LEE S SUMMIT. Advantage 2012

Transcription

1 LEE S SUMMIT Advantage 2012

2 The Lee s Summit Advantage Welcome to the 2012 edition of The Lee s Summit Advantage. This two-part profile details the advantages of Lee s Summit as a place to live and do business. Part I: Lee s Summit A National Comparison The first part of the document compares Lee s Summit to 15 metro areas around the country that are notable because of their economic vitality and their high quality of life. The data in this section includes the following measures: Demographics Growth Indicators Labor Force Characteristics Quality of Life Part II: Lee s Summit A Leader in the Kansas City Metropolitan Area The second part of this document is a comparative statistical profile of the City of Lee s Summit, Missouri and its surrounding communities. It provides information on: Population Growth and Demographic Characteristics Household Characteristics Household Lifestyle Clusters Labor Force Characteristics Employment Estimates Non-residential Development Residential Development and Housing Costs Education The purpose of this portion of the profile is to inform current and potential Lee s Summit businesses and residents about the city and the region. The profile compares Lee s Summit to Independence; Eastern Jackson County, MO; the Northland, MO area (which is comprised of Clay and Platte Counties); Johnson County, KS and the Kansas City metro area, in order to put the data in a regional context. There is a significant amount of data presented in this document. Most of the key statistical information is summarized in descriptive text, but the reader should rely on the tables, charts and maps to get a complete picture of the city and its economic environment. The Lee s Summit Economic Development Council s (LSEDC) website contains additional information on many aspects of the community. Lee s Summit Economic Development Council: Lee s Summit Advantage 1

3 Part I: Lee s Summit A National Comparison Introduction to National Comparative Locations The objective of this portion of the profile is to present Lee s Summit in comparison to metro areas across the country that are being recognized for their economic growth, career opportunities and high quality of life. All of the metro areas included in this comparison ranked among the top areas in one or more of the following publications: Forbes Best Places for Business and Careers, America s 50 Best Cities by Bloomberg-Business Week, and the Milken Institute s Best Performing Cities. In addition, Johnson County, KS was included in this comparison because of its leading role in fueling growth in the Kansas City metropolitan area. Methodology Since many of the metro areas in the comparison are substantially larger than Lee s Summit, all of the comparisons have been normalized to account for differences in size. For example, data can be compared in terms of growth rates or on per capita basis. Below, please find a brief description of these highly desirable, quality-oflife oriented communities. While their name recognition may be high, Lee s Summit shares many quantifiable, enviable similarities with them: Austin, TX is at the heart of a dynamic five-county region recognized for its talented workforce, superior business environment and career advancement opportunities. Austin s well-educated workforce, overall low business costs and available, affordable commercial space offer opportunity for business growth. Forbes magazine ranked Austin in the top ten of their 2011 Best Places for Business and Careers, and the Milken Institute named Austin as one of its Top Performing Cities in Boulder, CO is not only a renowned tourist destination with a highly attractive quality of life, but also an attractive location for the creative class and the types of industries that require this type of talent. Boulder is home to a diverse community of businesses in the hightech, biotech, telecommunications, publishing and manufacturing fields. Boulder was ranked in the top 50 of Forbes 2011 Best Places for Business and Careers. Columbia, MO, offers a high quality of life for people of all ages and interests, a low cost of living, an excellent education system, outstanding health care facilities, and abundant employment opportunities. Its central location makes it an attractive choice for many businesses. Money Magazine named Columbia a contender in their 2011 Best Places to Live list, and Forbes included Columbia in their 2010 Best Small Places for Business and Careers list, noting the city s low cost of doing business, educated workforce and strong job growth. Des Moines, IA is a hub of government, business activity, arts and cultural affairs that offers its residents outstanding schools, affordable housing, and one of the nation s shortest commute times. Des Moines is also a regional transportation hub with a well-developed system that includes a network of interstate highways and rail freight service. Forbes ranked Des Moines number two on its 2011 list of Best Places for Business and Careers, noting the city s low cost of doing business and strong projected job growth. Fayetteville, AR Forbes ranked Fayetteville as one of the nation s top areas for business opportunities in 2011 because of its low cost of business and strong job growth. Although Wal-Mart is a dominant player in Fayetteville s economy, this metro area is home to the corporate offices of many Fortune 500 firms, as well as a large state university. It is also a very affordable place to live and has experienced a high rate of in-migration in recent years. Iowa City, IA has an economy that is based on thriving commerce, a major university, and a number of national and international businesses. While established firms continue to prosper and expand in Iowa City, opportunities abound for new industries such as biotech and renewable energy. The city s low cost of doing business, highly educated workforce, and vibrant local culture earned it second place on Forbes 2010 Best Small Places for Business and Careers list and ranked it ninth in the Milkin Institutes Best Performing Cities index in Johnson County, KS which has been a driving force behind economic growth in the Kansas City metro area, lies at the heart of the nation and possesses the key ingredients necessary for economic growth and success. The county boasts nationally ranked schools, a low crime rate, high quality neighborhoods, a low cost of living, and a variety of cultural and entertainment amenities. Moreover, in Money magazine's 2010 annual Best Places to Live Johnson County had three cities ranked in the top 100 and Business Week recognized Kansas City as one of America s 50 Best Cities in Lawrence, KS is a city that provides all of the amenities of a large metropolitan area while still maintaining a strong sense of community and a dynamic business environment. Forbes recognized Lawrence as one of the nation s Best Small Places for Business and Careers in 2010 because of its highly educated workforce, low cost of business and strong job growth. Lincoln, NE enjoys a small-town ambiance with the amenities, attractions and entertainment opportunities of a metropolitan area. It offers a central location with a stable and cost-competitive business environment and an excellent educational system. Business Week ranked Lincoln 22nd on their list of the America s 50 Best Cities and noted the area s very low unemployment rate. The city was also included in Forbes 2011 list of Best Places for Business and Careers. Omaha, NE has a strong spirit of cooperation between government and business in the metropolitan area and within the State of Nebraska. The result of this distinct public-private partnership is shown in various high rankings in national business climate comparisons and decades of steady development 2 Lee s Summit Economic Development Council: Lee s Summit Advantage

