Overview Introduction Executive Summary... 3 People... 3 Prosperity... 7 Place... 12

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3 LIVE WORK GROW Market Street brings original insights and clarity to the evaluation and revitalization of the places where people live, work, and grow. Through honest and informed assessments, Market Street can equip you with the tools to create meaningful change. Our solutions successfully merge our experience and expertise with the economic and social realities of our clients. Market Street s community clients are successful at creating stronger programs, increasing operational budgets, and creating new quality jobs that improve the quality of life in their communities.

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5 TABLE OF CONTENTS Overview... 1 Introduction... 2 Executive Summary... 3 People... 3 Prosperity... 7 Place Geographies Data Sources Location Quotients Community Input People Population Growth Age Distribution Diversity Educational Attainment Household Income Poverty Education Prosperity Employment Unemployment Labor Force Participation Business Sector Composition Business Costs Place Community Assets Long-Term Vision Cost of Living Housing Public Safety Infrastructure and Commuting Conclusion...71 Appendix: Online Survey Results October 2010

6 OVERVIEW The city of Alpharetta contracted with Market Street Services, a national community and economic development consulting firm headquartered in Atlanta, to facilitate an economic development planning process over the next six months. This Competitive Snapshot provides a qualitative and quantitative analysis of Alpharetta s competitiveness as a place to live for current and relocating residents, and as a place to conduct business for existing, expanding, and prospective businesses. Research is organized and presented according to three broad components of community: People, Prosperity, and Place. The performance of Alpharetta is compared to three similar communities that might compete with the city for workers and jobs: Sandy Springs, Georgia; Cary, North Carolina (located outside of Raleigh); and Round Rock, Texas (located outside of Austin). Stakeholder input gathered from focus groups, interviews, and an online survey will supplement the quantitative analysis and provide a more holistic view of Alpharetta s competitive realities. The results of this analysis and the stakeholder input will be the basis of Market Street s work as the project proceeds to the three remaining stages, as outlined below: Target Business Review: This deliverable will blend quantitative and qualitative research to produce a short list of clearly defined target sectors and the opportunities and challenges involved in effectively growing them. Additionally, Market Street s partner, Buxton Company, will provide a retail analysis to include trade area data, a retail sales leakage and surplus assessment, and consumer propensity by retail subsector. This will enable stakeholders to more fully understand the city s changing retail dynamics.. Economic Development Plan: This Plan will represent the culmination of all research completed and will present action items geared toward addressing challenges and capitalizing on opportunities for visionary growth. This Economic Development Plan will serve as a tool to unify Alpharetta s leadership behind a blueprint for the community s future economic development activities. Implementation Guidelines: The Plan represents what Alpharetta needs to do to achieve its preferred future, while the Implementation Guidelines determine how that will be done. This report will include action plans for years one through five, organizational and structural realignment recommendations, and benchmarks and performance measures for tracking progress during implementation. October

7 INTRODUCTION The United States, and every community within it, is facing economic challenges not seen since the Great Depression. Clearly, the best-laid plans of just a few years ago are not sufficient for the changed economy. This broad and deep downturn has affected every business sector, and only health care recorded positive job growth in Local, regional, and national economies have changed radically in recent years as the Great Recession has significantly altered the competitive landscape for communities and their leadership. Over the past few decades, Alpharetta has grown dramatically from its rural roots to become a bustling residential and commercial destination of choice. Throughout 1990 s, Alpharetta s population growth underpinned its economic growth; between 1990 and 2000, the city grew by almost 170 percent. While population growth slowed in the last decade it remained comparatively robust, and employment and business development opportunities continued to grow well into the first decade of the new millennium. High-wage sectors, such as information and professional services, grew alongside retail development that contributed to the city s quality of life amenities. The city today is supplied with an abundant stock of executive-level housing and an enviable base of high-wage employment. However, by the end of 2009, Alpharetta s labor market had seen noteworthy decline. Although Alpharetta makes up only 9.6 percent of Fulton County s total employment, it was home to 27.8 percent of county job losses due to layoffs and closures in Job losses in Alpharetta alone comprised 10.2 percent of the tencounty metro region s total in There have been three significant additional layoffs or closures already in 2010, with 310 jobs lost. Despite announcements of business relocations and expansions to Alpharetta last year, the city was named bank failure capital of the U.S. by the Wall Street Journal. At the same time, the city was also ranked #1 on Forbes annual list of the Best Places to Move in the United States. In light of the chastened economic environment, this will evaluate anew Alpharetta s strengths, weaknesses, opportunities, and challenges against several peer communities and the broader economies within which it operates. The result is a research document clearly drawing out those characteristics and trends that must be confronted for the community to rebuild its prior economic momentum. The findings of this report and subsequent research will ultimately inform the development of a new strategic plan to guide the community forward and build a more prosperous future for its residents. October

8 EXECUTIVE SUMMARY This provides a review of a variety of trends in the city of Alpharetta as compared to the cities of Cary, NC; Round Rock, TX; and Sandy Springs, GA, as well the state of Georgia and the United States. It will provide a quantitative and qualitative analysis of Alpharetta s competitiveness as a place to live for current and relocating residents, and as a place to conduct business for existing, expanding, and prospective businesses. This Snapshot is organized into three sections according to the principal factors that together determine the competitiveness of Alpharetta as a setting to live and do business: People, Prosperity, and Place. Throughout this executive summary, symbols are used to denote positive, negative, and neutral trends across the City of Alpharetta. The green icon with a plus sign indicates positive trends The orange icon with an equals sign indicates neutral trends The red icon with a minus sign indicates negative trends People It is critical that all project stakeholders embark on Alpharetta s ten-year strategic process with a shared understanding of community dynamics and recent trends that can influence policy decisions. Assessing how the city of Alpharetta s population is growing and changing is the first step towards understanding its recent past and clarifying its future opportunities and challenges. This section analyzes the growth and well-being of the community in terms of demographics, socioeconomics, and education dynamics. The chart at the end of this subsection shows Alpharetta s performance compared to its peer communities, the state and the nation for key indicators related to the community s greatest asset: its people. The city of Alpharetta experienced tremendous population growth in recent decades, booming from an exurban community that was largely residential and undeveloped in the 1970s to a city with more than 50,000 residents. Alpharetta has experienced rapid rates of growth and the city s long-range plans still account for considerable additional population growth. The city s relatively young and increasingly diverse population is a clear asset for the community moving forward. Between 1990 and 2000, the city of Alpharetta added nearly 22,000 new residents, equivalent to 168 percent growth. This rate of growth outpaced the rates experienced in Cary (116 percent), Round Rock (98 percent) and Sandy Springs (26 percent), and far outpaced the national growth rate (13 percent). Since 2000, population growth in Alpharetta has been steady but more modest than in the 1990s. The October

9 city added 16,715 new residents between 2000 and 2009, equivalent to 48 percent population growth. Only Round Rock, Texas experienced a higher rate of growth in the 2000s, driven by the allure of the Austin metropolitan area and the rapid expansion of employment opportunities within the metro. Alpharetta diversified rapidly during the last decade, with minorities increasing their share of total population from 20.8 percent in 2000 to 34.5 percent in Many communities find that population diversity can provide good opportunities to enhance local cultural attractiveness and economic vitality. Similarly, employers often find that communities lacking population diversity can inhibit their ability to attract the best and brightest to their companies. Alpharetta will benefit greatly from its relatively young population in the years ahead. As of this year, the city has a lower share of its population between the ages of 45 and 64 (25.3 percent) than the national average (25.9 percent) and its Metro Atlanta competitor, Sandy Springs (28.1 percent). This demographic will be approaching retirement age in the coming decade, and communities with a relatively small share of residents between the ages of 45 and 64 will be less susceptible to impending demographic shifts in the workforce as the Baby Boom generation retires. Most importantly, Alpharetta s share of the total population between the ages of 25 and 44 is the largest among all three comparison communities, the state, and the nation. This strong pipeline of younger residents will help to reduce the susceptibility of the city s workforce to the aforementioned impending retirement of the Baby Boom generation. The city of Alpharetta also benefits tremendously from an incredibly well-educated population. Educational attainment is an important indicator of socioeconomic wellbeing and earning potential. It also is one of the key determinants of a workforce s competitiveness and the ability of a community to develop and attract high-skilled, high-wage employment. As of this year, 59.5 percent of the city s adult population (ages 25 and older) possessed a bachelor s degree or higher. By comparison, only 27.9 percent of the nation s population and 27.5 of the state s population possesses a bachelor s degree or higher. Two of the city s comparison communities, Sandy Springs and Cary, also possessed extremely well-educated populations with more than 60 percent of their adult populations possessing a bachelor s degree or higher. This indicates that both communities compete very strongly with Alpharetta from the standpoint of workforce preparedness in an increasingly knowledge-intensive economy. October

10 Only 4.3 percent of Alpharetta s adult population did not posses a high school diploma, lower than all comparisons and more than ten percentage points below the national average (14.8 percent). Alpharetta benefits from strong state workforce development resources, which are a best practice model in economic development, and provide support for workers trying to enhance their skill sets or advance their education. With such a well-educated population and given the well-documented impact of education on lifetime earnings potential, it is no surprise that Alpharetta s resident population earns considerably higher incomes than the national average. According to the Census Bureau s American Community Survey three-year estimates spanning 2006 to 2008, Alpharetta s median household income was $98,535. This was nearly double the national average ($52,175) and more than $9,000 higher than the next highestearning median household out the three comparison communities (Cary, at $89,053). The median household income in Alpharetta was nearly $24,000 higher than its Metro Atlanta competitor, Sandy Springs ($74,581). During the same three-year period, only 6.7 percent of Alpharetta s households earned less than $25,000 per year, a smaller percentage than all comparisons, and considerably lower than the national average (23.2 percent). This translates to an extremely low poverty rate in the city, with only 3.8 percent of the population falling below the poverty thresholds, lower than all comparison communities and 9.6 percentage points lower than the national poverty rate (13.2 percent). Additionally, median household incomes in Alpharetta grew faster between 2000 and the period than any comparison community, the state, or the nation. This contributed to an unusual but very positive finding: poverty rates actually declined in Alpharetta between 2000 and the period, whereas poverty increased in all comparison communities, the state, and the nation. The city s residents benefit greatly from strong public schools that consistently rate among some of the best schools in the state of Georgia. High quality public schools are attractive to both existing and potential residents, but, equally important, are also an important factor in the location decisions of firms that understand employees want to have access to the best public education possible for their children. Graduation rates at the city s two largest high schools, Alpharetta and Milton High School, were 92.8 percent and 97.1 percent, respectively, during the 2008 academic year. This far exceeded the statewide graduation rate of 75.4 percent. Student performance on key end-of- October

11 course subject tests has historically been well above the statewide average at Alpharetta High School, Milton High School, and Teach Charter High School. Input participants in Alpharetta repeatedly cited the quality of the city s public schools as one of the top strengths and selling points of the community, and emphasized that the quality of its schools must be preserved to ensure that it remains competitive for new employers and families, and continues to benefit future generations. Note: A ranking of 1 represents the most competitive position. A ranking of 6 represents the least competitive position. October

12 Prosperity This section will present and explicate key trends in a variety of economic indicators, including those related to employment, business sector dynamics, tax environment, and business costs. Each of these indicators contributes to a broad understanding of the community s ability to generate employment and wealth, or Prosperity. By examining Alpharetta s competitive position against the selected benchmark communities, the city s economic strengths will be highlighted and its challenges revealed. A breakdown of employment and relative concentration by sector will provide a first look at the city s business sector composition, a topic that will be further explored in the forthcoming Target Business Review. The chart at the end of this subsection shows Alpharetta s performance compared to its peer communities, the state, and the nation for key indicators related to the community s economic prosperity. Employment in Alpharetta can be understood in two dimensions: resident employment and total jobs. Resident employment refers to the employment status of the resident population, regardless of where the jobs are located. Total jobs refers to the number of jobs within city boundaries, regardless of employees place of residence. Alpharetta experienced modest growth in resident employment in the early half of the past decade but experienced much stronger growth from 2004 to The recent recession has hit Alpharetta hard, with relatively large declines in resident employment (the employment status of those residing within the city) as compared to the state, and the nation. However, while resident employment has been hit hard during the recession, there are still considerably more jobs than working-age residents in Alpharetta. As of 2010, the number of jobs within Alpharetta s city limits (50,874) is 55 percent higher than the size of its resident working-age population (32,838). This implies that the city is a large net importer of employees from other parts of Metro Atlanta. Sandy Springs is also a relatively large net importer of employees from outside the community with the number of jobs exceeding the working-age resident population by 38 percent. However, both Cary and Round Rock have working-age populations that exceed the number of jobs, indicating that they are more traditional suburban bedroom communities than true job centers like Alpharetta and Sandy Springs. Resident employment grew by more than 6,000 in Alpharetta from 2000 until the onset of the most recent recession, with much of this growth occurring in 2005 and This was equivalent to a 31.2 percent growth rate, far outpacing national and statewide growth, and exceeded only by the rapid growth of Round Rock. October

