Issuu

SOARING TO

NEW HEIGHTS 2019

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By ALYSSA TUFTS

viation has always pushed boundaries and been at the forefront of innovation and progress. But a long-term development at Phoenix-Mesa Gateway Airport is expected to take innovation to a new level and revolutionize the way products are transported from the U.S. to Mexico. In turn, experts say the development will create thousands of jobs, provide economic opportunities for companies, and offer students another way to gain invaluable knowledge and experience. SkyBridge Arizona is a 360-acre, long-term development at Phoenix-Mesa Gateway Airport that will allow U.S. Customs and Border Protection and Mexican Customs officers to work side by side to jointly inspect and process shipments in preparation for international transit. “SkyBridge is a great asset to add to what we have at Phoenix-Mesa Gateway Airport,” says Ryan Smith, director, communications and government relations, Phoenix-Mesa Gateway Airport Authority. “We view Phoenix-Mesa Gateway Airport not as much as an airport, but as a large redevelopment project that just happens to have an airport. So when you look at a project like SkyBridge, with lots of acreage and direct access to three 10,000-foot runways, the possibilities are limitless as to what you can produce there and what can locate at SkyBridge.” 74

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According to Gov. Doug Ducey’s office, SkyBridge is a $230 million commercial development that will have 2 million square feet of warehouse space, 1 million square feet of office space, 800,000 square feet of air cargo operations, 900,000 square feet of light industrial and flex space, and 100,000 square feet of retail and restaurants. It is also expected to increase cargo flights out of Phoenix-Mesa Gateway to 2,000 per year, a number that will skyrocket to 10,000 by 2036. AIR APPARENT Growth of air freight between Arizona and Mexico grew 180 percent from 2011 to 2015, outpacing all other modes of transport, according to Ducey’s office. Air freight trade between Arizona and Mexico currently totals $390 million per year and is expected to expand to $650 million by 2025. Kevin Cosca, senior vice president, CBRE, says the former Williams Air Force base was antiquated when East Valley municipalities took it over a long time ago. Since then there has been a considerable amount of work done to bring the airport up to standards for “passenger routing, hangar-type businesses, aircraft manufacturers, and aerospace and defense companies. With three runways, the airport’s capacity is unmatched.”

Able Aerospace

That growth since the airport was established as Williams Gateway Airport in 1994, and then renamed Phoenix-Mesa Gateway Airport in 2008, has led to five commercial airlines flying to more than 45 destinations, hosting more than 40 companies on site, and the airport area is developing as an international aerospace center with aircraft maintenance, modification, testing, and pilot training. “It’s almost like Phoenix-Mesa Gateway Airport has become an overnight success that took 10 years,” says Denny Barney, president and CEO of East Valley Partnership. “The City of Mesa installed the Ray Road Loop and put all the infrastructure in and then had to wait for the alignment of the stars. Then, you saw one building, then two buildings and then eight buildings. It’s almost like they put water in the ground and they started popping up. And it’s going to continue to grow.” LAWS OF ATTRACTION CBRE Senior Vice President Jackie Orcutt says the activity and success of the five commercial carriers out of Phoenix-Mesa Gateway and Arizona State University’s Polytechnic Campus within the airport’s boundaries, in addition to several flight schools and well-established manufacturing businesses, is likely

what spurred initial interest in SkyBridge more than two years ago. “Phoenix-Mesa Gateway recognized that they had a 360acre land parcel just southwest of the runway. There are very few tertiary commercial airports across the country that have this much land available for development,” Orcutt says. “With SkyBridge’s proposal to bring a unique international cargo expediting process to Phoenix-Mesa Gateway Airport, they were ultimately able to negotiate a land lease that would enable them to bring this project to life.” SkyBridge will be jointly operated between U.S. and Mexico customs officers, Orcutt says. “SkyBridge’s unique process enables products shipped via air cargo between the U.S. and Mexico to undergo all necessary customs processes on- site at Phoenix-Mesa Gateway Airport through a program called Unified Cargo Processing (UCP),” Orcutt says. With Mexican customs officials on site at Phoenix-Mesa Gateway Airport, the customs approval process can happen before the plane departs from the U.S. to Mexico, Orcutt says, allowing cargo to be delivered to its destination the very same day. “In the past, there’s been a bottleneck for delivery of product to Mexico via air cargo and it could take up to 14 days for cargo product to make it through customs once it had landed in AB | March - April 2019 75