4 Part I: Lee s Summit A National Comparison across the metropolitan area. Because of Omaha s strong and stable economy, low cost of living, world-class healthcare facilities, and variety of cultural and entertainment amenities, Forbes ranked it in the top 25 cities Best Places for Business and Careers in Raleigh-Cary, NC consistently ranks among the nation s best places to live, work, raise a family and earn a world-class education. It is known nationally for its high tech industry base and is home to many nameplate firms. The trio of local research universities helps support continued research and innovation. Both Forbes and Business Week gave Raleigh-Cary their highest ranking in 2011 and the Milken Institute recognized Raleigh-Cary as one of the top 25 Best Performing Cities in San Antonio, TX is attracting people and businesses with low unemployment and a vibrant social life. The area is evolving into a large-scale medical hub for military personnel, due to the expansion of Brooke Army Medical Center, which is drawing more private-sector suppliers to the area. In addition, San Antonio s reputation as a trade and distribution hub with a lowcost environment will continue to create business opportunities in the long term. Forbes, Business Week and the Milken Institute all rated San Antonio as a best place in Springfield, MO also known as the cultural center of the Ozarks, is home to Missouri State University, the state s second largest university, and is consistently rated highly for its tax climate, livability factors and growth in jobs and population. Springfield was recently recognized for its low cost of doing business and job growth when Forbes ranked it in their 2011 list of Best Places for Business and Careers. Topeka, KS, the capital of Kansas, is the regional hub for a seven-county area that is served by a comprehensive transportation network which provides quick and efficient market access for businesses. Topeka has a diverse business community ranging from federal and state government to distribution centers and manufacturing facilities, complimented by a full range of retail and service businesses. Topeka s Washburn University, Kansas University and Kansas State University draw young talent to the city and contribute to a diverse and highly skilled workforce. New residents are attracted by the low cost of living, affordable housing market and vibrant cultural life. Tulsa, OK was once heavily dependent on the oil industry, but the city s diversification efforts have created an economic base in a number of other industries including aerospace, technology and finance. The Tulsa Port of Catoosa, at the head of the McClellan- Kerr Arkansas River Navigation System, is the most inland river port in the U.S. with access to international waterways. Tulsa is considered to be the cultural and arts center of Oklahoma, and Forbes ranked it as a Best Place for Business and Careers in The results of this national comparison show that Lee s Summit is competitive with these nationally-ranked areas for many business climate and quality-of-life indicators. The Lee s Summit Advantage is illustrated in a variety of comparisons of demographics, labor force quality, growth indicators and quality-of-life factors. The city s attractiveness as both a business location and a place to live offer compelling reasons why more than 2,300 establishments choose Lee s Summit as the best place to operate their business. Lee s Summit Economic Development Council: Lee s Summit Advantage 3

5 Demographics Lee s Summit experienced a 29 percent increase in population from 2000 to 2010, and is projected to grow by 27 percent between 2010 and This influx of new residents also resulted in growth of the area s labor force, bringing new ideas and sources for new innovation to the community. The city s projected growth rate ranks fourth among the comparative areas. Along with population growth, the city has also had a high level of income growth. Since many of the residents moving to the area were attracted by the educational system, new housing developments and high quality of life, it is not surprising that they tended to raise the overall standard of living in the community. Individuals with higher incomes and higher education levels are more likely to move for quality of life reasons. Lee s Summit ranked first among the comparative areas in terms of median household income for 2009 at $71,740. In terms of income growth from 2000 to 2009, Lee s Summit posted a 17 percent increase for the period. Long-term sustained growth in both income and population are evidence of the superior features of the community that create the Lee s Summit Advantage. Historic & Projected Population Growth Austin, TX Johnson County, KS Raleigh-Cary, NC LEE'S SUMMIT, MO Fayetteville, AR Springfield, MO Iowa City, IA San Antonio, TX Boulder, CO Lawrence, KS Columbia, MO Des Moines, IA Lincoln, NE Omaha, NE Tulsa, OK Topeka, KS 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Pop Growth Pop Growth Source: U. S. Census Bureau, 2000 and 2010; Woods & Poole Economics, Lee s Summit Economic Development Council: Lee s Summit Advantage

6 Demographics Median Household Income LEE'S SUMMIT, MO Johnson County, KS Boulder, CO Raleigh-Cary, NC Des Moines, IA Austin, TX Omaha, NE Lincoln, NE Iowa City, IA Topeka, KS San Antonio, TX Lawrence, KS Columbia, MO Tulsa, OK Fayetteville, AR Springfield, MO $30,000 $40,000 $50,000 $60,000 $70,000 Source: U.S. Census Bureau, American Community Survey; Claritas, Household Income Growth Tulsa, OK Topeka, KS Columbia, MO Fayetteville, AR Des Moines, IA Omaha, NE Springfield, MO San Antonio, TX Lawrence, KS Iowa City, IA LEE'S SUMMIT, MO Lincoln, NE Johnson County, KS Boulder, CO Austin, TX Raleigh-Cary, NC 0% 5% 10% 15% 20% 25% 30% 35% Source: Woods & Poole Economics, Lee s Summit Economic Development Council: Lee s Summit Advantage 5