13 Since the national recession began in December 2007, resident employment in Alpharetta has declined by 2,746, equivalent to a 10.3 percent decline. This rate of decline was exceeded slightly by Sandy Springs (11.2 percent decline) but was larger than the national and statewide rates of employment loss. Cary began to recover rapidly from the most recent recession beginning in January 2010, nearly recouping all employment losses experienced in the previous two years. The Round Rock economy has been extraordinarily resilient to recent recessions, actually exhibiting employment growth during the 2001 and most recent recession. Although Alpharetta makes up only 9.6 percent of Fulton County s total employment, it was home to 27.8 percent of county job losses due to layoffs and closures in Job losses associated with layoffs and closures in Alpharetta comprised 10.2 percent of the ten-county metro region s total in Data covering January to September of 2010 show that there have been three significant layoffs or closures in Alpharetta resulting in a loss of 310 jobs. This represents 10.7 percent of the 10-county metro total year-to-date, and 17.7 percent of closure or significant layoff-related losses in Fulton County. Although the recession has taken a toll locally as well as nationwide, the city has benefitted from a well-engaged workforce as exhibited by its high labor force participation rates and historically low unemployment rates. In June 2000, only two percent of the city s labor force was reported to be unemployed, roughly two percentage below the national (4.1 percent) and statewide (3.9 percent) rates. This was comparable to the unemployment rates experienced in Cary and Sandy Springs, but lower than the rate observed in Round Rock at the beginning of the decade. Unemployment stood at 3.7 percent in Alpharetta in December 2007, at the onset of the most recent recession. Between December 2007 and June 2010, unemployment increased 4.4 percentage points in Alpharetta to 8.1 percent. This was slightly lower than the increase experienced in Sandy Springs (4.6 percentage points), but was larger than the increase experienced in Cary and Round Rock, both of which are contained within metropolitan areas with labor markets that were not as heavily affected by the national recession as Metro Atlanta. Although not faring as well as two its primary competitors, the city s unemployment rate remained below the national and state averages in June The labor force participation rate (LFPR) measures the percentage of the working age population (ages 18 69) that is either employed or unemployed. Throughout the 1980s and 1990s, labor force participation rates increased steadily across the United States, driven October

14 in part by the influx of women and minorities entering the workforce. Female labor participation rates have stabilized in the 21 st century, and the nation is currently facing a new trend: the beginning stages of the retirement of the Baby Boom generation, those 55 and older. Consistent with national trends, Alpharetta, Cary, Round Rock, and the state of Georgia experienced a decline in labor force participation over the course of the 2000s. However, the most recent recession has likely partially interrupted this downward trend as some individuals have chosen (and in many cases had little choice) to delay retirement. Despite recent declines, nearly 80 percent of Alpharetta s working age population remained actively engaged in the labor force (LFPR = 79.9 percent) in early With such strong labor force participation Alpharetta is likely to continue to experience strong household wealth accumulation as compared to the nation (LFPR = 74.9 percent). Alpharetta has benefited tremendously from major infrastructural investments made in previous decades, including the development of multiple business parks with strong telecommunications and fiber optic infrastructure. Coupled with the city s comparatively well-educated population and the relative desirability of Metro Atlanta as a place to do business, these investments attracted multiple regional headquarters and other operations of high-technology and Fortune 500 companies to Alpharetta. Many of these firms are classified within the information sector, which encompasses information technology, telecommunications, data processing, and internet service providers, among other subsectors. Employment in the information sector has swelled to over 7,000 jobs in 2010, producing a location quotient of This captures the employment contained within many of the city s largest employers, including McKesson, Verizon, AT&T, LexisNexis, and Oracle, among others. Many of the city s other major employers including ADP and certain business units of McKesson, Siemens, UPS Supply Chain Solution, and Ryder Shared Services are classified as professional and technical services. There are more than 4,400 individuals employed in this relatively high-wage sector in Alpharetta, representing 8.9 percent of all jobs in the city, as compared to 5.7 percent nationwide (LQ = 1.56). The city is also home to a vibrant retail environment, employing more than 10,000 individuals, representing just over 20 percent of all jobs in the city. North Point Mall and surrounding shopping areas, as well as the Windward Parkway retail area are major draws for residents from surrounding North Fulton and Forsyth County communities. This influx of retail expenditures from surrounding areas provides a healthy boost to the city s tax base. October

15 Although a number of factors related to a community s workforce are rising to the top of site considerations, overall tax climate consistently ranks high on companies priority location concerns. Communities with non-competitive tax structures risk driving away prospective companies and those that are already located in the area. Georgia s tax climate is relatively low and quite competitive with the rest of the nation, with comparably low corporate income tax rates but slightly higher property tax rates than the national average. Local tax rates, including property taxes, and various fees, including development impact fees, are slightly higher than surrounding communities in North Fulton but much lower than major urban areas across the nation. The city of Alpharetta has the highest property tax millage rate (5.75 mills) out of all North Fulton communities, with the exception of Mountain Park (11.78 mills). Neighboring Roswell (5.455 mills), Johns Creek (4.614 mills) and Sandy Springs (4.731 mills) all have slightly lower millage rates. The city of Alpharetta also imposes three different types of development impact fees, collected for public safety, roads, and parks and recreation. Sandy Springs and Roswell also collect development impact fees for the same three categories. Fee schedules vary by size and type of development, and although rate schedules differ, they are generally comparable in size. Although development impact fees remain in place, Sandy Springs adopted a resolution in February 2010 to reduce all other fees collected by the Community Development department by 50 percent for a period of one year. This reduction is intended to help jump-start development in Sandy Springs, and may incentivize developers who are examining a variety of North Fulton locations to choose Sandy Springs over other North Fulton communities, including Alpharetta. Throughout the community input process, Market Street staff received many conflicting opinions about tangible and intangible business costs in Alpharetta. Most business owners felt that the city s taxes and impact fees were not prohibitive to development and were competitive with other North Fulton communities. However, many of the same aforementioned business owners felt that the permitting process in Alpharetta could be cumbersome and difficult to navigate. A full discussion with many other important observations from community input participants with regards to tangible and intangible business costs can be found in the section covering business costs in the full Snapshot that follows this Executive Summary. October

16 Note: A ranking of 1 represents the most competitive position. A ranking of 6 represents the least competitive position. T beside rank indicates a tie between multiple geographies. October

17 Place Alpharetta s quality of place has been a key factor in the city s residential and economic growth over the last two decades. Attractive housing options, quality schools, safe neighborhoods, and proximity to metro Atlanta amenities helped Alpharetta attract families and businesses. While the Great Recession put downward pressure on an otherwise mobile workforce and business community, the long-term implications of quality of place remain unchanged. As the nation slowly moves into full economic recovery, workers and businesses will continue to vote with their feet (as economist Charles Tiebout has said) by choosing to locate in communities with the most attractive bundle of amenities to suit their needs. As such, the continued development of Alpharetta s community product is inextricably tied to its economic development success. This section examines some of the concepts associated with Alpharetta s quality of place including cost of living, housing options, infrastructure and commuting, and public safety and their implications for its competitiveness as a place to live, work, and grow. The chart at the end of this subsection shows Alpharetta s performance compared to its peer communities, the state, and the nation for key indicators related to quality of place. It should be noted, however, that quality of place is ultimately understood in the eye of the beholder, and can mean very different things to different people. Alpharetta s strong community assets have helped to its reputation as a familyfriendly community. In July 2009, Forbes.com ranked Alpharetta #1 on the Best Places to Move list. All of the comparison communities examined in this report also landed on the list: Cary ranked 8 th, Sandy Springs ranked 15 th, and Round Rock came in at 24 th place. Community input participants were generally very pleased with the amenities available to individuals and families within the city. The Verizon Wireless Amphitheatre was frequently mentioned as a very welcome addition, and residents often cited the quality of the city s parks and recreation facilities as a key strength of the community. Many also indicated that they would like to see these facilities maintained in the years ahead to ensure that future generations have the same access. However, some participants lamented the absence of a more active nightlife in Alpharetta that would appeal to young professionals, and noted that there is no locus of entertainment activity. Some mentioned that restrictive alcohol policies contribute to the relative lack of bars and nightclubs in the city. October

18 Overall cost of living in Metro Atlanta is below the national average and competitive with the cost of living observed in the Raleigh-Cary, North Carolina and Austin- Round Rock, Texas metropolitan areas. The Council for Community and Economic Research s (C 2 ER) Cost of Living Index scores the Atlanta-Sandy Springs-Marietta metropolitan area at 96.0, where a value of 100 represents the national average. This fell between the cost of living index values for the Raleigh-Cary and Austin-Rock metropolitan areas. For a community to be economically competitive, it must have housing that is both affordable and attractive to its workforce. Because communities have workers of all pay scales, it is important to have housing options to suit the needs of all types of workers, families, and individuals. Averaged over the three-year period spanning , Alpharetta boasted a higher rate of homeownership (69.3 percent) than Sandy Springs (54.8 percent), Round Rock (64.1 percent), the state (67.8 percent), and the nation (67.1 percent). Across all four zip codes that are partially or wholly contained within Alpharetta, one in every 371 homes received a foreclosure filing in August Meanwhile, only one in every 1,807 units received a foreclosure filing in Cary in August 2010; yet, in Round Rock, one in every 297 units received a foreclosure filing (data was not available for Sandy Springs). To provide additional context within North Fulton County, one in every 393 units in Roswell received a foreclosure filing in August 2010, roughly equivalent to the rate observed in Alpharetta. Alpharetta experienced strong appreciation in home values from 2000 to 2008, with the median home value rising 50 percent from $226,300 to $340,500, outpacing the rate of appreciation in all three comparison communities. Such strong appreciation provides elevated equity for homeowners, but also affects affordability for potential future homeowners. Compared to Metro Atlanta s median sale price in July 2010 ($141,300), Alpharetta ($295,000) is much less affordable for younger and lower-income populations. The aforementioned median sale price for single-family homes in Alpharetta in July 2010 ($295,000) was 13.1 percent lower than the median list price ($339,900) during the same month. This rate of loss at the median (the percentage difference between the median sale price and the median list price) was higher than the rates of loss on July home sales in the Sandy Springs and Cary markets, where sellers experienced losses of only 2.6 percent and 3.6 percent, respectively. October

19 In July 2010, 30.3 percent of all home sold in Alpharetta were sold for a loss. This level exceeded the percentage of homes sold for a loss in both the Cary and Sandy Springs markets (data was not available for Round Rock). The percentage of homes sold for a loss in Alpharetta has risen consistently since May 2007, when only 5.9 percent of homes were sold for a loss. While it is a difficult blow for homeowners to absorb during difficult economic times, these are corrections in the market that will help bring housing prices better in line with current market demand. According to the Census Bureau s three-year estimates spanning , nearly 31 percent of Alpharetta s housing stock is multifamily units. This is a relatively large share compared to the Cary and Round Rock markets, as well as the national average. This is a somewhat surprising finding given that community input participants indicated that many residents seem opposed to multifamily development in Alpharetta. Some participants noted that they would like to see more apartments and condos developed at price points that are affordable to young professionals and recent college graduates that may be employed in Alpharetta. However, others emphasized that they would like to see the community maintain the charm that they associate with the city s predominantly single-family residential areas. According to the Census Bureau, the median rent in Alpharetta is $893, a figure higher than all of the geographies examined. However, for local renters this is fairly affordable. Between 2006 and 2008, only 28 percent of renters paid more than 30 percent of household income on rent, representing a smaller proportion than all comparison communities, the state, and the nation. One of the most important factors contributing to the attractiveness of a community for existing and potential residents is public safety. Community input participants felt that the city is a very safe place to live and many praised their local police and fire departments. In 2009, Alpharetta had a higher incidence of property crime than Cary and Round Rock but lower than Sandy Springs and the statewide average. The city s rate of property crime was slightly higher than the national rate in This rate was driven by a relatively high incidence of larceny-theft. Although the city possessed a slightly higher rate of property crime, it had no murders or cases of non-negligent manslaughter in 2009 and had rates of other forms of violent crime that were considerably lower than the national and state averages. October