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Denny Barney

Kevin Cosca

Doug Ducey

Gabriel Massey

Mexico,” Orcutt says. “This process allows it to happen essentially the same day.” GAME-CHANGER According to the International Air Transport Association (IATA), air cargo transports $6 trillion in value of goods, more than 60 million people have jobs supported by the aviation industry, and air cargo represents 35 percent of global trade by value, but less than 1 percent of trade by volume. In 24 hours in the air cargo industry, IATA statistics show that 100,000 planes take off, 20 million parcels are sent, 140,000 tons of cargo are carried, $18.6 billion value in cargo is shipped, and 657 million packages worth $17.8 billion are sent. “SkyBridge is going to the first-of-its-kind inland port, where people can brings goods and products on a plane and clear

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Jackie Orcutt

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customs here and get to metropolitan areas in Mexico, which is our largest trading partner,” Barney says. Just how big could SkyBridge be? Barney thinks he has an answer. “When you think about SkyBridge, consider this: How big of a game-changer was Amazon?” Barney asks. “The first year I used Amazon, I had one order, then three and then 12. The whole face of shopping and receiving goods was changed by Amazon. Similarly, we think SkyBridge is going to be a dramatic gamechanger. From an inland port standpoint, it’s going to open up other opportunities that people haven’t considered yet.” Experts agree with Barney’s lofty assessment. “The impact that SkyBridge will have for international transit of air cargo products will be tremendous,” Orcutt says. “Feedback from logistics providers and large global users who currently

MESA ELLIOT TECH PARK: Mesa Elliot Technology Park is a Class A master-planned mixed-use business park. Located just east of the Loop 202 on Elliot Road, this 270-acre project will consist of more than 2.7 million square feet. QUEEN CREEK: Queen Creek’s downtown and economic core offers shopping, dining, education and entertainment. It currently has more than 115,000 square feet of new retail space proposed. RIVULON: Rivulon is a premier 250-acre mixed-use development with freeway frontage. When fully complete, the business district will include approximately 3 million square feet of Class A office and about 250,000 square feet of retail and hotels. SKYBRIDGE: SkyBridge Arizona is a 360-plus acre development strategically located adjacent to Phoenix-Mesa Gateway Airport taxiways. The land is “shovel ready” and ideal for aerospace manufacturing; research and development; maintenance, repair and operations facilities; and other industrial uses. UPTOWN CHANDLER: Chandler offers businesses a central PHX East Valley location, affordable commercial real estate options, and tremendous access to customers and talented workers.

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SkyBridge layout

“It’s almost like Phoenix-Mesa Gateway Airport has become an overnight success that took 10 years.” —Denny Barney

ship products via air cargo to Mexico has been very positive. Phoenix-Mesa Gateway and SkyBridge have had several test runs employing the unified cargo process and all have been very successful. This process is a game-changer and it will revolutionize the way third-party logistics companies distribute product from the U.S. to Mexico.” MORE JOBS LANDING The leaders of SkyBridge estimate 10,000-12,000 new jobs will be created within the next decade on site, based on the mixed use of the 3.5 million square feet slated for development, and that’s just within Phoenix-Mesa Gateway Airport. “SkyBridge has already been approved to develop on two parcels of land and the remaining 355 acres will likely receive FAA approval by summer 2019,” Orcutt says. “At that time, the master plan can move forward. That plan includes 3.5 million square feet of state-of-the-art facilities geared towards attracting various industries to the area.” Potential tenants at SkyBridge will range from flight schools, which train commercial, private and government-related pilots; to original equipment manufacturers. “Additionally, SkyBridge has a collaboration with Arizona State University Polytechnic campus, which offers several programs focused on aerospace, technology and defense-related technology,” Orcutt says. That collaboration will be a way for the airport and ASU to not only educate students, but provide opportunities for learning, growth and the potential for full-time employment. “One of the biggest assets for Phoenix-Mesa Gateway Airport itself is the proximity to three great educational institutions — Arizona State University, Chandler-Gilbert Community College and the East Valley Institute of Technology (EVIT),” Smith says. “ASU and Chandler-Gilbert have done a great job of molding their curriculum and what they offer to prospective students that are 78