7 Growth Indicators In addition to population and income growth, several other measures of growth are shown in the comparison. These include housing unit growth, growth in overall assessed value and growth in number of business establishments. All three are measures of a robust local economy. In terms of percentage increase in total housing stock in the last 10 years, Lee s Summit ranks fourth, preceded by Raleigh-Cary, Fayetteville and Austin, TX. Lee s Summit increased its total housing stock by 32 percent between 2000 and 2010 adding more than 8,700 new units. Due to the level of new development, residential assessed value has increased an average of 6 percent per year in Lee s Summit since Total assessed value and nonresidential assessed value also increased by an average of 6 percent per year. All of these are good measures of wealth building in the community. Lee s Summit currently has about 82 percent residential, versus 18 percent commercial assessed valuation, giving the city a key base of commercial and industrial taxpayers. The market value of real and personal property in the city exceeded $7.9 billion in Between 2000 and 2009, Lee s Summit experienced a 23 percent increase in the number of local business establishments, from 1,865 in 2000, to 2,298 in Lee s Summit ranked fourth among the comparative areas in terms of business growth. Other areas with growth rates of 20 percent or more include San Antonio, TX; Raleigh-Cary, NC; Columbia, MO; Austin, TX; Fayetteville, AR and Iowa City, IA. Percent Increase in Total Housing Stock Austin, TX Fayetteville, AR Raleigh-Cary, NC LEE'S SUMMIT, MO Columbia, MO Iowa City, IA Des Moines, IA San Antonio, TX Springfield, MO Johnson County, KS Omaha, NE Lawrence, KS Lincoln, NE Tulsa, OK Boulder, CO Topeka, KS 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: Bureau of the Census, Building Permit Data. 6 Lee s Summit Economic Development Council: Lee s Summit Advantage

8 Average Annual Growth in Total Assessed Value Growth Indicators Raleigh-Cary, NC Austin, TX San Antonio, TX Fayetteville, AR LEE'S SUMMIT, MO Tulsa, OK Omaha, NE Des Moines, IA Iowa City, IA Lincoln, NE Columbia, MO Boulder, CO Springfield, MO Lawrence, KS Topeka, KS Johnson County, KS -2% 4% 9% 14% 19% Source: County Assessors, City Finance Departments. Average Annual Growth in Residential Assessed Value Raleigh-Cary, NC Austin, TX Columbia, MO San Antonio, TX LEE'S SUMMIT, MO Tulsa, OK Des Moines, IA Omaha, NE Iowa City, IA Lincoln, NE Boulder, CO Lawrence, KS Springfield, MO Johnson County, KS 0% 2% 4% 6% 8% 10% 12% 14% Source: County Assessors, City Finance Departments. Lee s Summit Economic Development Council: Lee s Summit Advantage 7

9 Growth Indicators Average Annual Growth in Non-Residential Assessed Value Austin, TX San Antonio, TX Raleigh-Cary, NC Springfield, MO Columbia, MO Omaha, NE LEE'S SUMMIT, MO Tulsa, OK Lincoln, NE Lawrence, KS Des Moines, IA Boulder, CO Iowa City, IA Johnson County, KS -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% Source: County Assessors, City Finance Departments. Growth in Number of Business Establishments Iowa City, IA Fayetteville, AR Austin, TX LEE'S SUMMIT, MO Columbia, MO Raleigh-Cary, NC San Antonio, TX Topeka, KS Springfield, MO Lincoln, NE Omaha, NE Des Moines, IA Tulsa, OK Johnson County, KS Boulder, CO Lawrence, KS 0% 5% 10% 15% 20% 25% 30% 35% 40% Source: County Business Patterns, Lee s Summit Economic Development Council: Lee s Summit Advantage

10 Labor Force Characteristics One measure of the overall labor force potential of an area is the share of population that falls between the ages of 25 and 54, considered to be the prime workforce age range. At 43 percent, Lee s Summit ranks fifth among the national comparative areas, but only two percentage points separate the city from top ranking Austin, TX in terms prime working age population share. Another measure of labor force that focuses more on quality than quantity is educational attainment. Lee s Summit is only two percentage points behind top ranked Lawrence, KS in terms of the share of the adult population that has completed high school. Among a formidable group of competitors, the city ranks sixth in terms of the share of college graduates. The talents of resident workforce are what draw high quality companies to an area. An educated workforce is a key factor in creating an environment with high worker productivity and innovation. Nationwide, jobs requiring post secondary, vocational, or higher education are accounting for a growing share of total employment, and areas with a well-educated workforce are in the best position to take advantage of this trend. Highly educated workers are a key site location factor for high tech firms as well as other new economy or knowledge-based industries. They also tend to boost incomes and income growth in the community. Education is also an indicator of entrepreneurial potential, because entrepreneurs tend to have higher levels of education and are often attracted to areas with a similarly educated population base. The occupational makeup of the nation s workforce is changing as we move toward a knowledge-based economy. The share of managerial, professional and technical workers has increased nationally, especially in metro areas with a large number of corporate and regional headquarters. This is also a good measure of the overall quality of the resident workforce. Lee s Summit ranks second among national competitors in terms of managerial workers, and 13th in terms of technical workers as a share of total employment. Another measure of workforce quality is value added. The value added in manufacturing is both a measure of worker productivity and a measure of the types of industries represented in the local economy. High tech industries, for example, tend to have higher value added than low tech industries. Lee s Summit ranked 14th among national competitors in terms of value added per manufacturing worker. In reviewing this comparison, it is important to note that many of these growing areas are attracting more high tech firms that generally have very high value added levels. Just as higher education levels are an indicator of entrepreneurial potential, the share of owner-operated business is a way to measure the realization of that potential. Places with a reasonable cost of doing business and an attractive quality of life tend to have more owneroperated businesses. Lee s Summit ranks sixth in terms of its share of owneroperated light manufacturing and distribution establishments. This is both a reflection of the number of owner-operators and the mix of light manufacturing and distribution operations as a share of total establishments. Prime Working Age Population Share of Population Ages 25 to 54 Raleigh-Cary, NC Austin, TX Johnson County, KS Des Moines, IA LEE'S SUMMIT, MO Boulder, CO Omaha, NE San Antonio, TX Fayetteville, AR Tulsa, OK Lincoln, NE Iowa City, IA Springfield, MO Topeka, KS Columbia, MO Lawrence, KS 30% 32% 34% 36% 38% 40% 42% 44% 46% Source: U.S. Census Bureau, Lee s Summit Economic Development Council: Lee s Summit Advantage 9