20 Thankfully, property crime is on the decline in Alpharetta, with the city experiencing a 12.9 percent reduction in the total number of reported incidents of property crime between 2007 and Further, the city experienced a 65.1 percent reduction in the number of reported violent crime during the same period, far exceeding the reductions experienced in the comparison communities, the state, and the nation (Round Rock actually experienced an increase in violent crime during the period). The quality and connectivity of a region s road, rail, and air networks are critical to its ability to attract and retain residents and business. Metro Atlanta has strong interstate network connectivity and is home to the world s busiest airport, significantly impacting the region s attractiveness to businesses. However, many residents complained about congestion in and around Alpharetta, and traffic was cited by online survey participants as the single greatest challenge threatening Alpharetta s future competitiveness. The city of Alpharetta has comparatively weak connections to metro transit providers, as measured against other communities in North Fulton that lie closer to MARTA rail connections. However, the city has worked well with MARTA to accommodate commuters by establishing three park and ride lots and three primary MARTA bus routes that run along primary corridors. Sandy Springs benefits from the presence of MARTA Red Line rail stop. Round Rock is currently planning for the development of commuter rail that will connect the city to nearby Austin. With traffic congestion cited as the biggest threat to future competitiveness by participants of the community input process, enhancing the city s connections to and use of public transit will be critical. According to the Census Bureau, 62.4 percent of Alpharetta residents had a commute time of 30 minutes of less during the three-year period spanning , a smaller proportion than Round Rock (65 percent), Sand Springs (67.5 percent), and Cary (72.4 percent). Nearly one in five residents (19.6 percent) has a commute of at least 45 minutes, a larger share than all three comparison communities. This is likely just as indicative of Alpharetta s desirability as a place of residence for individuals working in the urban core of Atlanta as it is indicative of congestion impacts on travel time. Input participants noted that Alpharetta has pressing traffic issues, but also highlighted some distinct advantages over other North Fulton communities. Traffic congestion is particularly onerous during the school year, but is present during the morning and evening commutes year-round. East-west connectivity was noted as being particularly problematic. Participants emphasized the importance of completing Westside Parkway, noting that it would be the single-most important transportation development in Alpharetta for many years to October

21 come. While traffic is a common complaint in Alpharetta, input participants were quick to point out the development and access benefits provided by having four GA-400 exits in Alpharetta. Broadband infrastructure is critical to a community s overall competitiveness, especially for those that wish to retain existing and attract new high-technology companies. According to Speed Matters, in 2009 the average download speed for the nation was 5,222 kilobytes (kbps) per second and the average upload speed was 1,126 kbps. Alpharetta s infrastructure facilitates download speeds of 8,436 kbps and upload speeds of 1,490 kbps, surpassing the Cary and Round Rock communities and just slightly trailing the speed observed in Sandy Springs. A few community input participants mentioned the strength of the city s broadband and telecommunications infrastructure, with an emphasis on early investments that catalyzed the city s historical development and continued ability to attract high-technology and regional headquarters operations. October

22 Note: A ranking of 1 represents the most competitive position. A ranking of 6 represents the least competitive position. October

23 COMPETITIVE SNAPSHOT This provides a review of a variety of trends in the city of Alpharetta as compared to the cities of Cary, NC; Round Rock, TX; and Sandy Springs, GA, as well the state of Georgia and the United States. It will provide a quantitative and qualitative analysis of Alpharetta s competitiveness as a place to live for current and relocating residents, and as a place to conduct business for existing, expanding, and prospective businesses. This Snapshot is organized into three sections according to the principal factors that together determine the competitiveness of Alpharetta as a setting to live and do business: People, Prosperity, and Place. This introductory section provides important background information on the geographies examined, data sources leveraged, and details on particular methodologies used in the research and data analysis of the Competitive Assessment. GEOGRAPHIES For most indicators, the city of Alpharetta is compared to three communities identified by Market Street staff and the City of Alpharetta s Community Development Department at communities that compete with Alpharetta for workers and employers. The three identified comparison communities are: Cary, North Carolina a component of the Raleigh-Cary metropolitan area located in the Research Triangle Round Rock, Texas a component of the Austin-Round Rock metropolitan area Sandy Springs, Georgia a competing community within the Atlanta-Sandy Springs-Marietta metropolitan area These communities were carefully selected for their demographic, socioeconomic, and economic similarities to the Alpharetta region, as well as their established statuses as desirable locations to live, work, and do business. DATA SOURCES Market Street makes every attempt to use the most reliable and recent data available from predominantly publicly-available sources. However, reputable and reliable proprietary data sources must be used when data is not available from public sources. Primary public data sources include the U.S. Census Bureau, the U.S. Bureau of Labor Statistics (BLS), the U.S. Department of Justice, the Energy Information Administration, the Bureau of Transportation Statistics, and the National Center for Education Statistics. Various state departments were also used as sources for statelevel information covering education, transportation, and business costs. October

24 This report heavily leverages the Census Bureau s American Community Survey (ACS) to provide information on a variety of indicators. The ACS provides annual estimates of demographic and socioeconomic information for communities with population greater than 65,000 residents. As a result, annual estimates from the ACS are not available for the city of Alpharetta, which is home to roughly 52,000 residents. For geographies between 20,000 and 65,000 residents, the Census Bureau produces demographic and socioeconomic estimates covering a three-year period of time. The most recent three-year estimates cover the period spanning Estimates covering the period will be released by the Census Bureau in December When reliable and current data is not available from public sources, or publiclyavailable information is outdated, Market Street utilizes reliable proprietary sources. This is often necessary when analyzing cities, and the majority of public data sources covering demographic, socioeconomic, and economic characteristics are limited in their coverage with county-level information being the smallest geographic unit available for analysis. Throughout this report, Market Street has utilized data provided by Decision Data Resources (DDR) Research360 and IE360 web-based software and mapping packages to access data from Applied Geographic Solutions (AGS). AGS is a leading supplier of demographic and marketing databases to businesses nationwide. As discussed, when reliable and current information is available from public sources, Market Street will use these sources. However, when reliable and more current information is available from proprietary sources, including Applied Geographic Solutions, Market Street will leverage this information. This results in varying time periods being analyzed for certain indicators. For example, Market Street provides certain demographic estimates (such as educational attainment) for this year (2010) from proprietary sources, whereas public sources are leveraged for other demographic trends (such as population growth). In these instances, Market Street s proprietary sources, including Applied Geographic Solutions, ensure that their estimates are based on and consistent with the most recent publicly-available data, typically provided by the Census Bureau. In many cases, the data are presented in a chart as the percentage each component represents of the total. In these cases, unless otherwise noted, if the summation of the percentages of all the components does not equal 100 percent, it is due to rounding. LOCATION QUOTIENTS In the Prosperity section of this report, location quotients are used to measure the relative concentration of local employment in a given business sector. When applied to sector employment, they measure the ratio of a sector s share of total local employment to that sector s share of total national employment. (Local Employment in Sector / Total Local Employment) LQ = (National Employment in Sector / Total National Employment) October

25 A sector with an LQ equal to 1.0 possesses exactly the same share of total local employment as that sector s share of national employment. When a local sector possesses a location quotient greater than 1.0, this signals that the sector is more concentrated in the community than it is nationwide. Conversely, a location quotient less than 1.0 indicates that the sector is less concentrated in the community than it is nationwide. The higher the location quotient, the more concentrated the level of local employment as compared to its national equivalent. For example, a location quotient of 1.25 would indicate that a sector s share of total local employment is 25 percent higher than the same sector s share of national employment. A LQ of 2.0 would indicate that a sector s share of local employment is twice as large as the national share, while an LQ of 0.5 would indicate that the sector s share of local employment is half the national equivalent. COMMUNITY INPUT The inclusion of feedback and opinions solicited from a broad range of community stakeholders is critical to the success of this strategic process. Community input was gathered through individual interviews with business and community leaders, focus group sessions, and an online survey. Interviews and focus groups for this process were conducted during two field visits to the community in addition to interviews conducted over the phone from Market Street s Atlanta office. The online survey generated nearly 200 responses. 1 This input will supplement the quantitative analysis within this report. Participants feedback is distinguished by burgundy, bolded text throughout this report. Complete survey results can be found in the Appendix to this report. 1 Results from the online survey were collected Monday, October 4 th, However, Market Street has agreed to leave the survey open for citizen participation for an extended period of time. Although this additional input is not reflected in this Snapshot, it will ultimately inform the strategy development phase of this planning process, alongside all other community input. October

26 PEOPLE It is critical that all project stakeholders embark on Alpharetta s ten-year strategic process with a shared understanding of community dynamics and recent trends that can influence policy decisions. Assessing how the city of Alpharetta s population is growing and changing is the first step towards understanding its recent past and clarifying its future opportunities and challenges. This section analyzes the growth and well-being of the community s people in terms of demographics, socioeconomics, and education dynamics. POPULATION GROWTH Undeniably, Alpharetta s residents are its greatest asset. Studying demographic and socioeconomic trends can help show how the city s population is changing compared to other areas, and can clarify potential implications on workforce supply and needed services. Population dynamics can also raise questions about the quality of life or types of opportunities available to people of varying backgrounds within the community. The tables that follow illustrate trends in total resident population from In terms of population size, Alpharetta was the smallest of the comparison communities in 1990, 2000, and However, Alpharetta has experienced more rapid rates of growth than its comparison communities, the state, and the nation. Total Resident Population ( ) Source: U.S. Census Bureau Between 1990 and 2000, the city of Alpharetta added nearly 22,000 new residents, equivalent to 168 percent growth. This rate of growth outpaced the rates experienced in Cary (116 percent), Round Rock (98 percent) and Sandy Springs (26 percent), and far outpaced the national growth rate (13 percent). October

27 Net Change and Percentage Change in Total Resident Population ( ) Source: U.S. Census Bureau Since 2000, population growth in Alpharetta has been steady but more modest as compared to the 1990s. The city added 16,715 new residents between 2000 and 2009, equivalent to 48 percent population growth. Round Rock continued to experience a high rate of growth, driven by the allure of the Austin metropolitan area and the rapid expansion of employment opportunities within the metro. Reported resident population actually declined in Sandy Springs between 2000 and 2009, although these trends are likely compromised by differences in the boundaries of the census-designated place (pre-incorporation) and the official city limits (postincorporation). AGE DISTRIBUTION In the aftermath of the most recent recession, many communities are home to a surplus of workers looking for jobs. However, every community in the United States is facing the impending wave of retirements by the Baby Boom generation and many communities are facing a potential shortage of experienced workers as they lack a sufficient pipeline of younger talent capable of filling the positions left vacant by retiring Baby Boomers. An examination of the city s age distribution relative to its competitors and state and national dynamics provides some perspective on the demographic sustainability of Alpharetta s workforce. In 2010, 25.3 percent of Alpharetta s population is between the ages of 45 and 65, the key demographic that spans the range of those currently exiting the labor market and those approaching retirement age in the coming decade. This is on par with the national and state shares and is the second lowest share among the comparison communities, with only Round Rock having a smaller share (20.0 percent). Compared to the state and nation, Alpharetta has a higher share of residents under the age of 18, but among comparison communities it has a lower share than all but Sandy Springs. Since 2000, Alpharetta has seen their share of 45 to 65 year olds rise from 19.2 percent to 25.3 percent. The nation, state, and all of the comparison communities have also seen their share of 45 to 65 year old increase over the past decade. Alpharetta s share has increased at a higher rate than the state or nation, as have the shares in all of the comparison communities. October

