Economists have upgraded the West Valley's business
prognosis from cautiously hopeful, the outlook a year ago, to downright optimistic.
prognosis from cautiously hopeful, the outlook a year ago, to downright optimistic.
"We have the winds at our back after having a stiff wind in our face for a long time," John Graham, president and CEO of development firm Sunbelt Holdings, told business leaders this week. "The West Valley is an area we believe in."
The feeling of relief was evident among about 300 members of Westmarc. The West Valley coalition of business, civic and educational leaders gathered at the Wigwam Resort in Litchfield Park for the annual economic development summit on Wednesday.
The same group had gasped at last year's summit, when Arizona State University economist Dennis Hoffman showed business leaders charts illustrating unprecedented losses in Arizona jobs, businesses and population during the recession.
, businesses and population during the recession.
The mood at the Wigwam was many degrees lighter. A panel of real estate and business leaders praised the ongoing construction of Loop 303, a key highway project that they said will pave the way for a new boom in jobs and growth in the West Valley.
lighter. A panel of real estate and business leaders praised the ongoing construction of Loop 303, a key highway project that they said will pave the way for a new boom in jobs and growth in the West Valley.
Loop 303 is a "game-changer" in the same way that Loop 202 made Mesa an attractive place to locate companies and employees, said Barry Broome, president and CEO of GPEC, the Greater Phoenix Economic Council.
When construction is complete, Loop 303 will loop from Interstate 10 to Interstate 17.
A classic growth market
Civic and business leaders should do more to advertise and exploit West Valley amenities, such as the football and hockey stadiums, a foreign trade zone, ASU West and the undeveloped White Tank Mountains, Graham said.
The developer noted that the region has a "shovel-ready mentality" that will be vital to landing big employers as the nation's economic recovery continues.
"The bottom line is we're very optimistic," Graham said. "We're seeing tons of activity."
Peter O'Neil, a senior research analyst for Colliers International, said that the West Valley sees the worst and the best of economic cycles because it is a "classic growth market." It contracts more severely than the rest of the Valley but also expanding more rapidly, he said.
The region saw explosive growth during the real estate boom and is again on that path, O'Neill said.
boom and is again on that path, O'Neill said.Potential for growth
Part of the reason for the optimism is that the West Valley is the only part of the Phoenix metro area that can consistently deliver large sites that have road access, water and other desirable features, Broome said.
GPEC research indicates that it could thrive as a center for the import-export market, Broome said.
"At the end of the day, it's all about building market potential," Broome said. "I think market potential is going in the right direction. I'm excited about it."
But he cautioned that large employers expect to be offered incentives, such as breaks on property taxes, even if that is difficult on the local political level.
"It isn't about buying a company," Broome said. "It's about executing against the expectations of that company."
Solar is another industry that's set to take off in the next few years, and the West Valley is well positioned to take advantage of that, Broome said.
But, he added, that regional leaders need to be ready to move quickly to resolve permits and bureaucratic issues for large-scale deals.
"Businesses won't wait for things," Broome said. "That is a huge advantage."
won't wait for things," Broome said. "That is a huge advantage."
West Valley looks the way metro Phoenix looked in the 1960s -- a region with a small population that has a huge potential for growth, said Jerry Colangelo, co-chairman of the Arizona Commerce Authority.
"What we need everyone in the room to do is believe in it, trust in it," Colangelo said. "Think about today and think about what's going to happen in the next 25 years."
Loop 303 projects
West Valley cities and developers already anticipate the completion of the 39-mile Loop 303 in the next few years. Projects already being planned or under way near Loop 303:
Prasada regional mall with commercial, official and residential space in Surprise. A commercial section in Peoria's master-planned Vistancia development. PV 303, a master-planned business park in Goodyear.Read more: http://www.azcentral.com/community/glendale/articles/2012/04/19/20120419economists-economic-winds-west-valleys-back.html#ixzz31i025zYS