11 Labor Force Characteristics Educational Attainment - Population over 25 Boulder, CO Johnson County, KS Lawrence, KS Iowa City, IA Raleigh-Cary, NC LEE'S SUMMIT, MO Columbia, MO Lincoln, NE Austin, TX Des Moines, IA Omaha, NE Tulsa, OK Topeka, KS San Antonio, TX Springfield, MO Fayetteville, AR 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% HS Graduates College Graduates Source: U.S. Census Bureau, American Community Survey; Claritas, Share of Managerial Workers Johnson County, KS LEE'S SUMMIT, MO Raleigh-Cary, NC Des Moines, IA Boulder, CO Austin, TX Lincoln, NE Fayetteville, AR Omaha, NE Tulsa, OK San Antonio, TX Topeka, KS Iowa City, IA Lawrence, KS Columbia, MO Springfield, MO 5% 7% 9% 11% 13% 15% 17% 19% 21% Source: U.S. Bureau of the Census, American Community Survey. 10 Lee s Summit Economic Development Council: Lee s Summit Advantage

12 Share of Technical Workers Labor Force Characteristics Boulder, CO Raleigh-Cary, NC Iowa City, IA Columbia, MO Austin, TX Omaha, NE Des Moines, IA Johnson County, KS Lawrence, KS Springfield, MO Lincoln, NE San Antonio, TX LEE'S SUMMIT, MO Topeka, KS Tulsa, OK Fayetteville, AR 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: U.S. Bureau of the Census, American Community Survey. Value Added per Production Worker Raleigh-Cary, NC Austin, TX Iowa City, IA Topeka, KS Johnson County, KS Des Moines, IA Tulsa, OK Omaha, NE Boulder, CO Lincoln, NE Columbia, MO San Antonio, TX Fayetteville, AR LEE'S SUMMIT, MO Lawrence, KS Springfield, MO $0 $50 $100 $150 $200 $250 $300 $350 $400 (Thousands) Source: Census of Manufacturing, (Most current data available) Lee s Summit Economic Development Council: Lee s Summit Advantage 11

13 Labor Force Characteristics Share of Owner-Operated Light Manufacturing and Distribution Operations Tulsa, OK San Antonio, TX Johnson County, KS Springfield, MO Boulder, CO LEE'S SUMMIT, MO Austin, TX Fayetteville, AR Lawrence, KS Des Moines, IA Columbia, MO Topeka, KS Iowa City, IA Omaha, NE Lincoln, NE Raleigh-Cary, NC 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% Source: Dun and Bradstreet Marketplace, Share of Owner-Operated Business and Professional Services Establishments Lawrence, KS Boulder, CO Columbia, MO Topeka, KS Johnson County, KS Iowa City, IA Austin, TX San Antonio, TX Lincoln, NE LEE'S SUMMIT, MO Raleigh-Cary, NC Omaha, NE Springfield, MO Tulsa, OK Des Moines, IA Fayetteville, AR 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 20% Source: Dun and Bradstreet Marketplace, Lee s Summit Economic Development Council: Lee s Summit Advantage

14 While the share of people using computers and/or the Internet may not directly affect economic activity or labor force quality in the short run, it is representative of an area s progress toward the digital economy. The share of households nationwide with Internet access at home has more than doubled since Due to the declining cost of computers Connectivity and web access, a broader range of people are now using the Internet. Although people of varying education levels increasingly have computers and Internet access, areas with higher educational attainment are more likely to have higher computer usage. Lee s Summit ranks third among the comparative areas in terms of households with computers, and eighth in terms of computer users who also have high speed Internet access at home. According to the Federal Communications Commission (FCC), there are up to 17 high speed Internet providers that offer service in various parts of Lee s Summit, well above state and metro-area averages. Household Computer & Internet Usage Topeka, KS Columbia, MO Iowa City, IA Omaha, NE Lawrence, KS Boulder, CO Tulsa, OK LEE'S SUMMIT, MO Austin, TX San Antonio, TX Des Moines, IA Fayetteville, AR Springfield, MO Raleigh-Cary, NC 75% 80% 85% 90% 95% 100% Computer in Home High Speed Internet in Home Note: Internet users reflect share of households with computers that have high speed (not dial up) internet access. Source: Census Current Population Survey, Computer and Internet Use Supplement, Data not available for Johnson County, KS or Lincoln, NE. Lee s Summit Economic Development Council: Lee s Summit Advantage 13