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looking to get into the aviation industry — whether that’s future pilots, air traffic controllers or aircraft mechanics.” ADDED VALUE In addition to the educational component, SkyBridge has the potential to add great value to Phoenix-Mesa Gateway

PHOENIX-MESA GATEWAY AIRPORT • Home to more than 50 companies. • Record-setting passenger activity as 1,531,648 passengers traveled through the airport in 2018. • Three runways measuring 10,400, 10,200, and 9,300 feet can accommodate the largest aircraft in the world. • Serves more than 47 cities with non-stop service via Allegiant, California Pacific Airlines, Flair Air, Swoop and WestJet. • Unified cargo processing with U.S. and Mexican Customs for direct export into Mexico. • Contributes $1.3 billion annually to the Arizona economy. • An international aerospace center with aircraft maintenance, modification, testing, and pilot training. • Designated as Foreign Trade Zone #221, as well as a Military Reuse Zone, offering aviation companies a significant financial edge in the global marketplace.

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Airport through trade, e-commerce and economic development opportunities that will be presented through on-site companies and potential tenants. “If you’ve driven past the airport recently, you see there is tremendous growth happening, especially at the north end,” Barney says. “A lot of that is larger warehouse and manufacturing facilities, which take up a lot of square footage, but don’t necessarily translate into a high number of jobs. SkyBridge is transforming that into a higher-tech, higher-demand, highervalue proposition that we think elevates the entire jobs market around the airport and makes it into a true center of excellence.” Companies currently on site at Phoenix-Mesa Gateway include aircraft maintenance, repair and overhaul, aircraft operations, airlines, aviation shops, supplies and distribution, building development, consumer and construction services, education and flight training, government, manufacturing, rental cars, food and beverage and retail. “Our central location, as it relates to the Southwest U.S., and proximity to Latin America and Mexico, makes us a unique setup and once you involve and include the unified cargo processing program and lots of land, it’s really a setup unlike any other in the entire country,” Smith says. “And it’s something that SkyBridge has committed to seeing be successful as we continue to grow our commercial passenger service. As the growth in the Southeast Valley continues, I think we will see opportunities on the business side where people locate their business and take advantage of all that Gateway has to offer.” SUCCESS STORY One of those businesses is Able Aerospace. Able relocated to its headquarters at Phoenix-Mesa Gateway Airport in 2013. Since that time, it has added more than 200 employees and expanded its footprint, adding new mezzanine space, a new paint facility and the build-out of hangar space that is now home to the Able Maintenance Center. “Able’s original campus is the result of a successful publicprivate partnership between our company, the City of Mesa and the Phoenix-Mesa Gateway Airport Authority,” says Gabriel Massey, general manager of Able Aerospace Services. “The airport and city have a clear vision for the East Valley’s aviation-related economy and that – combined with a very strong local workforce – continues to fuel our effort to operate as a world-class, customer-first component repair and overhaul provider.” In December 2018, Able broke ground on an additional 50,000-square-foot building expansion, which Massey says Able will use to enhance the technology employed in their repair and overhaul process, in addition to new product and service offerings. Massey says that expansion is expected to generate as many as 100 new, local, skilled aerospace jobs over the next two years. “Our strong and positive relationship with the airport and the city has helped us to grow in size, capabilities and revenue,” he says. “In turn, we have added hundreds of new jobs to the local market. When it came time to pick a location for our latest 80

