Peoria has a strong local workforce:
- Access to a large and growing labor force. The City’s 30-minute labor shed offers over 1.1 workers and the 45-minute labor shed offers over 1.6 million workers. The Wadley Donovan labor yield model shows that an office employer with a standard occupational profile could expect to staff up to 2,266 qualified employees in one year, while a standard manufacturer or distributer would be able to hire up to 2,179 qualified employees in one year.
- A rapidly growing labor force. The labor force available within Peoria’s labor shed grew almost three times the national rate between 2000 and 2009.
- No gaps between labor supply and demand. The employer survey conducted in 2010 reveals that the supply of labor is sufficient to meet the current demand for virtually all of the occupations included in the survey.
- Strong educational levels. The education levels of City residents are comparable to state and national averages and exceed levels seen in other communities in the Phoenix Metropolitan area. More than 39% of City residents have some post secondary education short of a four-year degree, which is significantly higher than the state and national averages. The percentages of residents with a four-year college degree in the labor sheds match the national average.
- A young workforce. At 36.6, the median age for the City’s commute zones is well below the national norm.
- A diversified occupational base. The occupational ratio of Peoria residents is well distributed across the 23 occupational groups identified by the U.S. Department of Labor, matching or exceeding the national average in more than half.
- Strong base of “high knowledge” occupations. Within the 23 major occupational groups, there are 11 that generally require a higher level of education and training. Peoria residents are employed in seven of these occupations at levels that exceed national norms, including engineering, computer and mathematics, finance, and health care practitioners and technicians.
- Strong basic skills. Employers in our survey report satisfactory to good basic skills within the workforce, and a strong work ethic and very good employee productivity.
- Modest labor costs. Relative to other major metro areas and other areas within the Phoenix metro area, salaries for entry-level and experienced workers are modest. Overall, average wages/salaries in Maricopa County are 3% below the national average.
This information can be found in greater detail in the Economic Development Implementation Strategy (EDIS) that was written by Wadley Donovan GrowthTech and adopted by the Peoria City Council in September 2010.
Also, view our Development Prospectus.
Leading Industries
Innovation
Peoria, Arizona is committed to developing an innovation hub in Phoenix’s West Valley. Since October 2011, the city has located a renewable technology firm, Maxwell Technologies, launched the state’s only medical device incubator, Bioinspire, and formalized a relationship with Trine University to establish a branch campus in Peoria that offers bachelor’s and master’s degrees in engineering, computer science, and business programs.
Retail Trade/Arts and Entertainment
Peoria has created a community with a very high quality of life, and as a result, retail and service offerings are very strong. The city has a thriving Entertainment District which is the most affluent and exciting 10-minute radius in the West Valley of the Phoenix metropolitan area. In that area, 29% of household incomes were over $100,000 annually.
The tremendous growth in the area over the last decade has fueled the need to expand retail services. Peoria has responded by targeting retail opportunities to meet the needs of residents and improve the community service offerings.
City Direct Investment
Provides direct city advance payment or reimbursement to private industry for a variety of capital or operating expenditures such as business relocation costs, worker relocation costs, tenant improvements, impact fee and permit fee waivers, etc. to attract both capital investment and high quality jobs in targeted industries and industries characterized by high wages and high knowledge-based occupations. For more information, please take a look at our Economic Development Incentive and Investment Policy.
Health Care
Peoria, Arizona has a strong employment base in healthcare and is home to the 185-acre Plaza del Rio healthcare campus, the largest off-hospital campus medical community in Arizona. The campus is unique, attracting and combining medical office facilities and seven different types of senior living facilities. This campus system allows seniors who are committed to health goals or facing medical challenges to live their lives in a setting that complements their needs and desires. Furthermore, physicians and other medical groups, such as Cardiac Solutions and neighboring Banner Sun Health Boswell Hospital, have easy access to both an extensive variety of medical services and a built-in market of patients.
The city is also home to one free-standing emergency department and a second is expected to open in the fall of 2012. Five full-service hospitals are within 15 minutes of any part of the city, and two more are currently being discussed.
Targeted Growth Industries
The city sees its future growth in higher education, advanced business services, manufacturing, bioscience/health care, and scientific and technical services.
There is a combination of factors that points toward the growth of these leading industries in Peoria:
- We have a large, technically-skilled workforce that currently employed in these industries elsewhere
- Peoria is only 30% developed, and therefore has a lot of room to grow
- The new Loop 303, opening April 2011, connects Interstate 10 to Interstate 17 and will provide unparalleled access to northern Peoria
Incentives and Financing
The city of Peoria adopted an Economic Development Incentive and Investment Policy that details how the city can invest in certain projects.
Foreign Trade Zone (federal program)
Peoria has two areas that can be designated as Foreign Trade Zones, Vistancia and Rovey Industrial Park, and the city has contracted with an FTZ consultant to handle the application process. In FTZs, merchandise can be brought duty-free into a designated Foreign Trade Zone (FTZ) for purposes of storing, repacking, display, assembly or manufacturing. Imports may be landed and stored without full customs formalities. Arizona is the only state that provides an 80 percent reduction in real and personal property taxes for companies qualifying for Foreign Trade Zone or sub-zone designation.