15 Quality of Life Whether you own or operate a company, or just work for one, quality of life is an important factor. A superior quality of life is one of the factors that truly distinguishes Lee s Summit from other areas. This is demonstrated by: excellent schools very low crime rates new reasonably-priced housing sunny climate high quality health care services a wide range of parks and recreational amenities The primary and secondary schools in Lee s Summit rate highly within the region, but also on a national basis. Drawing on information used to calculate Expansion Management s Education Quotient, the Lee s Summit School District can be compared to other metro areas in terms of student outcomes and the amount of resources expended on education. Public schools are especially important to the economic future of the nation, as well as to specific communities. Their ability to produce students with the skills to succeed in the knowledge economy will strongly impact future economic prosperity. The students in school now will form the backbone of the community s future workforce. Companies who are considering relocating to an area look at secondary schools both in terms of where senior managers can send their children, and in terms of the results they are producing in terms of creating a viable future labor pool. Graduation rates are a measure of how well school districts are performing their basic mission of educating children. Lee s Summit ranks sixth among the comparative areas with a graduation rate of 91 percent, which is only four percentage points away from top ranked Johnson County, KS. 1 Student-teacher ratios, per-pupil expenditures and average teacher salaries are measures of a community s financial commitment to education. Comparatively, class sizes in Lee s Summit are attractive and expenditures-per-pupil are low; teacher s salaries are very competitive, especially given the relative cost of living. 1. The graduation rate shown here is consistent across the comparative areas, but may vary from the methodology used by the Missouri Department of Education that is shown in Section II. Education Quality Student- Average Per Pupil Graduation Teacher Teacher Expenditures Rate Ratio Salary Johnson County, KS $11, % 14.8 $52,931 Iowa City, IA $10, % 15.0 $43,648 Raleigh-Cary, NC $10, % 14.9 $43,872 Springfield, MO $9, % 14.4 $38,238 San Antonio, TX $11, % 15.1 $42,203 LEE'S SUMMIT, MO $9, % 19.0 $50,890 Columbia, MO $11, % 13.6 $41,604 Boulder, CO $10, % 17.7 $45,373 Omaha, NE $10, % 14.3 $38,074 Austin, TX $12, % 14.3 $43,160 Tulsa, OK $8, % 16.2 $35,504 Des Moines, IA $12, % 14.1 $43,518 Topeka, KS $10, % 12.7 $49,432 Lincoln, NE $12, % 13.8 $43,507 Fayetteville, AR $9, % 14.3 $39,242 Lawrence, KS $10, % 14.7 $49,647 Note: In order to create consistent comparisons between states, graduation rates are based on number of high school graduates divided by number of 11th graders enrolled in the previous year. This is consistent with the methodology used in the Education Quotient. Source: Missouri Department of Education, 2010 District Profile; Kansas State Department of Education, 2011; National Center for Education Statistics, Lee s Summit Economic Development Council: Lee s Summit Advantage

16 Another quality of life measure is crime rate. This is particularly important in suburban areas where people go to escape the higher crime rates in urban areas. Lee s Summit ranks first in terms of having the lowest rate of violent Quality of Life crimes per 100,000 people. In terms of property crimes, Lee s Summit ranks fifth best. Violent & Property Crime Rates Per 100,000 Population LEE'S SUMMIT, MO Johnson County, KS Boulder, CO Des Moines, IA Raleigh-Cary, NC Iowa City, IA Fayetteville, AR Austin, TX Omaha, NE Lincoln, NE Columbia, MO Lawrence, KS Topeka, KS Springfield, MO San Antonio, TX Tulsa, OK ,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 5,500 6,000 Source: FBI Uniform Crime Report, Violent Property Climate, and in particular the number of days that are sunny or minimally cloudy, can be an important factor for many people in choosing a desirable place to locate. With very little variation among many of the cities, Lee s Summit ranks eighth among the comparable Annual Number of Mostly Sunny Days areas with a total of 213 mostly sunny days per year. The national average is 208 days per year. Boulder, CO Austin, TX Tulsa, OK San Antonio, TX Raleigh-Cary, NC Omaha, NE Fayetteville, AR Springfield, MO Johnson County, KS LEE'S SUMMIT, MO Lincoln, NE Topeka, KS Lawrence, KS Des Moines, IA Iowa City, IA Columbia, MO Source: Cities Ranked & Rated, Lee s Summit Economic Development Council: Lee s Summit Advantage 15

17 Quality of Life Housing prices are another indicator of the ability of residents to achieve a desirable lifestyle. Housing prices are particularly important in relation to income levels. Areas with above average income levels and average or below average housing prices offer the best value. At $185,732, Lee s Summit ranks 12th in terms of housing prices, compared to an overall average of $169,775 for these areas, which may reflect the fact that housing in Lee s Summit tends to be newer. At 76 percent, however, the share of owner occupied housing in Lee s Summit is the highest among the comparable areas, an indication of the affordability of housing in the area despite the higher average price. LEE'S SUMMIT, MO Des Moines, IA Johnson County, KS Topeka, KS Tulsa, OK Raleigh-Cary, NC Omaha, NE Springfield, MO San Antonio, TX Fayetteville, AR Boulder, CO Lincoln, NE Iowa City, IA Austin, TX Columbia, MO Lawrence, KS Share of Owner Occupied Housing 40% 50% 60% 70% 80% Source: U.S. Census Bureau, Median Housing Values Topeka, KS San Antonio, TX Tulsa, OK Springfield, MO Omaha, NE Lincoln, NE Fayetteville, AR Columbia, MO Des Moines, IA Iowa City, IA Lawrence, KS LEE'S SUMMIT, MO Austin, TX Raleigh-Cary, NC Johnson County, KS Boulder, CO $100,000 $150,000 $200,000 $250,000 $300,000 $350,000 Source: U.S. Census Bureau, American Community Survey. 16 Lee s Summit Economic Development Council: Lee s Summit Advantage