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expansion, the Airport Authority and City of Mesa made our decision to stay and expand at our current site a very easy one.” That expansion includes additions to their original 191,000-square-foot building. “Those expansions have allowed us to continue to grow in areas of high industry demand, including new equipment and repairs that allow us to support the latest aircraft models and a maintenance center that provides expert aircraft completion services, including state-of-the-art avionics upgrades,” he says. Massey says Able supports almost 1,500 civilian and military customers in 60 countries worldwide with more than 10,000 FAA-approved component repair, overhaul, parts and aircraft completion services. “Our latest expansion, which is slated to be complete this summer, will allow us to continue to grow and respond to market needs,” Massey says. “It is a strategically paced evolution that keeps us at the forefront of technology and capabilities so that we can keep our customers across the world safely flying.” Not only is SkyBridge going to impact companies on site at the airport like Able, but Orcutt says, “SkyBridge is quickly becoming a target for users in various industries, including manufacturing, e-commerce, air cargo and logistics, corporate hanger users, freight forwarding, defense contractors, electronic manufacturers and distributors, airline manufacturing, MROs and generalpurpose warehousing. “SkyBridge is not only going to revolutionize the aircraft industry,” she says, “it has the potential to revolutionize the distribution and e-commerce industries.”

IMPROVED CUSTOMS PROCESS THROUGH SKYBRIDGE ARIZONA • Freight arrives to Phoenix-Mesa Gateway Airport from multi-national companies for customs clearance and processing prior to transit to Mexico. • Mexican and U.S. customs officers jointly inspect shipments with required permits and approvals. • Packages ship directly to final destinations in Mexico and beyond. • Customs electronically tracks shipments to final destinations and customers receive electronic notifications of deliveries and contents. • Customers on both sides of the border are satisfied with faster, more secure deliveries.

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HOME-GROWN PRIDE PHX East Valley becomes a hotbed for innovation, while remaining a great place to live and raise a family

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By MICHAEL GOSSIE

enny Barney, a sixth-generation Arizonan, was born to lead the East Valley Partnership. “It’s very personal to me,” says Barney, who took over as president and CEO of East Valley Partnership on June 1. “I was born and raised here. I’ve lived on the East Coast, the West Coast, overseas, but I’m back here because this is where I want to raise my family. Ultimately, I want to make sure that when my kids are entering the workforce, there are the right kinds of jobs waiting for them if they choose to stay here. It’s important to attract those 21st Century jobs so our economy can continue to grow.” The East Valley Partnership was formed 35 years ago as a cooperative effort among the communities of the PHX East

CLIMBING THE RANKINGS • Business Insider ranked the Greater Phoenix region the 10th Most High-Tech City in the U.S. • WalletHub ranks Arizona as the 17th Most Innovative State in the U.S. • Area Development recognized Arizona as a top state for economic competitiveness • Forbes ranked the Greater Phoenix region 16th for best cities for young professionals • Chief Executive Magazine ranked Arizona as the 9th Best State to do Business

Valley region. Since then, the region has experienced exponential population growth and added thousands of new jobs. Today, the PHX East Valley boasts a combined population of 1.3 million in the cities and towns of Apache Junction, Chandler, Fountain Hills, Gilbert, Mesa, Queen Creek, Tempe and Gila River Indian and Salt River Pima-Maricopa Indian Communities. Because of its talented and highly educated workforce and favorable quality of life, the area also continues to be a magnet for new businesses and entrepreneurial ventures, particularly in industries such as aerospace and aviation, technology, financial services and healthcare. AB | March - April 2019 83

EAST VALLEY PARTNERSHIP “The Partnership has played an indelible role in the growth and development of the PHX East Valley,” says Barney, who represents District 1 on the Maricopa County Board of Supervisors and is also principal of Arcus Private Capital Solutions, a specialized realty investment and finance company. “I love the organization’s specific focus on quality of life, economic development and the issues that are so important to me.” Az Business talked with Barney to get his take on where the PHX East Valley is today and where he sees it going tomorrow. Az Business: How do you view the business climate today in the PHX East Valley? Denny Barney: They called the 1920s the “Roaring ‘20s.” It seems now we are heading into the “Roaring 2020s.” There’s such an emergence of all these great things as our economy has transformed. We used to be very consumption based, but there’s been a migration away from those types of jobs. You’re seeing a movement toward the types of jobs that are more sustainable across the economic cycles and the PHX East Valley has been at the epicenter for much of that growth as it relates to advanced

