Welcome to the Town of Camp Verde Economic Development Page.  The Town of Camp Verde is committed to providing fast, efficient, and effective service to the business community.  The following is a brief summary of the Town’s economic development effort to provide a strong, diversified economic environment to support the high quality life style Camp Verde citizens’ desire.  Working with local government, private industry, educational institutions and the community at large we strive to keep Camp Verde a great place to live, a great place to work and a great place to do business.

CONTACTS:  Community Development Director; 473 S. Main Street, Camp Verde, AZ 86322, (928) 567-8513, ED@cvaz.org or Camp Verde Chamber of Commerce, 385 S. Main Street, Camp Verde, AZ 86322, (928) 567-9294.

The following is information regarding the plans that the Town of Camp Verde has implemented.

Town of Camp Verde Development Incentives Policy

In general, the Town Council’s Incentive Policy is based on two overriding criterions; 1) that a company or development must first prove to the Town Council that development incentives requested are needed and 2) that the economic or social benefits that the company or development brings to the community out-weigh the costs to the community of the requested development incentives.

Current Development Policy:

A.                 Consider town wide incentive requests on a case-by-case basis.  In addition, a company needs to meet at least three out of five of the Town’s Incentive Criterion in order to be considered for financial incentives.

B.                 Geography will be considered as one factor, but not the overriding one.  The result of this case-by-case analysis is a policy without specific geographic limitations.

C.                 Review “fast track” permit process policy:

1.     Set criteria

2.     Contracting out

3.     Cost estimates

D.                 The Town’s Incentive Policy is based on our General Plan “Growth Area Map,” the area designated as an Enterprise Zone, the Historic Downtown District as defined by the Town’s Land Use Map of the Town’s General Plan, other commercial areas within the Town limits, and other relevant factors affecting growth in the Town of Camp Verde.

E.                  On a case-by-case basis, the use of CDBG or other funds may be considered to pay all or a portion of the development and processing fees for qualifying projects.

F.       Agree to appropriate performance requirements or development agreements as a condition to receive incentives.  Essentially, a business would need to implement plans as stated, e.g., it would make capital investment and hire the number of employees as they said they would, etc.  The agreement will state that if performance requirements are not met, the Town would evaluate its options, such as denying future incentives or seeking reimbursement for past incentives, on a case-by-case basis.

Enterprise Zone

A.     Income Tax Credits

Arizona statutes provide for an income tax credit for net increases in qualified employment positions at a site located in an enterprise zone – except for those at a business location where more than 10% of the business is retail sales.  These credits may total up to $3,000 per qualified employment position over three years.

B.     Property Tax Reclassification

Arizona state statutes provide that the property tax reclassification is for qualified manufacturing businesses locating or expanding facilities in an enterprise zone.

Effective July 1, 1996, a qualified manufacturer in an enterprise zone is eligible for an assessment ratio of 5 percent on personal and real property in the zone for five years. 

Both enterprise zone benefits are available to qualified businesses through June 30, 2006.

* Note:  These are summaries of Arizona state statutes regarding Enterprise Zones.  Please see ARS §9-471.H-3 for further detail.

CRITERIA FOR FINANCIAL INCENTIVES:

Greater consideration for the Town of Camp Verde financial incentives might be given to firms that meet three or more of the five criteria listed below.  For example, a firm that meets four criteria would have a higher probability of receiving financial incentives than a firm that meets three of the following criteria.  Firms that may receive incentives:

1.      Jobs and Sales Tax – Businesses that create the equivalent of 10 full time employee (FTE) jobs or $500,000 in gross revenue.

2.      Are within the Town’s targeted industries:

a.      Manufacturing – Indoor manufacturing is necessary to provide a diversified economic base to create jobs and wealth in the community. Manufacturing must provide salaries of at least 100% of Yavapai County’s current median household income for full-time employees.

b.      Tourism Opportunities – One of the key components to repositioning the Town of Camp Verde as a regional destination is its location to I-17 and Highway 260.  To qualify for incentives, a business must contribute to the Town’s overall economic impact and enhance the recreation and destination focus of the Town.

c.      Retail projects – Large retail projects are facilities and improvements on a parcel or parcels of land with a primary activity of serving as a regional mall, automotive dealer or dealers, family entertainment centers or other large retail centers.  Each large retail project must expend a minimum of two million dollars ($2,000,000.00) in land and building improvements, as its initial investment at a single location; and generate a minimum of five million dollars ($5,000,000.00), or such other amount as set forth in the development agreement, in Town taxable retail sales annually.