Peoria Industrial Development Authority Bonds
Development Authority issued bonds are conduit financing for an eligible project to assist a private developer or business in facility creation or expansion. Liability of the bonds is solely that of the developer or business. Conduit feature is used to obtain access to capital and competitive interest rates. City charges 1% fee for services provided and pays its costs from that fee. Other fees may apply. Issues for nonprofit entities may be charged a discounted fee and receive a discounted interest rate under the federal tax law, pursuant to IDA policy guidelines.
The state of Arizona through the Arizona Commerce Authority also has several programs to encourage business attraction to the state. Please go to www.azcommerce.com/BusAsst/Incentives for more information.
Transportation
Peoria is a highly accessible location, boasting very accessible transportation infrastructure and services that support current economic development, and planning that supports future development. The City is bisected by 4 state highways giving convenient access to Interstates 10 and 17 giving the City access within seven hours to multiple large and mid-sized metropolitan areas in the Southwest, California, Texas, the Mountain States, and Mexico.
The Loop 303, connecting I-10 to I-17, opened in May 2011 providing unparalleled access to the northwest Phoenix metropolitan area. This freeway runs 7 miles through Peoria’s northern region opening up the pristine landscape for commercial development as high wage employment.
Freight rail service is provided by the Atchison, Topeka & Santa Fe Railroad (a portion of the Burlington Northern Santa Fe Railroad system). The availability of rail-served sites affords Peoria with the opportunity to compete for industries needing rail service.
Taxes
Arizona relies on a combination of taxes assessed on income, sales and property valuations to meet expenditures. For thirteen consecutive years, Arizona has reduced taxes and passed legislation favorable to business. Some notable aspects of the tax code are:
- No Corporate Franchise Tax
- No Business Inventory Tax
- No Income Tax on dividends from out‐of‐state subsidiaries
- No Worldwide Unitary Tax
- Aggressive Accelerated Depreciation Schedules
- Virtually all Services Exempt from Sales Tax
- 100 percent of NOL may be carried forward for five subsequent years
Peoria Real and Personal Property Tax = $1.44 for $100 in assessed value
Primary City Rate $.19 for every $100 in assessed value
Secondary City Rate $1.25 for every $100 assessed value
Unemployment Insurance = 0.82% on first $7,000/employee = $57.40
For new companies, the rate is 2.7% for two calendar years, then is set by Arizona Department of Economic Security based on experience. The 0.82% is an average rate of all companies in Arizona.
Workers Compensation
Arizona annual composite worker costs are among the lowest in the nation. The National Council on Compensation Insurance determines coverage rates as endorsed by the Arizona Department of Insurance. Price is based on DOI‐approved schedule ratings or rate deviations and on the dividend performance of each carrier. Companies may choose from three methods to insure employees:
- Self‐insurance
- Private carrier policy
- State Fund
Transaction Privilege and Use Tax: 9.1% (6.6% State; 1.8% City; 0.7% County)
Corporate Income Tax: 6.986%
Utilities
The City of Peoria has an excellent utility system and public services. From an economic development perspective, Peoria is well planned and served with utilities and other public and private services. All utilities can support additional economic development in the near and mid-term future. Public water and sewer services in Peoria currently meet economic development needs for a wide-array of business types, with excellent planning of and investment in future capacity. The City has a demonstrated commitment to planning and funding infrastructure improvements. Additionally,
- Electric power availability and costs in Peoria support future economic development efforts.
- Availability of natural gas service at reasonable prices will support current and future economic development in Peoria.
- Telecommunications services are currently adequate, and in some cases redundant to support additional economic growth.
The City of Peoria also has a sound Water Resource Management Plan. Over the last decade, Peoria has focused its efforts on sustaining the current supply of groundwater by doing three things:
- Expanding capacity and technology for treating surface water, a renewable source of water. This water comes from CAP (the Colorado River) or SRP (Salt and Verde Rivers) and is treated at one of Peoria’s water treatment facilities.
- Building new water reclamation facilities and treating wastewater to class A standards. The newest facility, Butler Water Reclamation Facility, became operational in the summer of 2008, allowing the City an additional underground storage of 14,600 acre feet of water.
- Recharging reclaimed water into underground storage where it continues the hydrologic cycle before rejoining the aquifer.
In 2010, Peoria’s water came from the following sources:
- Central Arizona Project (CAP) Surface Water= 10,157 acre feet (38%)
- Salt River Project (SRP) Surface Water= 8,995 acre feet (33%)
- Recovered Well Water= 6,567 acre feet (24%)
- Effluent Directly Delivered= 1,378 acre feet (5%)
Total Water Supply= 27,097 acre feet
Peoria’s capacity to reclaim and recharge water earns the City long term storage credits because it recharges more water than it presently recovers, putting Peoria far ahead of the curve in water resource management.
