Border Communities Roadmap Status Update. TTCA Steering Committee August 29, 2013

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1 Border Communities Roadmap Status Update TTCA Steering Committee August 29, 2013

2 Roadmap Process Evolution June Arizona-Mexico Plenary Session January 2012 Border Communities Workshop January 2013 Governor Janice K. Brewer - Four Cornerstones of Reform January 2013 Roadmap Initiated

3 Roadmap Outcomes Strategic action steps with specific economic targets Identification of strategic investments Potential funding sources Responsibilities Menu of implementation next steps

4 Roadmap Work Program

5 Tasks Completed to Date Border Regional Assessment Full Day Site Visits Douglas, Nogales, San Luis, Somerton, and Yuma Asset Analysis Border Region Best Practice Research Calexico, CA; Santa Teresa, NM; El Paso, TX; Brownsville/Cameron, County, TX and McAllen, TX Vision and Strategic Framework

6 Border Economic Assets

of entry Expanded Mariposa POE Arizona s only rail crossing into Mexico Global

7 Nogales Assets Nogales, Sonora, Mexico approx. 250,000 population and 110 maquilas Proximity to Tucson 4 international ports of entry Expanded Mariposa POE Arizona s only rail crossing into Mexico Global business expertise Top 10 busiest cargo ports Half of all fresh produce entering U.S. Nogales International Airport

8 San Luis Assets San Luis Colorado, Sonora, Mexico over 200,000 population Population growth and growing Yuma region San Luis II POE capacity San Luis I POE improvements Heavy border activity Close proximity to Mexico beaches UofA involvement in Rolle Airfield Developable industrial land

9 Somerton Assets Solar energy development Cocopah Nation recreational development and large employer Growing Yuma region County agricultural industry

Yuma Assets Day truck haul from 50 million consumers Growing regional area Yuma International Airport Large military and defense industry State

10 Yuma Assets Day truck haul from 50 million consumers Growing regional area Yuma International Airport Large military and defense industry State universities and Arizona Western College Healthcare expansion Agriculture, value-added crops, and agribusiness Recreation and historic amenities

11 Substantial AZ Border Assets 6 international ports of entry Foreign trade zones in each County Rail connection with Mexico in Nogales 6 airports/several international designations Industrial parks and available land Active university and community colleges Expanding manufacturing in Sonora Thriving economic drivers Cross border commerce and activity Connections to produce industry Close proximity to major urban areas

12 Best Practice Research Approach Research Site visits Calexico, California Santa Teresa, New Mexico Texas - El Paso; Brownsville/Cameron County and McAllen Interviews

13 Calexico, California Collaboration with regional economic development University expansion in Mexicali offer workforce benefits Medical tourism Border wait times have dramatic impact

Co-locating state agency staff on border Largest cattle

14 Santa Teresa, New Mexico State commitment to border trade growth State strategic investment Border industrial park Co-locating state agency staff on border Largest cattle crossing in the world Intermodal facility Available private land

15 El Paso, Texas Federal Reserve Bank U.S.-Mexico cities viewed as one market area Up to date data Private sector driven Unified strategic communications Alignment with Mexico s economy rather than U.S. One City, Two Mayors attitude

16 Brownsville/Cameron County, Texas Transportation improvements drive economic development POE toll bridges generate substantial revenues Texas funding mechanisms Arizona does not have

Consensus on Advanced Manufacturing International MSA Dependent on

17 McAllen, Texas City owned EB-5 Private sector driven Focus on business recruiting to Mexico Evolution of maquilidoras Education attainment Consensus on Advanced Manufacturing International MSA Dependent on Mexican shoppers and visitors Sustainable funding source for economic development

18 Best Practices Observations Myth about Texas border vision alignment Larger Texas border communities Large private landowners along border Broader range of financing mechanisms available to county and local communities (TIRZ and TRZ) POE toll bridges generate large revenues Confirmed actively recruiting Arizona produce to come through Texas POE Strong recognition of and connection to border economics Common U.S. border issues

19 Big Ideas/Lessons Learned Recognition of the border s importance to the state U.S.-Mexico business recruitment strategy International MSA Closer relationship with Federal Reserve Bank New Mexico Border Authority Maquiladoras impact on border cities

20 Big Ideas/Lessons Learned Importance of regional collaboration Interstate highway designation Efficient multimodal transportation network Seamless flow of commerce and people Private sector driven Relationship building corporate and in Mexico City

21 Strategic Framework Organization Economic Development Defined Asset Common Themes Border Economic Vision Focus Areas Goals Best Practices Lessons Learned (use to develop strategies)

22 Economic Development Defined The process of creating, attracting, and retaining wealth by mobilizing human, financial, physical, and natural resources (or assets) to produce marketable goods and services.

23 Asset Common Themes International Gateway Foreign Trade Zones Strategic Location Image Development Infrastructure Economic Development Tourism Destination International Talent Higher Education

24 Border Economic Vision Vision Defined ideal picture of a future condition that can be achieved through focused action The Border Region is Arizona s Gateway to global opportunities leading the way to economic diversification, innovation, strategic investment, and quality community building.

25 Focus Areas 1. Improve the image and communicate the economic impact to Arizona of an economically-strong border region. 2. Recognize and expand Arizona s border region s economic viability and impact to the state s economy. 3. Expand and strengthen relationships that drive Arizona s economic initiatives.

26 Focus Areas Continued 4. Build border infrastructure to enhance Arizona s global competiveness and connectivity, address border region economic development goals, and ensure a return on investment. 5. Develop and communicate a strong business case for border region economic investment.

27 Targeted Industry Sectors 1. Logistics & Distribution 2. Agribusiness 3. Maquila/Manufacturing 4. Medical/Biomedical 5. Aerospace & Defense 6. Renewable Energy 7. Tourism, Retail, & Hospitality

28 Next Steps Draft Border Communities Roadmap review and input by communities Mid September 2013 Completion of Border Communities Roadmap October 2013

29 PRESENTATION CONTACT PEGGY FIANDACA, PRESIDENT PARTNERS FOR STRATEGIC ACTION, INC

MEXICO U.S. BORDER INFRASTRUCTURE

MEXICO U.S. BORDER INFRASTRUCTURE Sean Carlos Cázares Ahearne Deputy Director General for Border Affairs Mexico s Ministry of Foreign Affairs (SRE) Future of North American Infrastructure North American