     3.   Have infrastructure needs (water, wastewater, etc.) that are consistent with the Town’s environmental objectives, concerns and capacity based on a case by case review.

          4.     Demonstrate a positive economic impact for the Town over a ten-year period after both benefits and costs are calculated.  Company financial information must be made available to the Town showing a positive economic impact analysis.

          5.      Show a significant economic need for Town financial incentives.  Similar to “#3” above, confidential project pro-forma statements must be made available to the Town, which would document this need.

INCENTIVE TOOLS:

1)     Sales Tax Rebate:  Rebate a portion of the sales tax revenue generated by the development for reimbursement for development of public and quasi-public infrastructure improvements made by the development or for other public benefit.

2)     Direct Purchase or Lease of a Portion of the Development Project by the Town: Town purchase (including pre-purchase) or lease of portions of the development for public use or benefit.

3)     Direct Financing of Development Improvements:  Financing of public or quasi-public improvements or improvements which have or meet a public purpose within the development.

4)     Town funding for Existing Tenant Relocation, Environmental Clean-up and Demolition Expenses:  Use of Town and/or Federal funding may be allocated to pay relocation, environmental clean-up and demolition expenses related to “packaging” a development site, including tenant relocation, utility relocation, asbestos removal, structure demolition, etc.

5)     Direct Payment of Development Expenses for Non-Profit Organizations:  Use of Town or Federal funds to pay the direct development expenses for non-profit organizations developing affordable housing and/or other facilities for special-needs groups. (Note: Housing proposal must meet CDBG guidelines, Town’s Housing Strategy or other applicable grant guidelines.)

6)     Eminent Domain:  The use of eminent domain for the acquisition (using either private or public funds) of property within redevelopment areas.

7)     Waive Development Fees/Permits.

CAMP VERDE ECONOMIC DEVELOPMENT PLAN:  The Town Economic development Plan was adopted in 2000. The Plan builds on the area’s strengths of a solid, motivated workforce, low development costs, excellent access and location and an outstanding natural environment.  The Plan has three major elements. 

The first element is a focus on retention and expansion of existing business.  The Chamber of Commerce is the lead agency for this effort.  The Chamber is ready to work closely with business people to help those businesses be successful in our community.

The second element is to attract new business to the community that generates high retail sales without the need for a large pool of new employees from outside the region.  The Town of Camp Verde’s Economic Development Department is committed to working with new businesses to identify opportunities that benefit both the new business and the community.

The third element is to attract businesses, which pay in excess of $10.00 to employees without the need for a large pool of new employees from outside the region.  Again, the Town Economic Development Department is ready to assist new businesses with their transition to the Camp Verde area.

The Plan does recognize certain realities for economic activity in the Camp Verde area.  While we live in a beautiful area with access to a number of outstanding tourism sites, it is still part of the arid west.  Visitor services and agricultural pursuits have historically been very successful.  However, high water use manufacturing and processing may be difficult without significant water recycling capability.  The area boasts a well-educated, motivated, skilled workforce.  However, we are approximately 90 miles from the Phoenix metro area.  As a result, the available workforce might not support endeavors that require a very large employee pool.  We enjoy direct access to Interstate 17 with connections to both Interstate 40 and 10.  We do not have direct rail service or direct access to a public airport.  Camp Verde represents a unique opportunity for certain types of businesses to be successful in an outstanding environment.  If you have the vision to be one of those businesses, we are here to assist you.

COMMUNITY DEMOGRAPHICS:  As is much of Arizona, Camp Verde is growing.  Over the past decade, we have experienced a consistent 3% annual increase in population.  This translates into solid business opportunities and an expanding workforce.  We will post the latest US Census information on the community as it becomes available.  Currently, we have the Profile of General Demographic Characteristics which summarizes sex, age, race and household information.  Frequently, check back for the most up-to-date information.