28 Only 6.5 percent of the city s residents are age 65 or over in 2010, as compared to 13.3 percent nationwide and 10.9 percent in the state of Georgia. Among the comparison cities, only Round Rock has fewer residents aged 65 or over. All of the comparison communities, the state, and the nation saw a rise in their share of residents aged 65 or over. Alpharetta began the decade with the second lowest share of this demographic among the comparisons and maintained that position at the end of the decade. This relatively small share over the age of 65 indicates that many individuals and couples are likely choosing to retire elsewhere. This does not necessarily imply that Alpharetta is not a desirable place to retire, but more likely reflects the fact that the city s relatively high-income residents may be able to afford relocation to a second home in other parts of the state or country to enjoy their retirement. It may also reflect the fact that some residents chose Alpharetta as a place to raise a family, given the community s strong school systems and quality of life, and have simply chosen to retire elsewhere once their children exit the public education system. Alpharetta has a larger share of residents under the age of 18 than either the state or the nation. Although this share has decreased over the course of the decade, as it has for both the state and the nation, the decrease is smaller than that of the state or the nation and the percent of residents in this age group remains larger than those of the state, nation, and Sandy Springs. October

29 Most importantly, Alpharetta s share of 25 to 44 year olds is the largest among the comparisons, the state, and the nation. This comparatively strong pipeline will help to reduce the susceptibility of the city s workforce to the impending retirement of the Baby Boom generation. DIVERSITY Racial and cultural diversity is an important aspect of healthy communities. Many communities find that population diversity can provide good opportunities to enhance local cultural attractiveness and economic vitality. Similarly, employers often find that communities lacking population diversity are inhibited in their ability to attract the best and brightest to their companies. Percent of total population, 2010: In 2010, 65.5 percent of the population in Alpharetta is white, not-hispanic. The city possesses a smaller proportion of minority residents than Round Rock, Sandy Springs, the state of Georgia, and the nation. The city has a relatively large Asian population, representing a larger share of total population than all comparisons except Cary. October

30 Growth since 2000: The following table presents information related to Alpharetta s diversity, in terms of population growth by race and ethnicity between 2000 and Year Change in Race and Ethnicity ( ) Source: Applied Geographic Solutions While the white population comprises 65.5 percent of the population, it accounts for a proportionally smaller share of growth. Between 2000 and 2010, the city s white population grew by 3,629, making up 37.7 percent of Alpharetta s total population growth during this time (9,612). Because (1) minority residents account for 34.5 percent of the total population and (2) growth in communities of color within the community accounted for 62.2 percent of October

31 Alpharetta total growth since 2000, the city is clearly becoming and will continue to become more diverse. Between 2000 and 2010, the city s African-American community has doubled in size, making it the fastest-growing group. African- Americans share of total population in Alpharetta increased from 6.6 percent to 13.0 percent. There have also been sizable numbers of new Asian and Hispanic residents. EDUCATIONAL ATTAINMENT Educational attainment is an important indicator of socioeconomic well-being. Not only is educational attainment related to earning potential and income levels, but it also is one of the key determinants of a workforce s competitiveness. The following chart compares educational attainment of adults age 25 and older within Alpharetta with the benchmark communities, the state, and the nation in The city of Alpharetta s resident population is extremely well educated on average, with 59.5 percent of the adult population possessing a bachelor s degree or higher. By comparison, 27.9 percent of the national adult population possesses a bachelors degree or higher. Just over 18 percent of Alpharetta s adult population possesses a graduate or professional degree. This is a tremendous advantage for the city in its continued efforts to develop and attract new high-wage jobs. Incredibly, Sandy Springs and Cary surpass Alpharetta in combined bachelor and graduate degree attainment (64.2 percent and 61.9 percent, respectively). October

32 Additionally, the city s share of adults without a high school diploma (4.3 percent) is lower than all comparison communities, the state, and nation. Alpharetta also has the lowest level of associate s degree attainment (5.8 percent, similar to Sandy Springs). Alpharetta benefits from strong state workforce development resources, which are a best practice model in economic development, and provide support for workers trying to enhance their skill sets or advance their education. Alpharetta continues to make great strides in improving its rates of educational attainment. As shown in the following table, the community s workforce now includes higher proportions of adults holding bachelor s, master s, doctorate, and professional degrees than previously. However, while Georgia and the nation saw growth in two-year degree attainment, this proportion declined in Alpharetta. While the percent of high school dropouts did not drop as significantly as that of the state or U.S., Alpharetta s share of adults without a high school diploma is much lower to begin with, as previously noted. October

33 HOUSEHOLD INCOME Raising the quality of life for local residents is a key focus of community and economic development. To this effect, household income is one of the best measurements of a community s progress in economic development because it is an important indicator of economic stability and potential buying power of individuals and families. Median household income: As shown in the following chart, Alpharetta s median household income rose from $71,207 in 2000 to $98,535 over the period. This 38.4 percent increase far outpaced the rate of median household income growth in all comparison communities, the state, and the nation. The Census Bureau s American Community Survey three-year estimate of median household income in Alpharetta between 2006 and 2008 was nearly twice the statewide ($50,549) and national ($52,175) median household incomes. Out of the three comparison communities, Alpharetta trailed only Cary in 2000 in terms of median household income, but the city s rapid income growth during the past decade elevated Alpharetta s median household income well above that of Cary s by the period. October

34 Income Distribution: The following chart illustrates the distribution of household incomes as reported by the Census Bureau s American Community Survey three-year estimates spanning in Alpharetta, as compared to the three identified competitor communities, the state, and the nation. Consistent with reported median household income near $100,000 in Alpharetta ($98,535), 49.5 percent of Alpharetta households earn incomes above $100,000 each year. This exceeds all comparisons, with Cary the closest to Alpharetta with 44.7 percent. Only 6.7 percent of Alpharetta s households reported incomes below $25,000, nearly three and half times lower than the national share (23.2 percent). The distribution of incomes in Alpharetta reflects the relatively high-wage positions in the city, as well as the city s ability to attract highincome residents that may hold high-wage positions outside of Alpharetta. POVERTY Examining poverty rates is one of the best ways to help gauge a community or region s socioeconomic prosperity. Poverty rates are estimated by the U.S. Census Bureau using income measures from annual population surveys. Information including family size, pre-tax income, and number of children help the Census determine poverty thresholds. If a family s income is less than the poverty threshold, that family would be considered living in poverty. In 2008, the poverty threshold for a family of four with two children was $21,834. The poverty threshold for an individual in 2008 was $10,991. October

35 Total poverty: The following chart shows that Alpharetta s poverty rate for the total population was lower in estimates than those for comparison communities, the state, and the nation. This is not surprising given the relatively high household incomes and comparatively small percentage of households earning less than $25,000 per year. Alpharetta is the only geography examined that experienced a decline in poverty since 2000; the benchmark communities, Georgia, and the United States all experienced slight increases in people living below the poverty threshold. While the Census Bureau s three-year estimates spanning are the most reliable and up-to-date information available for all communities examined, poverty rates have undoubtedly continued to increase in recent years as the recent economic recession took a significant toll on household wealth through job and investment losses. Child poverty: While Cary has a smaller percentage of children living in poverty (5.0 percent), Alpharetta was the only community among those analyzed to experience a decline in child poverty rates (-0.5 percent), similar to the trends seen in overall poverty rates. These observed declines in overall and child poverty rates correspond with the increase in household wealth over the same time period, indicating that families in Alpharetta were growing in income and financial stability at a faster pace than the city s comparisons, the state, and the nation. October

36 EDUCATION In today s economy, competitive advantage is heavily based on quality of education and availability of a skilled workforce. Because competition for talent will heighten even more in years to come, economic growth will increasingly rely on the community s ability to meet the workforce needs of employers. Therefore, it is essential that communities make wise investments in education and training programs. Pre-K 12 Education The quality of a community s Pre-K 12 school systems is often related to its overall economic competitiveness. Business relocation decisions are regularly tied to the performance of a community s public Pre-K 12 systems. Typically, communities that succeed in educating their children have a strong workforce and are more competitive in the global economy. Overall characteristics: The following table shows key information for the schools in the city limits Alpharetta and the benchmark communities. Data from the National Center for Education Statistics were used for many indicators to ensure accurate comparisons across states. More recent data from state departments of education were used for indicators tracked by No Child Left Behind (NCLB), which requires uniform reporting across districts. Compared to the schools in the benchmark cities, Alpharetta s K 12 schools have a lower student-teacher ratio (one teacher per 13.7 October

37 students) and a smaller percentage of students eligible for free or reduced-price lunch (10.4 percent) despite having a larger enrollment than most of the other communities. K 12 Public Schools: Key Information (2008 Academic Year) Source: National Center for Education Statistics Note: Enrollment figures, student-teacher ratio, and the percentage of students eligible for free or reduced lunch represent figures for the entire population of students enrolled in schools with addresses within each city s limits. High schools: High schools in Alpharetta enjoy national reputations as institutions of excellence. Time magazine consistently ranks both Alpharetta High School and Milton High School in its annual list of America s best high schools. From the schools high percentage of seniors who pass Advanced Placement exams to the graduation rates that are significantly above the state average, Alpharetta s high schools succeed at preparing their graduates for higher education and other opportunities. In 2008 (the most recent year for which data is available), both high schools graduated over 90 percent of their seniors, much higher than the state graduation rate of 75.4 percent. High School Graduation, 2008 Source: Georgia Department of Education Note: Data not yet available for Teach Charter High School, which opened in Repeatedly throughout the stakeholder input process, participants cited the quality of Alpharetta s public schools as one of the top strengths and selling points of the community. Participants often had trouble identifying a particular area of the school system that needed improvement. Public education is often an area that residents in other communities frequently cite as needing improvement and significant additional investment. This simply was not the case in Alpharetta. However, input participants often stated that this was one of the most important aspects of the community that needed to be preserved to ensure that the community remained competitive for workers and new employers, and continues to benefit future generations. October

38 Georgia s End-Of-Course Tests (ECOT): The State of Georgia s Department of Education requires ECOT for the purpose of assessing student achievement of the state-adopted curriculum in core courses and to provide diagnostic data in support of improved student achievement. Students are tested at the end of the curriculum in eight core courses over the span of their middle and high school education. The following graphs show the achievement of students at Alpharetta and Georgia high schools who met or exceeded expectations for the algebra and biology end-ofcourse tests. While Georgia s average performance dropped to just 40 percent of students meeting or exceeding expectations in 2009, more than half of participants at Alpharetta schools met or exceeded testing standards. However, rates at Milton High School declined by five percentage points between 2008 and 2009, and rates at Alpharetta High School dropped by 23 percentage points. This indicates a lower level of course preparedness among students taking the test in While algebra rates of performance declined in recent years, the rates of students who met or exceeded expectations on the biology end-of-course test improved. Both Alpharetta and Milton high schools saw small increases between 2008 and 2009 while Teach Charter High School s rate remained the same. Levels of success on the biology ECOT among Alpharetta high schools were consistently higher than the state average. October

39 Higher Education Institutions of higher education provide significant economic impact within their regions. They educate existing residents, draw young people from outside the region, create value and innovation through research and development, often revitalize surrounding neighborhoods, and support existing businesses and industry clusters through targeted training and degree programs. Georgia State University (GSU): Georgia State University s Alpharetta Center offers degree programs through its Robinson College of Business and College of Education. This includes a core graduate Master of Business Administration (MBA) degree through Flexible MBA and Executive MBA tracks, as well as graduate courses in education. College of Education programs are planned to expand to offer an undergraduate early childhood education degree. The campus recently completed a facility adjacent to its existing building, the 45,000- square-foot Alpharetta Academic Facility which has 18 classrooms, an electronic library, and open-access computer and IT labs. As of fall 2010, all GSU programs have been moved to the new facility while Georgia Perimeter College will occupy the previously-existing Alpharetta Center. October