manufacturing, FinTech, emerging technologies, bioscience and things we think will create a more sustainable economy. From an infrastructure standpoint, a workforce standpoint, housing availability, space and transportation, the PHX East Valley was positioned with all those things in place and was ready to invite those types of companies in. AB: Why has the PHX East Valley become such a hotbed for innovation? DB: We talk about technology in the East Valley like it’s a new thing, but Intel moved here 40 years ago and has invested $30 billion in its campus here. Motorola was deeply entrenched in our market. Boeing has quietly been in Mesa for decades with 3,000 employees creating some of the finest technology used by armed forces around the world. For those of us who have been here for a long time, we’ve been wondering when the light was going to go on and there would be recognition of the innovation that has been happening in the PHX East Valley. It was going to happen and now it’s like a self-fulfilling prophecy. So when you look at the demography of the East Valley and the skilled workforce, you see that things are finally hitting on all cylinders. AB: Did having companies in place like Intel and Boeing help attract those other companies that have sparked the technology explosion in the East Valley? DB: It articulates the value proposition. If you’re on the board of directors of a company that is looking to move, you have to look at the value created by making that move. To have significant companies in place helps tell the story in a way that makes it easier for others to consider making that decision to move to the PHX East Valley. AB: What’s the appeal of the East Valley? DB: Originally, companies came here because of affordable land, affordable housing for their employees, good schools, good transportation infrastructure and an available workforce. But it’s more than that. We have a stable regulatory environment that you won’t find with our neighbor to the west. We all love California, but we don’t want to run our businesses there and a lot of people are figuring that out. And for all the rhetoric you hear, we have a stable tax environment that allows people to come in and scale a business. AB: In what sectors has the PHX East Valley become a gamechanger in technology? DB: We did a forum on disruptive industries and Gilbert-based Offerpad was one of the panelists. They talked about how they are reshaping the way people transact their single-biggest financial asset — their home. Those types of disruptions are going to continue and we see it in how we — as a culture — interface with our financial institutions. It’s dramatically different today from what it was just 36 months ago. If you don’t have a good app on

UNITED FRONT: “We are a regional advocacy group that brings people together,” says Denny Barney, president and CEO of East Valley Partnership. “It’s amazing what can happen when you get a bunch of smart people who believe in the region together in one room.” (Photo by Mike Mertes, AZ Big Media)

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EAST VALLEY PARTNERSHIP your phone to do your banking, you switch banks. So if you look at FinTech — and that’s a big buzzword in the jobs arena — the PHX East Valley has become a hotbed for FinTech. If you look at autonomous vehicles, we have become Ground Zero for autonomous vehicle testing. From all that innovation, you get secondary and tertiary jobs where people are feeding into these growing industries. Every industry in which you are seeing mass disruption is represented in the PHX East Valley. We cannot even comprehend the breadth and depth of the impact today, but when we look back in four or five years, we will say, “Wow, look what happened.” AB: How much does the fact that Arizona State University calls the PHX East Valley home play into the region’s ability to innovate? DB: You cannot have the right kind of workforce without the right types of educational platforms. ASU has gone from being the No. 1 party school two decades ago to today being the No. 1 most-innovative university for several years in a row. But it’s not just having a great university like ASU. We have great community colleges, great K-12 districts that all wrap up into preparing the workforce needed to meet the needs of the new-economy type jobs. We want those new-generation jobs that will allow us to be more insulated to the historical ups and downs — the boom-bust — of the economy. The truth is, the trajectory has shifted and ASU and other education institutions have helped us stay ahead of that trajectory.

AB: What trend should should we be watching in the next year? DB: It’s all about jobs and creating the right kinds of jobs that will move our economy forward in a sustainable way. If you look at jobs reports from the past, about 25 percent of new jobs created were companies that were new to the market and the other 75 percent came from companies that were already here. For the first half of 2018, it was almost opposite. Almost 80 percent of the new jobs created came from companies that were new to the market. That’s going to change the complexity of the region as we bring in new people and new opportunities. Our push is to continue to get our share of those new jobs, get people to grow their businesses here if they’re already here, move their businesses here if they’re not, move their families here or start their families here, and capitalize on the positive energy that defines the PHX East Valley.