RETAIL STUDY NOW AVAILABLE: The Town recently completed a Retail Market Analysis for the Camp Verde area.  A complete copy is available from the Economic Development Department for the cost of copying.  A few highlights of the report follow:

¨      The survey area…”for the most part has some combination of above average income and a high level of disposable income; making them attractive potential customers to retailers…”

¨      The market area can expect to generate a demand for nearly 400,000 square feet of new retail space to 2006.

¨      A substantial portion of the largest expenditures are captured by the Phoenix metro area.  This represents and excellent opportunity for locally based retail to intercept these expenditures.

The report clearly shows a tremendous opportunity for retailers to take advantage of a growing, but undeveloped, market.

Resolution 2000-443

EXHIBIT A

TOWN OF CAMP VERDE ECONOMIC DEVELOPMENT PLAN

It is the purpose of the Economic Development Plan to encourage economic activity which is compatible with the Community Values and enhances the quality of life of the citizens of the Community.

I. COMMUNITY VALUES

A. Community: Protect and enhance the Community's small town, rural, agricultural, western character. (1)

B. Environment: Protect environment and enhance quality of life. (2)

C. Economy: Develop an economy which demonstrates the following qualities:

¨       -Appropriately scaled development which pays for itself and is within the framework of the General Plan. (3 )

¨       -Wages which provide for secure, attractive and sustainable housing and standard of living while avoiding dependence on single large employers. (4)

D. Housing: Housing should maintain the following characteristics:

¨       -Encourage a variety of decent, safe, sanitary and affordable housing. (5)

¨       -Encourage construction which is consistent with the character of the existing community. (6)

These values are consistent with, and mutually supportive of, each other. All economic development efforts will be designed to strengthen and enhance the interrelationship of these values.

Endnotes:

1. Town of Camp Verde General Plan 9-23-98 pages 2,3,17,25;  Camp Verde Focused Future 11-27-95 page 9; Regional Planning & Growth Management-Verde Valley Forum 99,6-99 page 4
2. T own of Camp Verde General Plan pages 2, 9; Camp Verde Focused Future, page 9; Regional Planning and Growth Management, page 4
3. Town of Camp Verde General Plan pages 3,23, 36,37,38
4. Town of Camp Verde General Plan pages 37.38
5. Town of Camp Verde General Plan page 29
6. Town of Camp Verde General Plan page 3; Town of Camp Verde Housing Strategy, 2-99 page 2

II. DEMOGRAPHICS

This Plan is based on the following demographic information. As the demographics of the Community change it is expected this Plan will change to meet the new demands of the Community. Arizona Department of Economic Security 1999 estimates are used unless other wise indicated.

A Camp Verde Population: 8690 or 5.6% of county.

B. Total civilian labor force: 3808

C. Unemployment rate: 3.4% or 130 persons. Does not show underemployed.

D. Median FAMILY income $32,032 or $15.40 per hour. 88% of county median.

E. 19% of jobs pay average of $5.89 to $8.22 per hour.

    21% of jobs pay average of $9.82 to $12.05 per hour

F. 66% of students qualify for reduced/free meal program. Family of 4== $30,900

G. Approximately 2012 people, or 23%, are under the age of 20. (2-97)

H. Approximately 1682 people, or 19%, are over the age of 70. (2-97)

The following information is per the Town of Camp Verde Housing Strategy, May 1999 using 1998 information unless otherwise shown.

I. Household Size: 3255 households, 66% l or 2 persons, 54% over age 55, average of 2.67 per household-

J. Housing Types: 49.9% site built, 48.7% manufactured, 1.9% apartments.

K. Minimum Housing Costs: New Site Built: $110,000, minimum family income to qualify for loan: $18.52/hr; Manufactured / land: $58,450, minimum family income to qualify for loan: $9.83/hr; Rental: 2 bedroom, minimum family income $10.10/hr,

3 bedroom minimum family income $12.50/br; 1000/0 of units rented. (per Ipser&Assoc Rental Market Analysis May 96)

lll. COMMUNITY INFRASTRUCTURE

A. Land Availability: (per General Plan 1998)

B. Average Price: Industrial $60,000/ac, Commercial $60,000/ac, Residential $25,000/ac

C. Transportation: Public Airport: none; Rail Service: none; Motor Vehicle; excellent 1-17/260; Surface Carriers; several.            Excellent access to metro Phoenix/Flagstaff axis.

