term contacts were made which will continue to be useful in promoting the region.12
DIRECT MAIL CAMPAIGNTarget Audience# of PiecesCommercial Brokers275Government Contractors, Technology 300Companies, Defense ContractorsSite Consultants330Navy Forum MailerDepartment of Defense MailerCoreNet MailerRegional Commercial DevelopersIndividual Letters to CorporateExecutivesTotal Pieces6511026032260Market DescriptionCommercial Real Estate brokers in Northern VA, Maryland, Richmond, and D.C.Companies in Northern Virginia, Washington, D.C. and Maryland. Identified by Dr. Fuller aspotential companies that could benefit from the region’s workforce and lower operating costs.National and International site consultants and site selection firms. The majority oftheir clients are Fortune 500 companies and other nationally recognized corporations.Highly advanced defense technology companiesDefense contractorsFortune 500 Corporate Real Estate Executives and National/International Site Consultants.Commercial development firms located in N
Fredericksburg Distributing Company Fried Companies, Inc. Fredericksburg IDA Fredericksburg Regional Council The Free Lance–Star Garrett Development Group Geico Direct Greenhorne & O’Mara Hazel Land Companies Herlong Associates, Inc. Hilldrup Moving & Storage Hilldrup Properties Intuit