AB: How is East Valley Partnership helping the region prepare for its next stage of development? DB: We are not the Chamber of Commerce. We are not GPEC. We are kind of positioned in between, where we are beating the drum day in and day out telling people why this is a great place to do business and what you are missing out on. That story needs to be told. Maricopa County is competing against a lot of great communities, but we have a unique value proposition that people need to hear about. In order to have quality of life, you need a few AB: What are some of the other components — we are blessed with beautiful disruptors or game-changers you see blue skies and sunshine, but you also need to coming from the PHX East Valley? have good transportation infrastructure, good DB: Remember what the north healthcare delivery, and you have to have solid side of ASU looked like before Tempe education systems to educate everyone from Corporate income tax: 4.9% Town Lake? It was a dry riverbed. P-12 through higher education. We have all Then, you had some leaders who said, those things. The goal of the partnership is Individualincome tax: 4.5% “We can do better.” Now that area to make sure we are positioning the region State sales tax: 5.6% that was once a “no man’s land” is a in a way that when people are looking for vibrant jobs center. You have other opportunities — across all economic cycles — Background: Arizona’s personal little pockets like that in the PHX they don’t forget to consider us. income tax system consists of East Valley that are changing the five brackets and a top rate of game. In Tempe, you have the new AB: How do you see the PHX East Valley 10 4.54%. That rate ranks 19th I.D.E.A. Tempe, which is focused years from now? lowest among states levying an on bringing new biotechnology DB: Historically, the PHX East Valley has individual income tax. Arizona’s and technology companies to been very suburban. We are going to see more state income tax collections per Tempe. Mesa is working on its own evolution toward urban cores that are part person were $515 in 2016 which innovation district that is focused of the suburban model. There is a certain ranked 10th lowest nationally. on catapulting some of these highsegment of the population that wants to be Arizona does not collect local tech industries that are landing close to where they work, so we are going to income tax; municipal sales tax here and putting them into space see an evolution that will change some of our rates vary by municipality. to build around its emerging ASU communities’ dynamics like we’ve seen in campus. You have Gilbert working Tempe. Queen Creek and Apache Junction with Deloitte — one of the biggest are going to continue to fill in and grow. companies in the world — to create Each of our communities are investing in one of their global centers of excellence. And the only challenge infrastructure in unique and different ways that will elevate their we are facing along the Loop 101 — the Tech Corridor — is that missions. I don’t think we are going to be flying around in cars we are running out of space. So it’s pushing development further like “The Jetsons,” but I think we’ll be riding around in cars that south and out toward Phoenix-Mesa Gateway Airport. So what don’t have drivers. We have seas and seas of parking lots that may we see now as separated pockets will eventually blend together become less important. So what is currently critical infrastructure because of availability of real estate resources. could become adaptive re-use space 10 years from now.

COMPETITIVE TAX RATES

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EAST VALLEY PARTNERSHIP INITIATIVES PHX EAST VALLEY PHX East Valley is a national initiative led by the East Valley Partnership to advance business and quality of life in the region. Communities in the region are leaders in Arizona economic development and drive business expansion, high-tech job growth, higher wages and innovation. The PHX East Valley region is comprised of cities such as Tempe, Mesa, Chandler, Apache Junction, Gilbert and the Town of Queen Creek. Experience first-hand the elements that have allowed the region to pioneer the future. The East Valley’s growth in advanced industries has aided strategic urban development that has transformed these communities into bustling metropolitan hotspots that are attractive to a young, diverse workforce including families and empty-nesters that desire a work and play destination. EDUCATION THINK TANK One of the most important — and successful — drivers of the region’s strong economy is the interconnectedness of its vigorous and vital business community with its exceptional P-20 educational system. Historically, an important driver in advocating for education issues and topics has been the East Valley Think Tank (EVTT). As of 2016, EVTT transitioned back under the East Valley Partnership umbrella, where it had its origins in the late 1990s. Education has always been a foundational issue for the work of the East Valley Partnership, and its commitment to education advocacy will now be served by a tiered committee structure to involve both the region’s education practitioners and leadership, as well as business leaders who are interested in education topics and have a passion for continuing and expanding educational excellence in the region and state. PHX EAST VALLEY ANGEL INVESTOR PHX East Valley Angel Investor Initiative is a regional partnership to catalyze economic growth by raising awareness of the importance of angel investing and enhancing access to early-stage funding for PHX East Valley tech startups. An angel is an individual who invests his or her own money in startup companies in exchange for an equity share of the businesses. An individual angel may invest as little as $5,000 in a business, while an angel group may pool members’ capital to make a much larger investment. In addition to capital, angels often invest time in entrepreneurs to help them grow their businesses. Return on investment is made when the entrepreneur successfully grows the business and exits it, generally through a sale or merger. 88