D. Education: K-12; Community College: extension service; Voc/Tech: none. University: extension service.

E. Public Health/Safety: Police and Fire protection, clinic medical services, no hospital.

F. Library: Town operated.

G. Utilities:

1. Electric: APS Copper Canyon Substation at capacity. New Rim Rock: substation will release capacity at Copper Canyon in 2001. 3 phase power at 279, could be available to 260 corridor .
2. Natural Gas: Propane readily available. Citizens Utility Natural Gas, Ion 550 psi line

to 1-17/260 end of2000. Across freeway to town 2001.

3. Water: Privately owned. 860,000 g/day capacity. 2.7 mg storage. Limited service area. Good to 260 corridor.
4. Sewer: 280,000 g/day expanding to 1.3 mg/day within 1 year. Limited service area. Will have good coverage 260 corridor south of freeway. Approximately 140,000 g/d used.
5. Telephone: US West: Limited availability of new service. Require 6 month lead time for major upgrade for contracted user. Current loca1 area capacity problems.
6. Internet: Various providers. Good coverage limited by telephone speeds. High speed microwave to server under development.
7. Cable/Satellite: Good service available depending on location.

H. Town Revenues: General Sales Tax: Yes, Bed Tax: Yes, Restaurant Tax: No, Drink Tax: No, Property Tax: No. Development fees: No.

1.       Sales Tax: for each million dollars in taxable sales the Town receives $20,000. Ifone uses the amount of money collected per 1% of sales tax as an indication of economic activity Camp Verde ranks as follows:

These numbers are affected by outlying population and geographic location to some degree.  However, they also show a general under performance of the Town’s sales tax based economic performance.  A 10% increase in total taxable sales in the Community will generate approximately $230,000 per year of additional sales tax.

2.       Property Tax: Camp Verde has no property tax. The Towns identified above with an * have property taxes ranging from $0.71 per $100 assessed to $1.31 per $100 assessed value. If the T own implemented a similar tax structure the Town would raise, based on a total assessed value of $40,375,218 approximately $286,000 to $528,000 per year. Since commercial properties have a higher full cash value and are assessed at a higher rate (25%) compared to residential (10%), property taxes have a disproportionate impact on commercial properties. This may tend to discourage commercial investment in high property tax areas.

I. Natural Resource Issues: cumulative impacts on natural resources will continue with the increase in population and commercial activity inherent in a high growth area. In addition, to generalized impacts the status of the Community's water resources will continue to be an issue. The following is a summary of water conditions taken from the Arizona Department of Water Resources, Verde River Watershed Study, April 2000 and the Verde Cooperative River Basin Study September 1996 using 1983 study data.

Groundwater:    Recharge rate: 169,000 af/yr

                        Base flow: (80,000 af/yr)                      

                        Evaporans: ( 35,000 af/yr)

                        Irrigation: ( 31,000 af/yr)

                        Pumpage: ( 8,000 af/yr) based on 1980 population 3,824

Estimated additional available groundwater: 15,000 af/yr

Total water consumption estimated to increase by 2/3 by 2040

IV .COMMUNITY AMENITIES

A Natural: Verde River, mountain areas, large Forest Service areas.

B. Cultural: Yavapai-Apache Nation, Fort Verde, Montezuma Castle, Montezuma Well, Old Town.

C. Entertainment: Casino, recreation programs, social activities.

D. Parks: 7 ac Butler park, 25 m pool (seasonal), 2 ac multi-purpose area.

E. Shopping: Old Town, general retail/service.

V. PLAN ANALYSIS

Based on the information contained in this Plan a number of general observations can be made:

1. With 42% of the population under age 20 or over age 70 available workforce will be a critical issue.
2. Family incomes need to be a minimum of $lO to $20 per hour to be able to afford decent housing.
3. There appears to be a good supply of single-family residential lands. Taking into account recent planned area developments and the availability of Mixed Use areas identified in the General Plan there appears to be adequate potential supply of multi-family and commercia1/industrial.
4. Water and sewer capacity is extremely limited and therefore extremely valuable to the community.  Management of these resources must be consistent with the Plan purposes, goals and objectives.
5. Transportation networks appear excellent while telecommunications are suffering current capacity problems.
6. Groundwater supplies will become increasingly more problematic for residential and high demand commercial/industrial uses.
7. Without a property tax, additional residential uses should be minimized while high sales tax generating activities promoted.
8. Town attractions/amenities seem geared to providing minimum essential community services or servicing freeway traffic.
9. There may be an essential contradiction between high retail generating activities and high wage paying activities. A balance between the two may be necessary.

