SOUTHWEST: Eye Opener

Hard hit by the housing market slump, regional leaders are stepping up efforts to lure businesses and industries to Southwest Florida. “We need to diversify the economy so as to reduce the cyclical nature of the real estate business,” says Mike Jackson, economic development director for Cape Coral, where esidential permits have plunged 78% from 3,501 in 2006 to 760 in 2007.

While Cape Coral seeks new marketing, banking, finance and insurance businesses for its mostly white-collar workforce, Lee County is targeting high-tech computer-related companies and biosciences firms — an effort that should get a boost from the new southwest chapter of BioFlorida. “A key component for us is not only that they’re tech based — because those types of industries mean higher paid jobs — but that they aren’t bound by the local economy,” says Jennifer Berg, marketing and communications manager for the Lee County Economic Development Office.

See population, income and job statistics from this region. Explore

Richard Pegnetter, dean of the college of business at Florida Gulf Coast University, is spearheading a regional branding effort to create a cohesive identity for Lee, Collier, Glades, Hendry and Charlotte counties.

Sarasota and Manatee counties, meanwhile, have partnered in an effort to recruit businesses in the computer software and health and life sciences industries. “If we’re really going to be serious players about growing biotech, we need to be doing it as a megaregion really,” says Nancy Engel, executive director of the Manatee County Economic Development Council.

The region’s rural counties face a double whammy from property tax cuts coupled with the housing slump. Glades County Economic Development Director Tracy Whirls says the county stands to lose $3.7 million over the next five years and is implementing a hiring freeze, job reductions and spending cuts.

POPULATION TRENDS

With more than half a million residents, Lee County is both the most populated county and the fastest growing, having doubled its population over the past 20 years. Regional growth will slow, according to the Regional Economic Research Institute at Florida Gulf Coast University’s Lutgert College of Business, because of a scarcity of land, building codes and hurricane restrictions, higher land costs, increased hurricane activity and a smaller cohort of retirees to follow the Baby Boomer generation.

Sarasota

boom years (Sarasota) Ken Sanborn » Business is booming for Gyrocam Systems, which manufactures security cameras and airborne surveillance equipment for law enforcement and the military, says President and CEO Ken Sanborn. The defense contractor’s revenue has grown from $5 million to $230 million in 1½ years. [Photo: Michael McElroy]

Local officials are looking into fast-tracking transportation and public works projects to boost the economy and stem further layoffs in the hard-hit construction industry. The 1-cent sales tax renewal approved by voters last November will raise about $1.4 billion over the next 15 years and could provide critical funding for some of those capital improvements. The Greater Sarasota Chamber of Commerce, meanwhile, has announced a $2-million initiative called Sarasota Tomorrow to encourage job creation, a friendlier business climate and a better transportation system.

LEADERS

» Former Sarasota mayor and former Sarasota City Commissioner Richard Martin is spearheading an effort by the Community Alliance of Sarasota County, an umbrella organization for 52 local non-profits, to create a $5-million emergency fund to provide assistance to homeowners on the brink of foreclosure. Martin, who is executive director of the Suncoast Partnership to End Homelessness, says the idea of the emergency fund is to provide education — such as credit counseling and credit repair services — as well as cash to those in need. “What we need is a big pot of money to dole out at $1,000 apiece to keep families afloat.”

HOUSING TREND / SARASOTA

The city issued 71 permits for new residential construction in 2007
compared to 112 in 2006 — a 37% drop. Permits for new commercial construction, meanwhile, rose by 12.5% from 16 to 18.
Home building makes a significant impact on the U.S. economy — comprising about 4% of GDP. Residential construction in Sarasota County makes up roughly 30% of the economy, says Kathy Baylis, president of the Economic Development Corporation of Sarasota County.

Tags: Southwest