Tempe Chamber of Commerce hosted its second Economic Outlook at Grace Community Church on Jan. 26, with city leaders and members of the local business community discussing tourism, business resources, economic development and what’s in store for Tempe’s business community in coming years.
At the event, the chamber organized panel discussions that focused on Tempe hospitality and tourism and access to capital for businesses, featuring experts from Arizona Theatre Co., ASU Gammage, Landings Credit Union and more.
Tempe Economic Development Director Mike DiDomenico also delivered a presentation on economic development throughout the city, highlighting current data and coming projects that the business and residential communities should look out for.
Also representing the city, Mayor Corey Woods, along with economist Jim Rounds, spoke with Chamber President and CEO Colin Diaz in a fireside chat about the future of Tempe and how its economy has evolved.
Rounds closed out the event with a keynote speech on the state of the economy and why public policy matters to the business community.
Panels and discussion
The first featured panel had Tempe Tourism President and CEO Michael Martin moderating a discussion with Deputy Director of Arts and Culture Brendan Ross, ATC’s Paula Taylor and ASU Gammage’s Director of Marketing and Communications Theresa Dickerson.
In their discussion, Martin asked the panelists questions about what their work entails, how arts and culture contribute to Tempe’s tourist appeal and what the business community has to gain from cultural experiences like programming at TCA or ASU Gammage.
Ross highlighted the city’s recent participation in a national study on the arts and economic prosperity, which surveyed a number of arts and cultural organizations’ audiences to determine the economic impact of these experiences.
From left to right, Deputy Director of Arts and Culture Brendan Ross, ATC’s Paula Taylor, ASU Gammage’s Director of Marketing and Communications Theresa Dickerson and Tempe Tourism President and CEO Michael Martin discuss Tempe's tourism and hospitality industries.
Independent Newsmedia/Caroline Yu
(Independent Newsmedia/Caroline Yu)
“Arts and culture organizations are of course creative businesses themselves that generate about $49 million worth of spending each year,” Ross said.
On top of the spending on tickets to events, there is an additional $53 million in event-related spending generated through parking, dining, child care and more, based on this data. Ross added that Tempe arts and cultural organizations create about 1,800 jobs and $102 million in spending, making it a small but mighty sector of the local economy.
The group also talked about building cultural wealth in the community as it brings about more diversity in productions and becomes more accessible to the public with affordable ticket pricing. They also talked in brief about the recovery from the pandemic, which is ongoing but has seen improvements through different collaborations.
Following the discussion on tourism, the next panel was led by Chamber Director of Business Development David Key and featured Landings Credit Union Vice President and COO Cecilia Ashe, Arizona Capital Source Vice President Ashley Mapes and Arizona Microcredit Initiative’s Aarin Shah.
During their conversation, Key asked the experts about best practices for local businesses in securing capital, touching on the micro-loan process, consulting and supporting underserved business owners.
From left to right, Arizona Microcredit Initiative’s Aarin Shah, Arizona Capital Source Vice President Ashley Mapes, Landings Credit Union Vice President and COO Cecilia Ashe and Chamber Director of Business Development David Key discussing access to capital.
Independent Newsmedia/Caroline Yu
(Independent Newsmedia/Caroline Yu)
The panelists spoke of how businesses should be well versed in their financials, coming prepared to credit unions with the right expectations for securing loans and specific on how a loan will be spent to support their business.
Arizona Microcredit Initiative’s Shah talked more about the group’s experiences in providing funding to local businesses, noting that they work on a smaller scale with companies that have typically just started.
Addressing a question on what trends he’s seen in businesses successfully reinvesting their loans, Shah said that Arizona Microcredit Initiative’s application is very detailed so that their loans can be used to fund a business’s specific needs with the necessary support.
“We look at just something that will aid your business, we don’t usually give money just to pay employees or to pay off debt,” Shah said.
The other panelists echoed similar sentiments, saying that with considering the disbursement of a loan, it’s important to use the borrowed funds for specific needs that will contribute to the growth of the business and to be transparent with the lenders they work with.
Ongoing development
And highlighting current economic developments, Mike DiDominico presented the audience with data on Tempe’s demographics, notable wins for the city’s development department and some of the ongoing projects in the city.
Notable wins discussed were Chandler-based Offerpad Solutions Inc. leasing 40,000 square feet at the Beam, 100 Mill and the first tower of IDEA Campus being fully leased, and the approval of 3,500 new housing units in the last year.