18 Quality of Life Finally, access to quality health care is an important component of quality of life for residents of any age. This includes access to physicians as well as hospital care. Lee s Summit ranks seventh in terms of both hospital beds per capita and physicians per capita, which is impressive given that many of the metro areas in the comparison have well developed health care networks. Health Care Accessibility Iowa City, IA Columbia, MO Omaha, NE Johnson County, KS Boulder, CO San Antonio, TX LEE'S SUMMIT, MO Des Moines, IA Springfield, MO Tulsa, OK Lincoln, NE Topeka, KS Austin, TX Raleigh-Cary, NC Lawrence, KS Fayetteville, AR Hospital Beds per Capita Physicians Per Capita Source: Cities Ranked & Rated, 2007; University of Kansas, 2010 Kansas Statistical Abstract. Lee s Summit Economic Development Council: Lee s Summit Advantage 17

19 Part II: Lee s Summit A Leader in the Kansas City Metro Area Introduction to Lee s Summit Regional Advantage According to the 2010 Census, Lee s Summit, Missouri is a city of about 91,364 people, comparable in size to Richardson, TX; Asheville, NC; Dearborn, MI; Champaign, IL and Sandy Springs, GA. It is located in the southeast part of the Kansas City metropolitan area, is the sixth most populous city in the state and the seventh largest in land area (65 sq. miles) after St.Louis, Wildwood and Independence. Lee s Summit is located near the geographic center of the United States in one of the nation s major transportation hubs, with access to major manufacturing and trade markets throughout the Midwest and the South. The Kansas City metro area also offers advanced telecommunications infrastructure and is a prime location for e-business. The City of Lee s Summit has grown significantly faster than the metro area, at a rate of 3.5 percent per year over the past 3 years, due to its excellent school systems, diverse housing choices, attractive quality of life and accessibility to Kansas City. Comparative Areas This profile compares Lee s Summit to the neighboring community of Independence, as well as to the Eastern Jackson and Northland Regions and to metropolitan Kansas City. Independence is located north of Lee s Summit and borders Kansas City to the west. The Northland region is comprised of both Clay and Platte Counties. Regional Summary Lee's Indepen- Eastern Johnson Kansas Summit dence Jackson Northland County City MSA Population , , , , ,179 2,035,334 Median Age Households ,429 48, , , , ,637 Median Household Income 2011 $71,740 $43,002 $52,934 $57,990 $70,914 $53,901 % High School Graduates % 86.8% 69.9% 91.7% 95.3% 89.9% (Age 25 and Over) Employed Persons ,678 57, , , ,603 1,086,570 Employment ,828 35, , , , ,920 Housing Units ,098 54, , , , ,991 Median Home Value 2011 $185,732 $105,374 $133,541 $154,774 $204,569 $147,875 Median Gross Rent 2009 $900 $689 $792 $756 $849 $715 Source: 2010 Census; American Community Survey, ; County Business Patterns, 2009; Claritas, Note: Northland includes Clay and Platte Counties. Eastern Jackson, MO includes the communities of Lee's Summit, Blue Springs, Grandview, Grain Valley, Independence, Sugar Creek, Raytown, Oak Grove and Greenwood. 18 Lee s Summit Economic Development Council: Lee s Summit Advantage

20 Location, Location, Location Lee s Summit is well connected to the regional freeway system, has local access to rail transportation and regional access to air transportation. The urban freeway system in the region provides superior accessibility to businesses in Lee s Summit, linking them with the greater Kansas City area and regional interstate routes. I-470 runs northeast through Lee s Summit and intersects I-70, a major east-west route that connects Independence with Kansas City to the west and St. Louis to the east. US 50 runs east-west through Lee s Summit, heading across the state toward Jefferson City. Finally, Highway 291 runs north-south through the central part of Lee s Summit, forming a triangle with I-470 and US 50. The Union Pacific and Burlington Northern Santa Fe Railroads serve Lee s Summit and Independence for freight transport. In addition, for passenger rail, there is an Amtrak station in downtown Lee s Summit and Independence. Lee s Summit has a general aviation airport located northwest of I-470 in the northern part of the city, which is a Location & Access unique feature among the comparative cities. Businesses and residents in the region also have access to the Kansas City International Airport within a 45-minute drive. The Kansas City International Airport serves 10 million passengers annually and offers convenient, efficient domestic and international service to travelers. It should be noted that the city boundary depicted in all of the maps in this document incorporates the Memorandum of Understanding between Unity Village and the City of Lee s Summit on the assumption that both parties can negotiate the final agreements. Metro Area Context Lee s Summit Economic Development Council: Lee s Summit Advantage 19

21 Population Profile and Growth Trends Lee s Summit s population of 91,364 people in 2010 comprised roughly 4.5 percent of the metro area population. The average annual growth rate in Lee s Summit of 3.5 percent from 2007 to 2010 is significantly higher than the annual growth rate for most of the region, where averages generally ranged from 1.0 to 2.0 percent for the same time period. Only Eastern Jackson County saw a higher growth rate for the period. Lee s Summit has done well to manage its growth and continue to provide a high quality of life and services for its residents. During the next 6 years, the growth rate is expected to slow to about 2.0 percent per year in Lee s Summit, but will remain above the Independence, Eastern Jackson County and metro area averages, which range from 0.5 percent to 1.4 percent. Only the Northland area is projected to grow faster, at 2.4 percent. The age distribution in Lee s Summit is consistent with its family-oriented resident base. About 30 percent of residents are under 20, which is the highest percentage for the region. An additional 31 percent of the population is in the 35 to 54 year range, compared to 29.0 percent of the Kansas City metro population, and only 27 percent of the population in Independence. About 58 percent of the population of Lee s Summit is working age, between 20 and 64, while nearly 12 percent are over 65. Independence has the largest retirement age population with 16 percent of residents over 65. The racial composition of Lee s Summit and Independence are much more similar to Johnson County and the Northland area than to that of the metro area, with whites comprising approximately 86 percent of the population. Only 3.9 percent of the residents in Lee s Summit are of Hispanic origin. Note that persons of Hispanic origin may be part of any race group. Historic and Projected Annual Population Growth % 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% Lee's Summit Eastern Jackson Kansas City MSA 0.0% Sources: Mid-America Regional Council; 1990, 2000 & 2010 Census; Lee's Summit Comprehensive plan. 20 Lee s Summit Economic Development Council: Lee s Summit Advantage