40 Georgia Perimeter College (GPC): GSU s campus in Alpharetta also hosts Georgia Perimeter College. GSU s new 2 Plus 2 Program allows GPC students to complete a Bachelor of Business Administration (BBA) degree through the neighboring GSU institution. Future degrees through the 2 Plus 2 program may include early childhood education and other partnered programs. Reinhardt College: Less than a mile from the GSU/GPC joint campus is Reinhardt College s North Fulton Center, offering academic programs specifically tailored to working adults. This location offers courses toward three different associate s degrees and five accelerated Bachelor of Arts concentration options. Additionally, the Working Adults into Teaching (WAIT) program at Reinhardt s North Fulton Center helps adults who have already earned an associate s degree complete coursework for a four-year degree in early childhood education. While educational options at the two-year, four-year, and graduate levels within Alpharetta s city limits are fairly limited, demand has remained high and the existing institutions continue to expand to meet the growing needs for local higher education opportunities. The Alpharetta community also benefits from reasonable proximity to other state and private universities and colleges. Access to diverse educational resources in the Metro Atlanta area can capture many students and workers who utilize them, helping to guarantee Alpharetta a solid pipeline of future workers if they are effectively attracted to opportunities within the city and in the larger metro region. Focus group participants and interviewees seemed pleased with recent developments in higher education in the region, including the expansion of programs and facilities at the Georgia State University campus in Alpharetta. A number of participants mentioned the potential to compete with other North Fulton communities in the months ahead for a branch campus of Gwinnett Technical College, and emphasized the strong economic impact that the campus could have on the community. Of those online survey respondents that indicated they would like to see additional higher education programs added within the region, the majority mentioned the addition of more graduate-level programs, including continued expansion of business and education masters degree programs, and the addition of law and engineering programs. October

41 PROSPERITY This section will present and explicate key trends in a variety of economic indicators, including those related to employment, business sector dynamics, tax environment, and business costs. Each of these indicators contributes to a broad understanding of the community s ability to generate employment and wealth, or Prosperity. By examining Alpharetta s competitive position against the selected benchmark communities, the city s economic strengths will be highlighted and its challenges revealed. A breakdown of employment and relative concentration by sector will provide a first look at the city s business sector composition. This composition will be examined in greater detail in the forthcoming Target Business Review. EMPLOYMENT This section will explore trends in resident employment from 2000 to It is important to distinguish between resident employment and total jobs. Resident employment refers to the employment status of individuals residing within the city limits. Total jobs refers to the number of employees that work within the city limits, irrespective of their place residence. The following chart displays an index of resident employment growth from June 2000 June Employment values in each geography have been set to a value of 100 to allow for a visual comparison of how employment trends have varied since 2000 in each area. October

42 Employment growth from 2000 to 2004 was relatively modest in Alpharetta and all other comparison geographies, with the exception of Round Rock. Round Rock, and the larger Austin-Rock Rock metropolitan area, has been relatively resilient to the most recent economic recession as well as the 2001 recession. Resident employment in Sandy Springs has declined alongside resident population, however, this is due in part to changes in the boundaries of the Census designated place (pre-incorporation) and the city s official limits (post-incorporation). The following table displays trends in employment from June 2000 to December 2007 the official national onset of the recent recession and from December 2007 to June 2010, the most recently available data at the city-level from the Bureau of Labor Statistics. Resident employment grew by more than 6,000 in Alpharetta from the beginning of the decade to the onset of the most recent recession, with much of this growth occurring in 2005 and This was equivalent to a 31.2 percent growth rate, far outpacing national and statewide growth, and exceeded only by the rapid growth of Round Rock. Since the national recession began in December 2007, resident employment in Alpharetta has declined by 2,746, equivalent to a 10.3 percent decline. This rate of decline was exceeded slightly by Sandy Springs (11.2 percent decline) but was larger than the national and statewide rates of employment loss. Cary began to recover rapidly from the recession in January 2010, nearly recouping all employment losses experienced in the previous two years. Resident employment in Alpharetta remained relatively stagnant in the first half of 2010, indicating that the city s residents, and the larger Metro Atlanta region, has not entered a full labor market recovery as quickly as its out-of-state comparison communities and the nation at large. As a measure of labor market health, resident employment trends augment unemployment rates. Reported unemployment rates do not capture many hidden unemployed individuals that have been unemployed for an extended period, lost their unemployment benefits, and are therefore no longer officially counted as unemployed but rather as not in the labor force. Total Resident Employment ( ) Source: Bureau of Labor Statistics Data from the Georgia Department of Labor Worker Adjustment and Retraining (WARN) reports provides information on the degree to which Alpharetta has been affected by mass layoffs and closures during the most recent recession. Although Alpharetta makes up only 9.6 percent of Fulton County s total employment, it was home to 27.8 percent of county job losses due to layoffs and closures in Job October

43 losses in Alpharetta alone comprised 10.2 percent of the ten-county metro region s total in Data covering January to September of 2010 show that there have been three significant layoffs or closures in Alpharetta resulting in a loss of 310 jobs. This represents 10.7 percent of the 10-county metro total year-to-date, and 17.7 percent of closure- or significant layoff-related losses in Fulton County. The following table displays the ratio of jobs (employment located within Alpharetta regardless of employee place of residence) to working-age resident population. As of 2010, the number of jobs within Alpharetta s city limits is 55 percent higher than the size of its resident working-age population. This implies that the city is a large net importer of employees from other parts of Metro Atlanta. Sandy Springs is also a relatively large net importer of employees from outside the community, with the number of jobs exceeding the working-age resident population by 38 percent. By comparison, the Cary and Round Rock communities are both net exporters of employees to surrounding communities. The nearly 71,000 jobs located in Cary represent 81 percent of the working-age population, indicating that Cary is still a commuter town to some degree, sending workers to surrounding areas in and around the Research Triangle. The same is true for Round Rock. Both Cary and Round Rock are more traditional suburban bedroom communities than true job centers like Alpharetta and Sandy Springs. Ratio of Jobs to Working-Age Resident Population (2010) Source: Applied Geographic Solutions UNEMPLOYMENT Unemployment among Alpharetta s residents has historically been considerably lower than national, state, and Metro Atlanta averages. In June 2000, only two percent of the city s labor force was unemployed, roughly two percentage below the national (4.1 percent) and statewide (3.9 percent) rates. The city s rate fell between comparison communities Cary (2.2 percent) and Sandy Springs (1.8 percent), but well below that of Round Rock (3.9 percent). Employment grew at a pace that exceeded the growth rate of the labor force in Round Rock in the early portions of the decade, resulting in a declining unemployment rate. Meanwhile, Alpharetta and all other comparisons experienced rising unemployment during the early part of the decade, primarily as a result of the 2001 recession and subsequent jobless recovery. Unemployment stood at 3.7 percent in Alpharetta in December 2007, at the onset of October

44 the most recent recession. Between December 2007 and June 2010, unemployment increased 4.4 percentage points in Alpharetta to 8.1 percent. This was slightly lower than the increase experienced in Sandy Springs (4.6 percentage points), but was larger than the increase experienced in Cary and Round Rock, both of which are contained within metropolitan areas with labor markets that were not as heavily affected by the national recession as Metro Atlanta. As of June 2010, unemployment in Alpharetta was still well below the Atlanta-Sandy Springs-Marietta metropolitan area unemployment rate (10.0 percent), the statewide rate, (10.3 percent) and the national rate (9.6 percent). Source: Bureau of Labor Statistics LABOR FORCE PARTICIPATION The labor force participation rate measures the percentage of the working age population (ages 18 69) that is either employed or unemployed. 2 Throughout the 1980s and 1990s, labor force participation rates increased steadily across the United States, driven in part by the influx of women and minorities entering the workforce. Female labor participation rates have stabilized in the 21 st century, and the nation is currently facing a new trend: the beginning stages of the retirement of the Baby Boom generation, those 55 and older. Their retirement will contribute to declines in 2 Those that are no longer actively seeking work (have not looked for work recently) are not considered to be unemployed and are therefore not considered to part of the labor force. Those individuals that have accepted part-time work for economic reasons meaning that they would like full-time work but have been forced to settle for part-time work are included as employed individuals and are therefore included as part of the labor force. October

45 labor force participation rates throughout the nation. Areas with large percentages of their population between the ages of 45 and 69 will see larger relative impacts and face greater challenges as they attempt to replace retiring workers in the coming decade. Although some individuals are delaying retirement as a result of the impact of the most recent recession of household incomes and wealth, the aforementioned demographic trends will still be felt by communities nationwide in the years ahead. *Reliable data for Sandy Springs was not available for the first two quarters of In 2000, labor force participation rates were very high in Alpharetta (86.8 percent) and all comparison communities as compared to the national average (77.6 percent). Alpharetta and the three identified comparison communities are all home to highlyskilled residents in relatively high-wage positions, as compared to the average American community. Consistent with national trends, Alpharetta, Cary, Round Rock, and the state of Georgia experienced a decline in labor force participation over the course of the 2000s. Reliable data covering Sandy Springs was not available. However, with nearly 80 percent of the working age population actively engaged in the labor force, Alpharetta is likely to continue to experience strong household wealth accumulation from wages and salaries. However, as discussed in subsequent sections, recent declines in housing values will have a counter-balancing effect. October

46 BUSINESS SECTOR COMPOSITION The following table displays the composition of employment and establishments in the city of Alpharetta by major business sector. The table also includes location quotients (LQs) for major business sectors. Location quotients measure the relative concentration of employment in a given business sector in a specific geographic area as compared to the national average. Specifically, they measure the percentage of total city employment in a particular business sector divided by the percentage of total national employment in that same sector. A more detailed and technical discussion of location quotients is located at the beginning of this report, following the Executive Summary. The forthcoming Target Business Review will examine Alpharetta s business sector composition in greater detail and more fully explore the trends and opportunities in a variety of sectors. This section of the report is intended to provide an introductory snapshot of current business sector composition. Alpharetta has benefited tremendously from major infrastructural investments made in previous decades, including the development of multiple business parks with strong telecommunications and fiber optic infrastructure. Coupled with the city s comparatively well-educated population and the relative desirability of Metro Atlanta as a place to do business, these investments attracted multiple regional headquarters and other operations of high-technology and Fortune 500 companies to Alpharetta. Many of these firms are classified within the information sector, which encompasses information technology, telecommunications, data processing, and internet service providers, among other subsectors. As a result, employment in the information sector has swelled to over 7,000 jobs in 2010, producing a location quotient of This indicates that the information sector s share of total jobs in Alpharetta (14.4 percent) is nearly seven times the national share (2.1 percent). This sector captures the employment contained within many of the city s largest employers, including McKesson, Verizon, AT&T, LexisNexis, and Oracle. Many of the city s other major employers, including ADP and certain business units of McKesson, Siemens, UPS Supply Chain Solution, and Ryder Shared Services, are classified as professional and technical services. There are more than 4,400 individuals employed in this relatively high-wage sector in Alpharetta, representing 8.9 percent of all jobs in the city, as compared to 5.7 percent nationwide (LQ = 1.56). Combined, these two sectors information and professional and technical services capture much of the employment that many might suspect to be included in the management of companies and enterprises sector. The data for this sector seems to show conflicting information, with only 38 reported employees but 160 establishments. This information captures a number of home-based businesses, LLCs, or subsidiaries that may not contain full-time work, and thus do not count towards total jobs, but are still included in establishment counts. October

47 Business Sector Composition (2010) Source: Applied Geographic Solutions Note: Sectors with location quotients above 1.1 are shaded in green to illustrate the city s competitive advantage in supporting the sector, indicated by a relatively large share of total city employment located in the sector relative to the national average. Sectors with location quotients between 0.9 and 1.1 are shaded orange, representing those sectors with a roughly equivalent share of total employment in Alpharetta as the national average. Sectors with location quotients less than 0.9 are shaded red, representing those sectors with a relatively small share of total city employment as compared to the national average. The city is also home to a vibrant retail environment, employing more than 10,000 individuals, representing just over 20 percent of all jobs in the city. North Point Mall and surrounding shopping areas and the Windward Parkway retail area are major draws for residents from surrounding North Fulton and Forsyth County communities. This influx of retail expenditures from surrounding areas provides a healthy boost to the city s tax base. There were nearly 6,000 jobs in the health care and social assistance sector, one of the fastest-growing sectors across the nation and the only major sector to continue to experience employment growth nationwide during the most recent recession. However, the city s share of employment in health care and social assistance was slightly lower than the national average (LQ = 0.95). Demand for health care services October