VI .PLAN IMPLEMENTATION AND PARTNERS

Successful implementation of the Plan requires the commitment of a broad cross section of the Community. The Plan will be implemented by the Community Development Director with the assistance of Community partners.

1. The Community Development Director will have responsibility for implementing this Plan. Budgetary resources for Plan implementation will be through the Community Development Department. The Community Development Director will be responsible for coordinating Plan implementation with the appropriate economic development groups and agencies. The Community Development Director, or the Director's designee, will be the official contact point for the Town's economic development effort. Policy direction for Plan implementation will come from the Town Council.
2. The Community Development Director will work to establish an Economic Development Advisory Council (EDAC) which will serve to assist, support and provide advice on the Plan implementation to the Community Development Director.   The EDAC will be open to all interested persons wishing to participate in the economic development of the Community. The EDAC will not be considered a Town Committee and as such will not be appointed by the Town Council.  The EDAC will constitute itself with a Board of Directors under such terms as deemed most beneficial by the EDAC.
3. The Community Development Director will work with the Chamber of Commerce to develop joint programs for Plan implementation. Such programs will be designed to obtain the goals and purposes of the Plan by the most efficient and effective means and to avoid unnecessary duplication of services.
4. The Community Development Director will maintain partnerships with the appropriate individuals; groups and agencies to best implement the goals and purposes of the Plan. Such partners will include, but not be limited to, the following:

¨       Yavapai-Apache Nation

¨       Chamber of Commerce

¨       Arizona Department of Commerce

¨       Northern Arizona Council of Governments

¨       Yavapai County Regional Development Agencies

¨       Development Agencies of the United States -Local and Regional Utility Companies

¨       Local associations of business and/or neighborhood groups.

¨       Individuals, who by training, experience or interest are best suited to assist in Plan implementation.

5. Policy Review will be ongoing as a responsibility of the Town Council. The Community Development Director will provide the Council with, at a minimum, monthly management reports providing appropriate policy related information. Additionally, the Director will provide such specific information as may be required for the Council to effectively monitor the program implementation and develop necessary policies.

VII. PLAN GOALS AND OBJECTIVES

It is understood that the Plan is a flexible attempt to focus the Town's economic development efforts to encourage specific outcomes. As a result, the Plan is expected to be periodically modified to reflect implementation outcomes, the General Plan and changing Community and economic conditions. The Plan is not intended to limit or interfere with free market forces. The Plan is intended to provide a focus for the Town's limited economic development resources and to encourage economic activity which is consistent with the Community Values identified in the Plan.

A Goal I: Focus efforts on retention and expansion of existing businesses in the Community to increase economic activity. This effort should result in additional employment and increased sales tax revenues without the same growth related impacts as new development.

Objective: Increase taxable sales by 20%, adjusted for inflation, within 3 years.

B. Goal 2: Attract economic activity not currently readily available in the Community which will generate high taxable sales with limited workforce demands.

Objective: Attract 3 to 5 businesses meeting Objective within 3 years.

C. Goal 3: Attract economic activity which generally pays a minimum of $10 per hour with limited workforce demands.

Objective: Attract 3 businesses meeting Objective within 3 years.

D. General Conditions: All objectives should be subject to the following general conditions:

¨       Make maximum use of existing workforce by encouraging opportunities for current residents to improve their economic condition.

¨       Avoid activities which have a significant negative impact on the environment, particularly concerning water resources.

¨       Encourage activities which by type, land use, location and long-range impact are consistent with the Community Values identified in this Plan.

¨       Encourage activities in areas which can be reasonably served by Community infrastructure.

VIII. PLAN AMENDMENT

This Plan may be amended by any time upon a majority vote of the T own Council.

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