22 Population Population and Growth Characteristics City of City of Eastern Jackson Johnson Lee's Summit Independence County, MO Northland, MO County, KS Kansas City MSA Average Average Average Average Average Average Annual Annual Annual Annual Annual Annual Population Total Change Total Change Total Change Total Change Total Change Total Change , , , , ,054 1,511, , % 113, % 271, % 257, % 451, % 1,776, % , % 109, % 283, % 291, % 521, % 1,977, % , % 116, % 343, % 311, % 544, % 2,035, % , % 120, % 368, % 356, % 599, % 2,209, % % of % of % of % of % of % of By Age (2010) Total Total Total Total Total Total Total Total Total Total Total Total Under 20 27, % 29, % 97, % 86, % 154, % 570, % , % 22, % 65, % 61, % 107, % 405, % , % 31, % 96, % 92, % 159, % 579, % , % 14, % 39, % 36, % 63, % 235, % 65 & Over 10, % 18, % 44, % 34, % 59, % 243, % Median % of % of % of % of % of % of By Race (2010) Total Total Total Total Total Total Total Total Total Total Total Total White 78, % 100, % 283, % 272, % 468, % 1,596, % Black 7, % 6, % 35, % 16, % 23, % 254, % American Indian % % 1, % 1, % 2, % 10, % Asian 1, % 1, % 4, % 6, % 22, % 46, % Other 3, % 8, % 18, % 14, % 27, % 127, % Hispanic Origin 3, % 8, % 20, % 17, % 38, % 166, % Source: 1990, 2000 & 2010 Census; Claritas, Note: Northland includes Clay and Platte Counties. Eastern Jackson, MO includes the communities of Lee's Summit, Blue Springs, Grandview, Grain Valley, Independence, Sugar Creek, Raytown, Oak Grove and Greenwood. Lee s Summit Economic Development Council: Lee s Summit Advantage 21

23 Population Population Density 2010 Median Age 22 Lee s Summit Economic Development Council: Lee s Summit Advantage

24 Profile and Growth Trends With 34,429 households in 2010, Lee s Summit has grown by an average rate of 4.0 percent per year since This is a significantly higher rate than the metro area, which only grew by 0.9 percent; only Eastern Jackson county households grew faster. By comparison, the growth rate for Independence was 1.7 percent per year. As growth declines in the region as a whole, the projected annual growth rate in Lee s Summit will drop to 1.6 percent from 2010 to While the average household size in Lee s summit is the largest in the region, it continues to fluctuate, decreasing slightly from 2.70 in 2007 to 2.65 in Households 2010 and increasing to 2.71 by This trend of fluctuating household sizes is also reflected in the figures for the region and the metro area. Over time, Lee s Summit will continue to have household sizes considerably higher than Independence and the metro area. Larger household sizes are indicative of the younger families with children that Household Growth and Characteristics City of City of Eastern Jackson Johnson Lee's Summit Independence County, MO Northland, MO County, KS Kansas City MSA Average Average Average Average Average Average Annual Annual Annual Annual Annual Annual Households Total Change Total Change Total Change Total Change Total Change Total Change ,453 45,555 89,595 81, , , , % 47, % 106, % 101, % 174, % 694, % , % 46, % 111, % 116, % 202, % 779, % , % 48, % 134, % 123, % 212, % 799, % , % 51, % 145, % 140, % 231, % 869, % Population % % % % % % per Household Average Change Average Change Average Change Average Change Average Change Average Change % % % % % % % % % % % % % % % % % % % % % % % % Household % of % of % of % of % of % of Income (2011) Total Total Total Total Total Total Total Total Total Total Total Total < $25,000 3, % 12, % 25, % 18, % 22, % 162, % $25,000 - $49,999 6, % 16, % 38, % 33, % 46, % 225, % $50,000 - $74,999 7, % 10, % 29, % 28, % 45, % 176, % $75,000 - $99,999 5, % 4, % 18, % 19, % 34, % 111, % $100,000 to $150,000 6, % 3, % 16, % 16, % 37, % 102, % $150,000 or more 3, % 1, % 6, % 7, % 26, % 52, % Median $71,740 $43,002 $52,934 $57,990 $70,914 $53,901 Household % of % of % of % of % of % of by Type (2010) Total Total Total Total Total Total Total Total Total Total Total Total Married 20, % 20, % 66, % 64, % 119, % 392, % Children under 18 9, % 7, % 27, % 28, % 56, % 168, % No Children 10, % 13, % 38, % 36, % 62, % 223, % Male 4, % 9, % 21, % 20, % 29, % 135, % Children under % 1, % 3, % 3, % 4, % 19, % No Children 3, % 7, % 18, % 17, % 25, % 115, % Female 8, % 15, % 39, % 31, % 51, % 222, % Children under 18 2, % 3, % 11, % 8, % 11, % 59, % No Children 6, % 11, % 28, % 22, % 39, % 163, % Nonfamily 1, % 3, % 7, % 7, % 12, % 49, % Household % of % of % of % of % of % of Tenure (2010) Total Total Total Total Total Total Total Total Total Total Total Total Owner Occupied 26, % 32, % 93, % 85, % 150, % 540, % Renter Occupied 8, % 16, % 41, % 37, % 62, % 239, % Source: 1990, 2000 & 2010 Census; Claritas, Note: Northland includes Clay and Platte Counties. Eastern Jackson, MO includes the communities of Lee's Summit, Blue Springs, Grandview, Grain Valley, Independence, Sugar Creek, Raytown, Oak Grove and Greenwood. Lee s Summit Economic Development Council: Lee s Summit Advantage 23