48 will continue to rise in the years ahead as the Baby Boom generation approaches their peak age of health care expenditure. However, the city has a relatively small share of its population over the age of 45, which may reduce these impacts in Alpharetta as compared to the average community in the United States. 50 Largest Employers in Alpharetta (October 2010) Source: City of Alpharetta, Occupational Tax Records/Alpharetta Business Listing BUSINESS COSTS This section will briefly review Alpharetta s competitiveness from the standpoint of taxes, fees, and utility costs: key costs that impact the city s ability to attract and retain new businesses. Taxes and Fees Although a number of factors related a community s workforce are rising to the top of site considerations, taxes consistently rank high on companies priority location concerns. Communities with non-competitive tax structures risk driving away companies that are already located in the area. They also risk discouraging prospective companies that commonly select from a number of communities, many October

49 with highly competitive tax rates. Similarly, an inability or unwillingness to provide competitive incentives packages and tools limits a region s ability to attract and expand high-value firms. The following table displays rankings for Georgia, North Carolina, and Texas those states that are home to Alpharetta and its comparison communities from the Tax Foundation s State Business Tax Climate Index in A value of 1 indicates that a state has the lowest burden in a particular category, while a ranking of 50 indicates that a state has the largest tax burden in a particular category. Overall, Georgia falls in the bottom half of all states, driven by relatively high state property tax rates and individual income tax rates. The state s six percent corporate income tax rate contributes to an eighth place ranking for corporate income tax burden, as compared to North Carolina s 25 th place ranking and 6.9 percent corporate income tax rate. Curiously, Texas received an unfavorable ranking in the corporate income tax category. The state has no corporate income tax and charges a relatively low margins tax (essentially revenue minus cost of goods/services sold). The Tax Foundation cited the structure of the state s margins tax as the reason for giving the state a low ranking but no additional context was provided. State Business Tax Climate Index, 2010 Source: Tax Foundation Note: 1 equals most favorable The following table examines state-level tax structures with particular attention paid to those taxes that heavily impact small businesses and entrepreneurs. The Small Business and Entrepreneurship (SBE) Council s Business Tax Index includes 16 different tax measures, capturing specific taxes on S-Corporations, corporate capital gains tax rates, the presence of alternative minimum taxes for corporations, and a variety of other taxes impacting small businesses such as internet access or gas taxes. Lower index values indicate less prohibitive tax environments for small businesses and entrepreneurs. Texas business-friendly tax environment gives Round Rock and other communities in the state that Alpharetta may compete against a distinct advantage from the perspective of business startups. Georgia fares relatively well against North Carolina, but neighboring states South Carolina, Alabama, and Florida all have less prohibitive tax environments for small businesses when the various tax rates considered by the SBE Council are taken into account. October

50 Small Business and Entrepreneurship Council Business Tax Index, 2010 Source: Small Business and Entrepreneurship Council Note: 1 rank equals most favorable The following table displays the aforementioned corporate income tax rates as well as other indicators of individual and corporate tax burdens at the state- and local-level. Combined state and local taxes collected per capita in 2008 in Georgia were slightly higher than those collected in North Carolina and Texas. The combined state and local tax burden as a percentage of per capita income was higher in Georgia and North Carolina than in Texas (which has no individual income tax). However, Texas has relatively high property taxes to compensate for the lack of revenue from individual income taxes. Likewise, at the local level, Round Rock, Texas has considerably higher residential and commercial property taxes than Alpharetta. October

51 State and Local Tax Burden Sources: Tax Foundation, Federation of Tax Administrators, state departments of revenue, and local tax assessor websites The city of Alpharetta has the highest property tax millage rate (5.75 mills) out of all North Fulton communities, with the exception of Mountain Park (11.78 mills). Neighboring Roswell (5.455 mills), Johns Creek (4.614 mills) and Sandy Springs (4.731 mills) all have slightly lower millage rates. The North Fulton Community Improvement District (CID) also imposes an additional 3.0 mills ($3 per $1,000 in assessed value). All of the aforementioned North Fulton communities assess properties at 40% of real property values. The city of Alpharetta also imposes three different types of development impact fees, collected for public safety, roads, and parks and recreation. Sandy Springs and Roswell also collect development impact fees for the same three categories. Fee schedules vary by size and type of development, and although rate schedules differ, they are generally comparable in size. Although development impact fees remain in place, Sandy Springs adopted a resolution in February 2010 to reduce all other fees collected by the Community Development department by 50 percent for a period of one year. This reduction is intended to help jump-start development in Sandy Springs, and may incentivize developers who are examining a variety of North Fulton locations to choose Sandy Springs over other North Fulton communities. October

52 Business owners that participated in community input sessions had varying opinions about the city s business costs and climate. Most business owners felt that the city s taxes and impact fees were not prohibitive to development and were competitive with other North Fulton communities. A number of participants felt that the City could best incentive development and redevelopment by providing more non-financial incentives such as easements and setback compromises. In general, there was a feeling that the City needed to be more flexible in its willingness to grant both financial and non-financial incentives at the local-level. Many of the same aforementioned business owners felt that the permitting process in Alpharetta could be cumbersome and difficult to navigate. A number of individuals indicated that they often received conflicting requests from various departments and that the permitting process did not seem to be well coordinated between City departments. Some individuals stated that the new and existing businesses would benefit tremendously from a single, consolidated list of requirements and requests, and the scheduling of a single meeting with all relevant City officials, as opposed to receiving requirements from multiple departments at varying times in the review process. Many individuals, including business owners, stated that the City possessed a reputation of being difficult to deal with and occasionally non-responsive. One individual stated that they knew a few existing business owners who have indicated that they would not open another business in Alpharetta due simply to the difficulty of the permitting and development review process. A few participants expressed concerns that certain ordinances were applied discriminately and that favoritism was perceived to be an issue within the development review process. However, others emphatically stated that this was just perception, and indicated that they had nothing but positive experiences with City officials that were very responsive to their needs. One individual stated that Alpharetta did not have a perception of being difficult to deal with, indicating that Alpharetta was perceived to be a place that will cost you money during the permitting process, whereas other neighboring communities will cost you time. Clearly, there were conflicting opinions about tangible and intangible business costs in Alpharetta. October

53 Electricity Rates Utility costs can be extremely burdensome for certain sectors, particularly manufacturing, extraction, and refining. Electrical costs for some manufacturing sectors can reach one-third of total costs. Other technology-intensive industries also rely upon affordable electricity to support their operations. The table that follows displays the average retail price (cents per kilowatt-hour) of electricity for residential, commercial, and industrial uses at the state-level. Local-level rate schedules from utilities providers vary tremendously in the manner in which rates are applied, with factors such as use, load, time of day, and others making direct comparison difficult. A state-level average across the three primary use types provides the best comparison for analyzing competitiveness. Average Price of Electricity by Use (June 2010) Source: Energy Information Administration Residential, commercial, and industrial electricity rates in Georgia are lower than the national average in all three use categories. Average rates in North Carolina are lower than those in Georgia, while Texas commercial and industrial rates are roughly comparable to those of Georgia, on average. October

54 PLACE Alpharetta s quality of place has been a key factor in the city s residential and economic growth over the last two decades. Attractive housing options, quality schools, safe neighborhoods, and proximity to Metro Atlanta amenities helped Alpharetta attract families and businesses. While the Great Recession put downward pressure on an otherwise mobile workforce and business community, the long-term implications of quality of place remain unchanged. As the nation pulls into full economic recovery, workers and businesses will continue to vote with their feet (as economist Charles Tiebout has said) by choosing to locate in communities with the most attractive bundle of amenities to suit their needs. As such, the continued development Alpharetta s community product is inextricably tied to its economic development. This section examines some of the concepts associated with Alpharetta s quality of place including cost of living, housing options, infrastructure and commuting, and public safety and their implications on its competitiveness as a place to live, work, and grow. COMMUNITY ASSETS Alpharetta s strong community assets have helped to its reputation as a familyfriendly community. In July 2009, Forbes.com ranked Alpharetta #1 on the Best Places to Move list. All of the comparison communities examined in this report also landed on the list: Cary ranked 8 th, Sandy Springs ranked 15 th, and Round Rock came in at 24 th place. The Best Places to Move ranking was derived from the proportion of residents who had recently relocated, population growth, family incomes, people in executive and professional jobs, and the price, size and age of homes, changes in school enrollments, and other factors. Alpharetta also ranked 19 th on CNNMoney.com s list of 6-figure towns, ranked by median family income in None of the comparisons made the list. Developing an array of recreational, arts and entertainment amenities is critical for communities trying to attract visitors, and attract and retain families and workers. Some of Alpharetta s amenities are summarized in the following list. While not a comprehensive list, it represents the wide array of entertainment options open to residents and visitors. Recreational Amenities City of Alpharetta parks system - Cogburn Road, North Park, Rock Mill, Webb Bridge, Wills, and Union Hill parks provide residents ample opportunities to experience playgrounds, picnic shelters, tennis courts, football fields, softball and baseball fields, walking trails, equestrian facilities, arboretums, and other amenities. Big Creek Greenway 6.2 miles of trails run alongside Big Creek from Webb Bridge Road to Mansell Road. There are concrete paths for walking, jogging, October

55 biking, and rollerblading and dirt trails for mountain biking. The Greenway also includes a large wetland where wildlife can be observed. Equestrian facilities Many areas of North Fulton County remains culturally rooted in equestrian activities. Alpharetta has several equestrian facilities including Chukkar Farm & Polo Club, Foxcroft Farm, Willow South, and Wills Park Equestrian Center. Arts and Entertainment Verizon Wireless Amphitheatre at Encore Park 12,000 capacity outdoor concert venue which attracts big name acts and is the summer home to the Atlanta Symphony Orchestra. Annual Events Alpharetta hosts many popular annual events including the Crossroads at Crabapple Antique and Arts Festival, Alpharetta Arts StreetFest, the Tree Lighting Ceremony, Taste of Alpharetta, and others. Private Art and Antique Galleries Alpharetta boasts nearly 20 art galleries and antique shops catering to a variety of tastes and price points. Family Entertainment North Point Mall, Andretti Indoor Karting and Games, The Cooler Family Skate Center, multiple movie theaters, geocaching opportunities, and other amenities provide family friendly options for things to do in Alpharetta. Community input participants were generally very pleased with the amenities available to individuals and families within the city. However, some participants noted that the city lacked attractive nightlife options that young professionals would find desirable. The Verizon Wireless Amphitheatre was frequently mentioned as a very welcome addition, and residents often cited the quality of the city s parks and recreation facilities as a key strength of the community. Many also indicated that they would like to see these facilities maintained in the years ahead to ensure that future generations have the same access. October

56 LONG-TERM VISION The city of Alpharetta has taken proactive measures to ensure it remains a competitive destination within Metro Atlanta for both families and businesses. The ability to develop land easily and in a cost-effective way is critical to enabling growth within a community. However, facilitating unplanned or haphazard growth can result in an undesirable community which lacks cohesion, character, and attractive aesthetics. The city s 2025 long-range comprehensive plan strives to carve out more acreage for commercial, office, and industrial development as well as additional acreage for single family homes and apartments. In general, single-family residential development is more expensive for municipalities to service than commercial development. Continual increases in the commercial tax base of the city will allow the community to continue to enhance its livability through infrastructure improvements, downtown development, attractive residential amenities, and other venues for investment. Future Land Use Plan, 2025 Source: City of Alpharetta October

57 The city s future land use plans indicate that all remaining undeveloped land (1,365 acres) will be developed in some form by The table that follows displays the division of this new growth according to the city s long-range plans. These plans call for the development of 30 additional acres of parks and recreation space for city residents. This represents a 2.6 percent increase in acreage dedicated to parks and recreation. Office space is planned to grow from 2,167 acres to nearly 3,000 acres by 2025, representing a 37.2 percent increase in acreage dedicated to office development, increasing its share of total land use from 14.2 percent to 19.5 percent. The city has planned for relatively modest growth in residential development, and has planned for only 17.4 additional acres to be occupied by multi-family development. If the city wishes to attract more young professionals and recent college graduates that are early in their careers yet interested in establishing roots in Alpharetta, the city may want to consider planning for additional multi-family development. COST OF LIVING A cost of living (COL) index provides more information about how expensive it is to live in a community or region because it considers not only home values, but also the cost of groceries, utilities, transportation, health care, and miscellaneous goods and services. The COL index can affect relocation decisions and a household s standard of living when moving to a new community. National data sources are helpful for evaluating and comparing the cost of living relative to the national average, typically represented by the index value of 100. C 2 ER (formerly ACCRA), a national community and economic development research organization, publishes quarterly cost of living indices for metropolitan communities across the nation. While the data provide some indication about the cost of living differences between regions, they do not provide direct comparison of actual costs within most metro areas. Therefore, the table below displays the Q COL index values for the Atlanta, Raleigh, and Austin metro areas, which are home to Alpharetta and the three comparison communities. Overall cost of living in Metro Atlanta is below the national average, due to comparatively lower prices for housing and utilities. While Metro Atlanta s competitive position in utility costs is withheld when comparing the region to the Raleigh and Austin metro areas, housing costs metro-wide are slightly higher. Additionally, Metro Atlanta has notably higher health care costs than these peer metro areas and the national average. October