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Northrop Grumman’s CRS-9 #Cygnus departing from the International Space Station

DEVELOPING A POWERFUL LOCAL ECONOMY

PHX East Valley’s 1.3 million residents have a lower than average median age (34.98) compared with the national average and higher educational attainment, providing an outstanding workforce for knowledge-based industries. The PHX East Valley is also home to global innovative brands such as Intel, Northrop Grumman Innovation Systems (formerly OrbitalATK), Amkor, Keap (formerly InfusionSoft), The Boeing Company, General Dynamics, GoDaddy, PayPal, Honeywell, GM Innovation Center and Microchip, making it a magnet for cutting-edge technology companies. SUPERSTITION VISTAS The Superstition Vistas Area Project covers 275 square miles of undeveloped Arizona State Trust Land on the eastern edge of Phoenix. The East Valley Partnership has engaged in a visioning process to make sure that this land sets an example for sustainability and economic prosperity for the region. Superstition Vistas has the potential to become a thriving and sustainable desert community that combines the best of urban and rural living while conserving vast open spaces — a model for the 21st century. However, its future, and Arizona’s inheritance, depends on the region’s ability to implement a long-range plan that can guide decision-making for several decades. Over the past few years, local communities, organizations and consultants have crafted six possible outcomes for the Superstition Vistas area which ranged from continuing current development patterns to higher density development patterns with access to open space. AB | March - April 2019 89

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ABOUT THE EAST VALLEY PARTNERSHIP WHAT IT IS: East Valley Partnership has long been recognized as being proactive and responsive to the needs of its members. Whether you are a business, healthcare or educational institution, or local municipality, you have a role to play to ensure the vitality and prosperity of the region. Your participation is vital in assisting the East Valley Partnership with continuing efforts to move the East Valley region forward. Issues surrounding education, transportation and infrastructure, economic development, and other important areas comprise a large part of where the East Valley Partnership devotes time and resources. GET INVOLVED: evp-az.org or 480-834-8335

PHX EAST VALLEY CULTURE CLUB The local arts industry supports nearly 12,000 jobs and contributes more than $400 million to the economy in the Phoenix region with more than half, $235 million, coming from event-related spending. PHX East Valley venues such as the Mesa Arts Center, Chandler Center for the Arts and many more are providing entertainment and assets to the community. The PHX East Valley is home to: • Apache Junction Performing Arts Center (Apache Junction) • Art Intersection (Gilbert) • ASU Gammage (Tempe) • Chandler Center for the Arts (Chandler) • Chandler Symphony Orchestra (Chandler) • East Valley Children’s Theater • I.D.E.A Museum (Mesa) • Mesa Amphitheatre (Mesa) • Mesa Arts Center (Mesa) • Mesa Convention Center (Mesa) • Queen Creek Performing Arts Center (Queen Creek) • Silver Star Theater (Mesa) • Superstition Mountain Museum (Apache Junction) • Tempe Center for the Arts (Tempe) • The Vision Gallery (Chandler)

ASU Gammage (Tempe) 90

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Region on

THE RISE

From startups to technology giants, innovation thrives in the East Valley

rizona’s rising technology sector continues to be nationally recognized for its rapid growth and emergence as an innovation hub. More and more established technology companies are locating in the Valley like never before as others seem to launch here every week. One of the most significant contributors to this growth is the success occurring in the East Valley of Phoenix’s metropolitan area.