“It equates to about 80,000 people, you know, every style of housing unit will determine how many people really live there, but on average, it’s going to be about 1,000 people,” DiDomenico said.
Affordable workforce housing is an ongoing issue for the city, with a number of Tempe workers having to commute to the city.
In terms of development projects to come, he highlighted Hayden Flour Mill, the Tempe Performing Arts Center, Danelle Plaza, affordable housing in north Tempe and the ongoing Downtown Tempe Refresh. These projects are in the works and will be completed in the coming years.
One attendee asked DiDomenico about the plot of land that was proposed to be developed into the Tempe Entertainment District, which voters rejected in the March 2023 election. He said that the site is undergoing an environmental assessment and that a request for proposals process will likely go out once more information is available about the state of the site.
“We’ll go out to the public and try and find out potential uses for the site, but it’s a 46-acre site and it’s the largest developable piece that the city owns and exists in the city,” he said.
Economic development going forward
In the final segments of the event, Mayor Woods and President of Rounds Consulting Jim Rounds engaged in a discussion on the current state of the city’s economic development and what it could transform into in the future.
The pair discussed a range of topics, including current and future economic trends shaping Tempe, what about the city’s economy sets it apart from other Valley communities, strategies for attracting new businesses and what economic resources are available to support the local business community.
Commending the city’s leadership, Rounds said that as both an economist and Tempe resident the current developments that are in the works reflect how Tempe is coordinated in moving forward and has created a real sense of community, competing with East Valley communities that have rivaling attractions.
“I think it’s important to have a sense of community for the economic development to happen. I think you have to have these places, you have to have the university aspect, you have to have the mill working, you have to have everything else working,” Rounds said.
Mayor Woods spoke of city leadership's investments in the business community and the diversification of industries in Tempe during this discussion.
Independent Newsmedia/Caroline Yu
(Independent Newsmedia/Caroline Yu)
Downtown Tempe has long been an attraction for Valley residents, but recent years have brought about new businesses, hotels and more that have created a new life that competes with other municipalities’ efforts to bring in people — whether that be Tempe residents or visitors.
This diversification of the economy in the last few years is what Mayor Woods said is one of the biggest contributors to the economic trends in Tempe and what trends could come in future years.
“It’s really because we have different people here than we’ve had in quite some time, and so the environment has to continue to evolve,” Woods said.
In considering where to make investments in the city’s economy, he explained that there’s a new generation of Tempe residents with a range of interests, and thus the city is looking to provide those people with offerings that appeal to them.
Supporting those goals, both the mayor and Rounds discussed how necessary and purposeful investments by the city will be integral through efforts like the coming bond election to resurface Tempe streets and developments to create more housing options.
Jim Rounds, economist and Tempe resident, spoke on public policy concerning the local economy, commending Tempe's continued support for the business and resident communities.
Independent Newsmedia/Caroline Yu
(Independent Newsmedia/Caroline Yu)
Closing the event, Rounds gave a brief keynote speech on how statewide trends may impact the local economy and what coming public policy will mean for the community.
While issues persist in affordable housing and supporting the city’s growing workforce, he explained how it’s important for residents and businesses to be aware of related public policy that can help ease those concerns.
He also reiterated how important it is to have good, informed leaders who can make decisions with a sound understanding of the economy, meaning having the right data and collaborators, so that cities can be as successful as possible.
“You can be innovative, you can have state programs mesh with local programs, but we have to remember, as a city, you can’t do everything alone,” Rounds said.
Reporter Caroline Yu can be reached at cyu@iniusa.org. To voice your opinion on this story, connect with us at AzOpinions@iniusa.org.
Meet Caroline Caroline Yu joined Independent Newsmedia, Inc., USA, in 2020 as a summer intern covering Scottsdale. As an intern, she continued her coverage of Scottsdale, Paradise Valley and Tempe. After graduating in 2022, Caroline became a full-time reporter for Scottsdale and Paradise Valley. She is currently reporting for the Tempe market.
Community: She is a supporter of the environment and tries to get involved with related community events.
Education: Arizona State University with a BA in Journalism and Mass Communications, with a minor in French.
Random Fact: She used to be a ballet dancer for 10 years.
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Affordable workforce housing is an ongoing issue for the city, with a number of Tempe workers having to commute to the city.
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