58 Cost of Living Index, Q Metropolitan Area Overall Index Grocery Housing Utilities Trans. Health Care Misc. Goods & Services Atlanta-Sandy Springs-Marietta, GA Raleigh-Cary, NC Austin-Round Rock, TX Source: Cost of Living Index, C2ER Community input participants noted that the city s cost of living was slightly higher than surrounding communities, driven primarily by higher housing costs. These costs are not prohibitive to many that reside in the city, as Alpharetta s per capita income reflects the relative affluence of its residents, and in turn, their preferences for housing. However, a few community input participants noted that the city s cost of living may be prohibitive to young professionals and recent college graduates that would like to live close to their places of work in Alpharetta. HOUSING For a community to be economically competitive, it must have housing that is both affordable and attractive to its workforce. Because communities have workers of all pay scales, it is important to have housing options to suit the needs of all types of workers, families, and individuals. Trends in homeownership: The following chart shows homeownership rates for 2000 and the three-year period between 2006 and 2008, as provided by the U.S. Census Bureau. In 2000, Alpharetta homeownership lagged behind the state (67.5 percent) and the nation (66.2 percent) at 60.3 percent; however, by the period this figure exceeded state (67.8 percent) and national (67.1 percent) rates, rising nine percentage points to 69.3 percent. Alpharetta also boasts a higher rate of homeownership than Sandy Springs (55 percent) and Round Rock (64 percent). Homeownership is an important indicator of a family s ability to accumulate wealth, especially for lower-income households. Given the relatively high incomes of families in Alpharetta, home equity likely represents a smaller share of household wealth than the average household across the state and nation. October

59 Foreclosure activity: The Great Recession has caused homeownership dynamics to change in many communities due to increased foreclosure activity. While updated information for homeownership rates will not be available through the Census Bureau until at least December 2010, RealtyTrac provides zip code-level information on foreclosure activity across the nation. According to RealtyTrac, Metro Atlanta ranked 7 th among metro areas nationwide for foreclosures in the first half of 2010 with 52,381. In August 2010, 21 homes were foreclosed on in zip code 30005, 49 in zip code 30022, 65 in zip code 30004, and 23 in zip code Residents of Milton and Johns Creek are also contained within these zip codes. Across all four zip codes, one in every 371 homes received a foreclosure October

60 filing in August Meanwhile, only one in every 1,807 units received a foreclosure filing in Cary in August 2010, but in Round Rock, one in every 297 units received a foreclosure filing (data was not available for Sandy Springs). To provide additional context within North Fulton County, one in every 393 units in Roswell received a foreclosure filing in August 2010, roughly equivalent to the rate observed in Alpharetta. Trends in housing values and prices: Data from the Census Bureau show that between 2000 and the three-year period, median home values in the city of Alpharetta increased by 50 percent from $226,300 to $340,500 outpacing appreciation rates in Sandy Springs (up 33 percent from $345,200), Cary (up 40 percent from $196,700), Round Rock (up 36 percent from $119,600), and Georgia (up 47 percent from $111,200). Between 2006 and 2008, Alpharetta maintained the second highest median home value ($340,500) behind Sandy Springs ($460,600), but well above the other geographies examined. These relatively high appreciation rates are indicative of a number of factors within the Alpharetta housing market. First and foremost, they indicate that demand for single-family housing within the city remained very strong throughout the 2000s as individuals and families viewed Alpharetta as a desirable location for residence within Metro Atlanta and North Fulton County. However, the degree to which prices appreciated (50 percent) may indicate that new construction did not keep pace with demand, placing upward pressure on the price of existing homes. It may also reflect the fact that much of the new single-family construction in the city was developed at considerably higher price points than the average value of the existing housing stock. October

61 More recent data from real estate search engines which aggregate data on sale and list prices provide further insights into recent home value trends in Alpharetta and its comparison communities. According to Zillow, the median sale price for singlefamily homes in Alpharetta in July 2010 was $295,000. This was 13.1 percent lower than the median list price during the same month. This rate of loss at the median (the percentage difference between the median sale price and the median list price) was higher than the rates of loss on July home sales in the Sandy Springs and Cary markets, where sellers experienced losses of only 2.6 percent and 3.6 percent, respectively. However, the median-priced Alpharetta homes sold for $117 per square foot, which represents 91 percent of the median list price per square foot, a figure identical to Sandy Springs. So, while sellers are not getting top dollar for their homes they are able to move the property for a reasonable reduction that is comparable to sellers in the competing Sandy Springs market. At first glance this loss at the median seems to conflict with Zillow s data showing that the median sale price increased by 0.3 percent between July 2009 and July However, this upward movement in median sale price likely reflects the fact that more valuable homes were placed on the market in July 2010 than in July In July 2010, 30.3 percent of all homes sold in Alpharetta were sold for a loss. This level exceeded the percentage of homes sold for a loss in both the Cary and Sandy Springs markets (data was not available for Round Rock). The percentage of homes sold for a loss in Alpharetta has risen consistently since the second quarter of 2007 in Alpharetta, with only 5.9 percent of homes sold for a loss in May While it is a difficult blow for homeowners to absorb during difficult economic times, these are corrections in the market that will help bring housing prices better in line with current market demand. Median Home Values (Single Family Homes), July 2010 Source: Zillow.com and Trulia.com Trends in residential building permits: Data covering the number of building permit filings provides important context to the above discussion of market stabilization as permit filings shed light on the degree to which developers are responding to changing market conditions. The following table shows building permits filed October

62 between 2005 and Not surprisingly, with reductions in demand, an excess supply of existing homes for sale, and tight credit markets, the number of singlefamily residential building permit filings has declined considerably in recent years in Alpharetta. Although data was not available from the Census Bureau for Sandy Springs in 2005 and 2006, a comparable rate of reduction was seen in the last three years. Single-family and multi-family permit activity remained relatively strong in Cary in 2008 and Building Permits Filings ( ) Source: Census Bureau Composition of the housing stock: Alpharetta has issued comparatively low numbers of multi-family permits in recent years, according to the Census Bureau. The number of multi-family permits has actually risen in recent years in Cary. Demand remains strong, supported by the aforementioned figures showing that only 9.2 percent of homes were sold for a loss in July Higher permitting activity in multifamily housing in Cary and Round Rock may be due a smaller relative proportion of multifamily housing in these communities. The following chart illustrates the composition of the housing stock in Alpharetta and its comparison communities. The Census Bureau s three-year estimates indicate that 69.3 percent of the housing stock in Alpharetta was single-family, while the remaining 30.7 percent was multi-family. This multi-family share in Alpharetta exceeded the multi-family share in both Cary and Round Rock, but trailed the Sandy Springs market, where multifamily housing represents the majority (52.9 percent) of all housing units. October

63 Community input participants had widely varying opinions on the composition of the housing stock in Alpharetta. Some individuals noted that they would like to see more multi-family housing (in the forms of condos and apartments) developed at price points that are affordable to young professionals and recent college graduates that have started their careers in Alpharetta. These individuals placed a value on the city s ability to attract young professionals not only in their careers but also as residents. On the other hand, a few participants emphasized that they would like to see the community maintain the charm that they have long associated with the city and its predominantly single-family, detached residential areas. A number of participants mentioned that there is often a public resistance to new mixed-use or multi-family developments in the city. Rental affordability: As previously discussed, approximately 30 percent of Alpharetta s housing stock is multi-family units. Many of these occupants are renters. According to the Census Bureau, the median rent in Alpharetta is $893, a figure higher than all of the geographies examined. However, for local renters this is fairly affordable. The U.S. Department of Housing and Urban Development s guideline for affordable rental housing is that which can be accessed for 30 percent or less of the October

64 household s total income. Between 2006 and 2008, only 28 percent of renters paid more than 30 percent of household income on rent, representing a smaller proportion than all comparison communities, the state, and the nation. PUBLIC SAFETY One of the most important factors contributing to the attractiveness of a community for existing and potential residents is public safety. The FBI reports both property and crime at the community, state, and national level. The following tables show the rates of various property and violent crimes per 10,000 residents in Alpharetta and the comparison areas in 2009, as well as trends in the number of incidents of all property and violent crimes from 2007 to In 2009, Alpharetta had a higher incidence of property crime than Cary and Round Rock, but lower than Sandy Springs and the statewide average. The city s rate of property crime was slightly higher than the national rate in This rate was driven by a relatively high incidence of larceny-theft. October

65 Property Crime Rates per 10,000 Residents (2009) Source: FBI Uniform Crime Reports, Census Bureau Although the city possessed a slightly higher rate of property crime, the city had no murders or cases of non-negligent manslaughter in 2009 and rates of other forms of violent crime that were considerably lower than the national and state averages. The city s overall violent crime rate (9.9 incidents per 10,000 residents) was just slightly higher than the rate observed in Cary, North Carolina (9.7 incidents per 10,000 residents), but considerably lower than the rate observed in Sandy Springs. Violent Crime Rates per 10,000 Residents (2009) Source: FBI Uniform Crime Reports, Census Bureau Thankfully, property crime is on the decline in Alpharetta, with the city experiencing a 12.9 percent reduction in the total number of reported incidents of property crime between 2007 and Further, the city experienced a 65.1 percent reduction in the number of reported violent crime during the same period, far exceeding the reductions experienced in the comparison communities, the state, and the nation (Round Rock actually experienced an increase in violent crime during the period). October

66 Change in the Total Number of Incidents of Property and Violent Crime ( ) Source: FBI Uniform Crime Reports, Census Bureau Residents and business owners that participated in community input frequently cited the city s safety and lack of crime as a key strength and a primary reason why they believed Alpharetta was a very desirable place to raise a family. Many residents would likely be surprised to see the findings that the city s property crime rate was actually higher than the national average in However, the relative lack of violent crime and the notable improvements that have been made in recent years should be encouraging to all residents and business owners, especially when considered alongside the crime rates of Alpharetta s Metro Atlanta comparison, Sandy Springs. INFRASTRUCTURE AND COMMUTING The quality and connectivity of a region s road, rail, and air networks are critical to its ability to attract and retain residents and business. Residents prefer easy commutes to work and access airports for travel while many businesses demand strong infrastructure to support the transportation of goods as well as access to major markets for business travel. This section explores the competitiveness of Alpharetta s infrastructure, including roads, public transit, air service, rail connectivity, and broadband. Given the fact that Alpharetta s economy is primarily service-producing, less attention is paid to the competitiveness of the region s infrastructure in the context of freight shipment and the transportation of goods. Interstate Connectivity and Roadways Connections to major arterials are important because they provide workers greater job and housing options through easier access and are critical for the rapid and efficient movement of goods. Metro Atlanta communities are served by three major interstate highways that span multiple states: I-75, I-85, and I-20. Situated on the northeast side of the urban core, Alpharetta has access to I-85 and I-75 via GA 400 and I-285 while Sandy Springs, closer to the urban core, has easier access to I- 75 and I-85 given its proximity to I-285. October