25 Households have moved into Lee s Summit over the past 20 years. Household incomes in Lee s Summit are fairly evenly distributed with nearly 20 percent of the population in the $25,000 to $49,999 range and 22 percent in the $50,000 to $74,999 range. About 47 percent of households have incomes of $75,000 or higher, compared to only 20 percent in Independence. The median income in Lee s Summit is estimated at $71,740, which is the highest figure in the region. The city is very similar to Johnson County in terms of income distribution and median income. Northland area residents have a median income below Lee s Summit at $57,990, but significantly above Independence at $43,002. The majority of households in Lee s Summit are married couples (58 percent). An estimated 28 percent of these households have children under 18, while nearly 31 percent have no children living at home. Once again, Lee s Summit most closely resembles Johnson County in this regard. Independence, in contrast, has only 43 percent of households with married couples, of which roughly 15 percent have children under 18 living at home. At more than 76 percent, the proportion of owner occupied households in Lee s Summit is significantly greater than that found anywhere else in the region. At just under 66 percent, the proportion of home owners versus renters in Independence is the lowest in the area. Regional Median Household Income Lee s Summit Median Household Income 24 Lee s Summit Economic Development Council: Lee s Summit Advantage

26 Market Potential Lee s Summit s consumer market is characterized not only by sustained growth but also by a very attractive demographic makeup. Over 69 percent of the city s 34,429 households have incomes above $50,000. The average household income of $71,740 in Lee s Summit is nearly 25 percent above the metro area average for Kansas City. The city s well-educated, higher income population base results in significant buying power in the regional trade area. Aggregate annual spending by Lee s Summit households on items traditionally purchased locally equates to a market potential of over $1.8 billion per year. This includes items such as food and beverages, housekeeping supplies, apparel, transportation, medical care, entertainment and recreation, personal items and education. Annual Market Potential of Lee s Summit Households 2011 Aggregate Products and Services Spending (000's) Food & Beverages Food at Home $225,030 Food Away from Home $117,598 Alcoholic Beverages $45,793 Housekeeping Expenses Housekeeping Supplies $14,816 Telephone, Utilities & Fuels $164,751 Household Services $23,382 Repairs $20,470 Household Textiles $22,076 Furniture $31,494 Major Appliances $11,443 Small Appliances & Housewares $27,984 Misc. Household Equipment $22,372 Apparel Women's and Girls Apparel $67,801 Men's and Boys Apparel $42,948 Infant and Children's Apparel $4,898 Footwear $20,691 Other Apparel Products $31,978 Transportation New Cars & Trucks $134,019 Used Cars & Trucks $91,901 Boats & Recreational Vehicles $21,095 Gasoline & Motor Oil $94,334 Vehicle Maintenance & Repair $76,862 Medical Care Drugs $106,241 Medical Services $93,105 Medical Supplies $9,449 Entertainment & Recreation Sports & Recreation $73,326 Home Entertainment Equipment $29,883 Photographic Equipment $5,126 Personal Items Smoking Products $34,014 Personal Care Products & Services $43,918 Pet Expenses $24,004 Education Tuition and School Supplies $75,810 Reading Materials $20,117 Day Care $15,428 Source: Claritas, Lee s Summit Economic Development Council: Lee s Summit Advantage 25

27 Household Clusters Introduction This section summarizes the characteristics of Lee s Summit households as compared to neighboring communities and regions through the process of clustering. Household clustering involves analyzing and weighting many individual characteristics to define unique, yet inclusive, groups of households. There are 14 clusters based on degree of urbanization, socioeconomic status and general demographic characteristics. The purpose of these clusters is to segment the lifestyle variables that define neighborhoods and communities. These clusters are most valuable to retailers, health care providers and other personal service providers. They enable the identification of groups of people with common needs and resources. The household clusters presented in this profile were purchased from Claritas, a national vendor of demographic market data. Claritas has developed PRIZM clusters as part of its line of products aimed at retailers and other consumeroriented marketing. clusters. Only 6 percent are in the Rural and Small Town clusters. Eastern Jackson County is more evenly distributed with 46 percent of households in Suburban clusters and the remainder being either Second City (34 percent) or Rural and Small Town (20 percent). These same clusters are represented in the figures for the rest of the region, although the distributions vary. Distribution of Households by PRIZM Cluster Household Clusters in Lee s Summit and Comparative Areas The majority of Lee s Summit households, 47 percent, are in the Second City clusters. At 39 percent, the next largest group is in Rural and Small Town clusters. Within the Second City clusters, 21 percent of Lee s Summit residents fall into the Second City Society group, and 17 percent are in the Second City Centers cluster. Within the Rural and Small Town clusters, the majority of people (29 percent) comprise the Landed Gentry group. Similar to Lee s Summit, Independence is also concentrated in two cluster groups. The majority of Independence residents (68 percent) are in Suburban clusters, and nearly 26 percent fall into the Second City 26 Lee s Summit Economic Development Council: Lee s Summit Advantage