Steven G. Zylstra Technology

EAST VALLEY INNOVATOR: At Intel Corporation’s East

Valley campus, the company has built special solar parking structures that keep employees’ cars shaded from 100-degree summer temperatures and generate solar power for on-campus use. (Provided photo) 92

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The story of the East Valley’s technology sector begins with the work of its political and community leaders. Organizations like the East Valley Partnership (EVP), led by Roc Arnett in the early 2000s, brought local leaders together to oversee the transformation of the area into a technology powerhouse. This included a rebranding campaign aimed at attracting new industry projects that have positively affected the growth of the community and economy. EVP leaders, including former Gilbert Mayor John Lewis and current President and CEO Denny Barney, have continued Arnett’s work of focusing on technology, education and a positive brand for the region. Political and community leaders in the East Valley such as Sen. Steve Yarbrough, Rep. Jeff Weninger, former Mesa Mayor Scott Smith, and former Chandler Economic Development Director Christine Mackay also have been key contributors to positioning the East Valley as a leader in innovation. These individuals have worked to fight for technology-friendly legislation and create infrastructure, as well as entrepreneurial and STEM programs to feed the pipeline of technology talent necessary for continued success and economic growth.

Today, the East Valley plays host to some of the world’s largest companies in industries such as aerospace, semiconductor, data centers, advanced manufacturing and, most recently, autonomous vehicles. It is now home to one of the world’s richest technology corridors, which is located along the Loop 101. The East Valley includes renowned brands such as Intel, Waymo, Amkor, Microchip, Honeywell, Northrop Grumman (owner of the former Orbital ATK), Benchmark, Local Motors, Keap (formerly Infusionsoft), and Boeing. Arizona has become well-known on a worldwide stage for being the center of development and testing for autonomous vehicles, one of the most innovative and fast-growing sectors in technology. The buy-in from all levels of government in the state have attracted companies like Waymo, Uber and Israelbased startup Imagry to the East Valley. The addition of these companies has played a major role in attracting companies that support and develop Internet of Things, sensor and smart city innovations. In addition to some of the world’s largest technology giants, the East Valley has attracted numerous data centers like CyrusOne and Digital Realty Trust, and ASU Research Park has filled out its office space with high-tech companies like Iridium, KinetX and PADT. The presence of these companies adds to the region’s already diversified technology sector.

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EAST VALLEY PARTNERSHIP Talent, education and entrepreneurial development have been additional key factors in creating the East Valley’s thriving technology ecosystem. The region has some of the most robust and successful STEM education programs and facilities. It is also one of the first regions in the Southwest to embrace entrepreneurial infrastructure like accelerators, co-working spaces and incubators, with organizations like Gangplank and MAC6. To keep young talent living in the East Valley long after graduation, the region also offers a wonderful work/life balance with appealing property values and recreation. Starting with its main campus in Tempe, Arizona State University (ASU) has been a significant contributor to educating and building a robust entrepreneurial atmosphere for students and young professionals. Its programs and infrastructure such as the ASU-Draper University Entrepreneurship Incubator Program, ASU Polytechnic, InnovationSpace and the School for the Future of Innovation in Society are examples of ASU’s commitment to cultivating a strong entrepreneurial spirit in the community. Tempe is also home to the University of Advancing Technology, a school at the forefront of developing academic programs in critical fields such as network security, robotics, embedded

GROUND BREAKER:

Margaret Henschel, one of the more than 50,000 Intel employees in the United States, moves through Fab 32, a highvolume manufacturing facility in Chandler. (Provided photo)

AB | March - April 2019

systems and game development. Many of its students have gone on to start their own companies or been recruited by some of the top technology firms in the Valley. Besides the post-secondary institutions, K-12 schools such as the Self Development Academy and the East Valley Institute of Technology in Mesa, BASIS Chandler, and Gilbert Classical Academy will help fill the pipeline of talent for years to come. The East Valley’s technology-conscious leaders and organizations have created an energetic atmosphere of innovation and prosperity, as well as the infrastructure, talent pool and educational institutions required to sustain success. With its continued focus on building the technology community, the East Valley is well-equipped to attract large technology companies and support entrepreneurial growth. Steven G. Zylstra, Sc.D. (Hon.), serves as president and CEO of the Arizona Technology Council, where he is responsible for strategy, operations, and accomplishment of policy development. Zylstra is a vocal spokesman for the value that technology can provide in raising social and economic standards in Arizona. He has served in numerous technology advisory roles to Arizona governors and currently serves on several association, industry and community boards.

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AB | March - April 2019