67 Round Rock is served by only one major interstate, I-35, with access to I-10 and I-37 through San Antonio more than 80 miles away. Cary residents and businesses have direct access to I-40, with I-85 less than 20 miles away. Generally speaking, Metro Atlanta communities have access to an interstate network that provides greater connectivity than Cary and Round Rock. The Georgia Department of Transportation (GDOT) is currently working on several transportation improvement projects in Alpharetta. Major projects currently underway or soon to be underway include the following: SR 140/Holcomb Bridge SR 9/Alpharetta Highway: Addition of turn lanes, raised medians, and shoulder improvements. SR 9/Roswell Road to Forsyth County Line: ATMS/ITS (advanced transportation management systems/intelligent transportation systems) equipment including adaptive signal timing, cameras, radar detection, preemption and variable speed limit warning signs at strategic locations, and other improvements. SR multiple locations: Full upgrade and repair of traffic signals and pedestrian facilities for 24 intersections. Windward Parkway and North Point Parkway Traffic Signal Interconnections: Addition of CCTV and VDS (cables and cameras) coverage necessary to provide roadway condition information to the Alpharetta TCC (transportation control center). CR 186/Hembree Foe Killer Creek: Reconstruction of an existing bridge on Hembree Road over Foe Killer Creek. This project is a safety improvement and will not add capacity. CR 85/Kimball Bridge Big Creek: Bridge replacement on CR 85/Kimball Bridge Road two miles southeast of Alpharetta in Fulton County with a higher/wider bridge. SR 961; CR 3233 & CS 3393: Upgrade of traffic signals at eight locations. Alpharetta has received $23,583,476 from the Recovery Act, of which approximately $7.3 million has been used for transportation projects including the Kimball Bridge replacement and traffic signal upgrades on SR 961, CR 3233, and CS3393. The majority of Recovery Act funds have been applied to environmental site assessments and environmental remediation projects. October

68 Focus group participants and interviewees frequently emphasized the importance of completing Westside Parkway, noting that this would be the single-most important transportation improvement in Alpharetta for many years to come. Many individuals stated a desire to see Highway 9 traffic rerouted to Westside Parkway to allow for the transition of Highway 9 into a more pedestrian-friendly Main St. through downtown Alpharetta. Many of these same input participants noted that GDOT plans for Highway 9/Main St. through downtown Alpharetta needed to more strongly consider the long-term downtown development aspirations of the community. Online survey respondents reiterated these sentiments, but also generally gave the community s roadway capacity and connectivity positive marks. Public Transit The city of Alpharetta has comparatively weak connections to metro transit providers, as evaluated against other communities in North Fulton that lie closer to MARTA rail connections. While the city is served by three MARTA park and ride lots at Windward Parkway, Mansell Road, and McGinnis Ferry Road Alpharetta lacks direct bus or passenger rail access. There are three primary MARTA bus routes that run along Windward Parkway, North Point Parkway, Haynes Bridge Road, and Highway 9, providing connecting service to the North Springs rail station. MARTA Bus Service in Alpharetta Source: MARTA October

69 Sandy Springs benefits from the presence of a MARTA red line rail station with park and ride capacity, which connects the community to Buckhead in three stops, midtown Atlanta in six stops, and Peachtree Center downtown Atlanta in nine stops. Additionally, the presence of Cobb Community Transit bus service and MARTA intown and express bus service provides residents, commuters, and visitors with more robust travel options. Round Rock is in a similar competitive position to Alpharetta; however, Round Rock has planned transit linkages that will bring the community more fully into the urban fabric of Austin. Currently, there is no transit link between the Austin Capital Metro service area and Round Rock. Round Rock is the northern terminal stop for a planned regional commuter rail line. The region s first commuter MetroRail line opened in May 2010 running just west of Round Rock. Additionally, the city of Round Rock is considering implementing a shuttle service between Round Rock employment centers and Capital Metro park and ride lots. The Town of Cary s transit authority, C-Tran, runs six bus routes with some connection to other transit providers in the Raleigh-Cary metropolitan area. Generally speaking, public transit service in the Town of Cary is extremely limited and there is no commuter rail in the Raleigh-Cary metropolitan area. Commuting Trends A key consideration for relocating workers is commute time and ease. As Metro Atlanta has grown in population, travel times to downtown have increased while transit options have not grown substantially. This has made some so-called exurbs, or far-reaching bedroom communities, less attractive to some people, especially as intown housing prices have fallen. The Census Bureau did not collect transportation mode information for commuters in Alpharetta for during its American Community Survey. As such, the following table shows 2000 data, which represents the most recent and reliable data available. In 2000, a larger portion of Alpharetta s workforce (5.7 percent) telecommuted than in any of the comparison communities, the state, or the nation. Only one-half of one percent walked or rode a bicycle to work. Only 8.3 percent of all workers carpooled, while 83.6 percent drove alone, a percentage that was higher than all comparison communities with the exception of Cary. October

70 Mode of Transportation Taken to Work (2000) Source: Census Bureau The following chart illustrates travel times to work for residents of Alpharetta, its comparison communities, Georgia, and the United States. According to the Census Bureau, 62.4 percent of Alpharetta s residents had a commute time of 30 minutes or less during the three-year period spanning , a smaller proportion than Round Rock (65 percent), Sandy Springs (67.5 percent), and Cary (72.4 percent). Nearly one in five residents (19.6 percent) have a October

71 commute of at least 45 minutes, a larger share than all three comparison communities. This is likely just as indicative of Alpharetta s desirability as a place of residence for individuals working in the urban core of Atlanta as it is indicative of congestion impacts on travel time. The following table shows where residents of Alpharetta traveled to for their primary jobs in According to the Census Bureau, of the 25,871 primary jobs held by Alpharetta residents in 2008, 17 percent of these jobs were located in Alpharetta up from 15 percent in 2002 representing a higher proportion than any other city in Metro Atlanta. This is a positive trend, indicating that residents are finding employment closer to home, and more employees in Alpharetta are finding desirable housing. Primary jobs are those jobs which export goods and services outside the community. That is to say, they are not primarily local-serving jobs (such as restaurant or grocery store employees). Where Alpharetta Residents Work, Primary Jobs Only (2008) Source: Census Bureau, On the Map Focus group participants and interviewees frequently mentioned traffic congestion as one the biggest challenges for the city to overcome in the years ahead. However, multiple participants noted that the city s transportation network is remarkably efficient given the rapid growth that the city has experienced, and praised its connectivity as indicative of highquality planning by city officials. Traffic congestion received more votes than any other item by online survey respondents as the number one challenge facing Alpharetta s future competitiveness. October

72 Air Capacity Access to multiple markets via air transportation is critical for many businesses, especially corporate and regional headquarters. Access to Hartsfield-Jackson International Airport has undoubtedly had a positive effect on both Alpharetta s and Sandy Spring s ability to develop strong clusters of such operations. Hartsfield- Jackson International boasts the title of the world s busiest airport. With nearly half a million departures annually, metro Atlanta residents and businesses can access competitive fares and multiple flights a day to nearly every destination on the planet. Between June 2009 and June 2010, more than 38 million passengers departed on flights leaving Hartsfield-Jackson. Hartsfield-Jackson currently has a $6 billion Capital Improvement Program (CIP) which has included the new fifth runway to increase capacity, a new state-of-the-art car rental facility, and a new 12-gate international terminal. The primary airports serving the Cary (Raleigh-Durham International) and Round Rock (Austin-Bergstrom International) markets are considerably smaller, but still highly competitive, airports that are capable of accommodating the variety of travel demands that arise from high-technology companies and corporate headquarters located in Austin-Round Rock and the Research Triangle. While Austin-Bergstrom International and Raleigh-Durham International have comparatively lower freight and passenger traffic, these airports benefit from the presence of low-cost Southwest Airlines. However, the recent announcement that Southwest Airlines will be purchasing AirTran Airways will, most likely, give Southwest access to the Atlanta market. Passenger Air Capacity: Primary Airports Serving Alpharetta, GA; Sandy Springs, GA; Cary, NC and Round Rock, TX Source: Research and Innovation Technology Administration, Bureau of Transportation Statistics Rail Access Alpharetta and Sandy Springs are not directly served by rail access via short lines or spurs; however, Atlanta is served by two class I railroads, CSX and Norfolk Southern. Cary is directly served by both of these railroads and Round Rock is served by Union Pacific. Additionally, BNSF has track rights from Round Rock to their main line in Milano, TX. Considering that Alpharetta has largely been successful at attracting and developing higher-wage professional service sector jobs rather than manufacturing October

73 and freight-dependent jobs this hardly puts Alpharetta at a competitive disadvantage for future economic development opportunities. Source: GDOT October

74 Broadband Broadband infrastructure is critical to a community s overall competitiveness. Speed Matters is a project of the Communications Workers of America, a union for workers in communications, media, airlines, manufacturing, and public service. Speed Matters tracks broadband speed and investments and advocates for advancement of U.S. broadband infrastructure. According to Speed Matters, in 2009 the average download speed for the nation was 5,222 kilobytes (kbps) per second and the average upload speed was 1,126 kbps. As shown in the following chart, Alpharetta s infrastructure facilitates download speeds of 8,436 kbps and upload speeds of 1,490 kbps. Among the competitor communities, only Sandy Springs is in a similar competitive position. In Cary, download speeds are average and upload speeds are very slow, and in Round Rock download speeds are below average but upload speeds are the fastest among the geographies examined. A few focus group participants and interviewees mentioned Alpharetta s tremendous investment in fiber optics, especially in the Windward area, as having one of, if not the, single largest impacts on the city s attraction of high-tech employers. Small business owners and individuals working in the information technology sector noted that broadband speed was outstanding in the city. These sentiments are certainly supported by the quantitative findings. October

75 Download Speeds Upload Speeds Fulton County, GA Wake County, NC Williamson County, TX Source: Speed Matters October

76 CONCLUSION If Alpharetta s future prosperity is hinged on the enthusiasm of its population, then the future is undoubtedly bright. Alpharettans are an engaged, passionate group with a deep commitment and love for their hometown. Even the most vociferous critics in the stakeholder input process conveyed a belief that Alpharetta stands out in its class. Despite the scourge of the Great Recession, Alpharetta remains a place that justifies its residents affection. It stacks up well against very strong competition, maintaining a high standard of living, with high-wage employment, top-shelf public schools, abundant recreational amenities, and proximity to major road and air networks. The economy has flourished with the help of a highly educated workforce, connected roadway infrastructure, and strong telecommunications and fiber optic investments. These assets continue to represent the building blocks of a prosperous community. Still, the Great Recession has posed new challenges to Alpharetta s status quo; unemployment has risen to 8.1 percent; population growth has slowed considerably; one in 371 homes was foreclosed upon in August 2010; and traffic congestion continues to plague residents. Because Alpharetta s story in the recent past is one of unwavering economic growth and success, it could be difficult for stakeholders to understand and take ownership of the type of effort communities need to thrive in today s economy. If Alpharetta s pre-recession growth could be considered easy, its post-recession growth will be the product of a focused vision and hard work. For every community that stands still or takes a step back, many more move forward with ambitious plans for continued reinvention. This is only the first stage of a months-long process to arrive at a future strategic vision for Alpharetta and an action plan to achieve it. Opportunities remain abundant in Alpharetta, but serious challenges have emerged and must be confronted directly in order for opportunities to be realized. Ultimately, the true degree to which public and private leadership and the general population are committed to implementing Alpharetta s new strategy will determine its chances for success. October

77 APPENDIX: ONLINE SURVEY RESULTS Critical to the success of this strategic process is the inclusion of feedback and opinions solicited from a broad range of community stakeholders. An online survey was posted at the City of Alpharetta website ( on September 23, 2010, to help garner input from stakeholders. A number of other partners in the community, including the Greater North Fulton Chamber of Commerce and the Downtown Alpharetta Trade Association assisted in publicizing the survey on their websites. The survey yielded a total of 190 online respondents between September 23 and October 4, Information about the survey s respondents as well as the survey results is included in this Appendix. Specific comments from survey respondents are provided when available. These comments were randomly selected and may not be representative of overall respondent attitudes. October

78 1. What is the ZIP code of your primary residence? October

79 2. Do you live within the City of Alpharetta s corporate limits? Don't Know, 2.1% No, 42.8% Yes, 55.1% 3. What is your age? 0.5% 1.1% 51.6% 11.1% 9.5% 26.3% Less than 18 years of age years of age years of age years of age years of age Over 65 years of age October

80 4. What is your race/ethnicity? 1.6% 1.1% 0.5% 3.7% 1.6% 1.1% 90.4% Caucasian African-American Hispanic or Latino Asian-American Two or more races I choose not to answer Other (please specify) 5. What is your employment status? 2.1% 0.0% 3.7% 1.6% 11.1% 81.6% Employed Unemployed, looking for work Unemployed, not looking for work Active military service Student Retired October

81 6. What is the ZIP code of your company or organization s primary location? October