By Philip Haldiman, Independent Newsmedia

Peoria could see as many as 10,000 new jobs as two companies have named the city as a finalist in their site-selection processes.

Economic Development Director Scott Whyte said a Fortune 100 manufacturing operation has set its sights on the Vistancia commercial core in North Peoria proposing about 500,000 square feet and 2,500 jobs in the first phase, then 3 million square feet and 5,000 jobs at build-out.

Peoria is competing against one other state nationally for this company.

He said the second project is a large advance business services company targeted for the P83 area proposing 300,000 square feet and 2,500 jobs.

Mr. Whyte said he can’t comment on the two companies because they have non-disclosure agreements, but he did say Peoria has never been a finalist in site-selections of this magnitude.

Additionally, Maricopa County Integrated Health System broke ground on a 127,000-square-foot medical center in January. The center is expected to bring 320 jobs to about 20 acres to the southeast corner of Grand Avenue and Cotton Crossing in South Peoria, he said, making 2017 a successful year in attracting targeted industries to Peoria.

While Mr. Whyte stated being a finalist in a site-selection doesn’t guarantee Peoria will be chosen, it does validate the city’s economic development path is beginning to pay off.

“People are starting to see us differently. People are starting to see the West Valley differently. That is important because our objectives require the West Valley to be viewed differently, not just Peoria, because the work force and perception is a regional issue,” he said. “So I’m really excited about this market validation because it shows we got it right and now we just need to pursue even harder.”

The Vistancia commercial  core is a 320-acre shovel-ready site zoned mixed-use/commercial and adjacent to Loop 303.

Jim Belfiore,  president of Belfiore Real Estate Consulting, said it is absolutely vital that a good company anchor itself in the Vistancia commercial core area.

“Housing within and around the master-planned community is generally upper-priced, move-up housing,” he said. “Ideally, the company locating within would offer higher incomes so that the people working in the community could also afford to live in Vistancia.”

As part of its Economic Development Implementation Strategy II — a council-approved document that provides a pathway to successful economic development — the city has made it a priority to attract advanced industries to Peoria to ensure long term prosperity for its residents. Advanced industries typically involve the use of technology to improve or process products.

Councilwoman Bridget Binsbacher, who represents North Peoria, said Vistancia is home to a highly talented, well-educated workforce, and it is in the city’s best interest to keep their talents within our borders.

“A large company locating in the Vistancia commercial core would complete the cornerstone of what we are trying to achieve, which is a well-rounded community that offers residents both a high quality of life and nearby employment opportunities,” she said.

The real estate industry has become more nuanced in  recent years, so site-selection searches have become more common.

Mark Williams, board chair of the Site Selectors Guild, said larger companies use site selection professionals because making a mistake in choosing a location can be extremely costly and last forever.

Mr. Williams, also  president of South Carolina-based Strategic Development Group, has worked on a number of site-selection projects over the last 15 years, including the Bridgestone Biorubber Process Research Center and Commercial Metals Company manufacturing plant, both in Mesa.

He said site selectors figure out the cost of the development, operattion as well as incentives and do a financial analysis to compare the short list sites from a financial perspective.

“The concept is that a company, say a manufacturer, needs to make a product, distribute it, have a workforce, etc. So they need to find a site to operate efficiently. They could be interested in utility services, water, sewer, gas, all those sorts of things, and they need a labor force with a certain skill set,” he said. “So we evaluate what the client needs to make a project successful, including the  financial situation, including taxes, land cost, site improvement costs, anything that is a plus or minus to their decision. We do an analysis of those costs, and compare each site on those bases.”

There are nearly 215,000 jobs located 30 minutes from Vistancia and about 580,000 jobs located 30 minutes from the P83 Entertainment District, according to city documents. But Peoria residents are generally leaving the city to drive to these jobs and beyond.

Rusty Kennedy, senior vice president for advisory and transaction services at commercial real estate broker CBRE, said labor is a huge driver in attracting companies during a site-selection process. He said companies will seriously consider cities that have access to a large labor force.

“As an employee, if you are looking at a job with the same amount of money and benefits, but you are going to save 30 minutes or more on your commute, you are seriously going to think about that job,” Mr. Kennedy said.

He said Peoria’s focus on bring advanced industry jobs to the city could yield returns in the next 10 to 15 years, and could be one or two massive businesses from really taking off. Other municipalities could learn from them and their strategic planning, he said.

“Peoria is the epicenter of a massive labor base and they realize the need for more development and the city has gotten behind it. They are saying, ‘yes, let’s do it, but let’s be strategic about it,’” he said. “The story of Peoria is incredibly compelling.”

Economic development

This story is the first of two installments exploring economic development in the city of Peoria. It looks at Peoria becoming the finalist for two large businesses in a national site-selection process and how it could bode well for the city’s future. Next week, Peoria Today looks at a number of properties the city is marketing to bring advanced industries to Peoria.