Economic development and growth analysis of Wentzville, Missouri

Economic Development Analysis and Proposal for Wentzville, Missouri
Locale
Wentzville is a small city that is situated in the east expanses of St. Charles County within the state of Missouri. The city has been in existence for more than 160 years with a total area of just over 51 square kilometers. Wentzville is situated at the juncture of the 70th and 64th Interstates. Its remarkable city services together with safety powers, exceptional system of education and schooling, scenic parks and recreational regions make certain that Wentzville is a vibrant expanse to live and work in and also for exploration. Substantially growing and developing from a small town of solely 5,000 residents just over two decades ago to a city comprising of almost 40,000 residents in the present day, Wentzville has come to be a leading location for residents and businesses as well. At the present moment, it is the second fastest growing city within the state of Missouri and boats of having the fastest growing and developing school district in the entire state. Moreover, in spite of the fast-paced and remarkable growth, the city has sustained its birthplace appeal and sociability. The impressive and progressive growth of the city of Wentzville can be accredited to a devoted and idealistic city government and workforce amalgamated with engaged members of the community and pulsating businesses working in tandem to prepare the city for the future (Linked In, 2017). In the past decade, the city has experienced significant growth in population, with just over 37,000 city residents in the past year, which makes it’s the 17th biggest city within the state. From 2010 up until the present day, the city of Wentzville has experienced a growth rate of approximately 1.96 percent every year. This is a rate that is double that of the United States in general and approximately six times over the growth rate of the state of Missouri in the similar period of time. The fast-paced growth of the city in the past decade is indicative that there is a great likelihood of a continuous increasing growth rate in the following decade. The increase in population within the city has placed it on the map for different consumers, businesses, investors and even residents that desire to live in the city. The population not only increases further prospects for development and investment but also implies that there is a sufficient workforce (Scott, 2011).
Economic Situation
The economic situation in the locale is positive and constructive. The City of Wentzville is presently experiencing impressive financial and economic growth. This is down to the improvement in unemployment and increase in the number of jobs. Growth rate improvement of the city is linked to the development and expansion of General Motors, which is the largest employer in Wentzville. Presently, the GM assembly center employs almost 4,000 residents of the city, the biggest number compared to any other establishment or facility. In accordance to Wentzville (2015), General Motors Corporation, in 1980, commenced on the construction of its biggest and most contemporary auto assembly plant at that point in time, offering over 6,000 jobs when the facility shifted into full capacity production. In particular, the company repudiated an offer from the Mayor of the city of St. Louis to maintain its assembly plant in the metropolis, therefore heralding the company’s repositioning of its present-day location in the city of Wentzville.
From an economic point of view of the prevailing situation of the city, the most apparent latest accomplishment is the expansion of the General Motors assembly plant. The corporation recently commenced on the construction activities on an extensive building expansion for a new product line, which was culminated in 2014, equipped and unveiled for operation in the subsequent fiscal year. It is imperative to note that from an economic standpoint, General Motors is essential and significant business for Wentzville and is a facilitator for increased growth of the manufacturing business in the supplying of the company’s expansion. The expansion of the GM plant encompassed an investment of just about $400 million, through a 500,000 square foot enlargement and spreading out to the prevailing 3.7 million square foot manufacturing plant. Moreover, there is also the building of a stamping press plant that is presently being added to the facility giving rise to an increase of 114,000 square foot to the initial enlargement. The GM facility preserves 1,400 current locations and plans a supplementary 1,260 jobs linked with expansion amenities (Wentzville, 2017).
Nonetheless, in spite of the fast-paced increase in population, development of different industries and increase in investment in the city of Wentzville, one of the major economic concerns in the expanse is the high cost of living. The table below delineates the Wentzville Cost of Living Index.
Index
Wentzville
Missouri
National

Cost of living index
100
91
100

Index




Goods & Services Index
93
95
100

Groceries Index
103
97
100

Health care index
96
97
100

Housing index
105
79
100

Transportation index
94
93
100

Utilities index
113
104
100



The table above illustrates outlines comprehensive and widespread information for the cost of living index for the city of Wentzville. As can be noted, as compared to the other cities located in the state of Missouri as well as other cities that are positioned across the United States, the cost of living index of Wentzville is relatively greater by 10 percent. This is greater in comparison to the mean index of the state of Missouri and also for the whole nation. Goods and services incurred on a daily basis together with housing costs constitute 63 percent of the overall cost of living index. Goods and services that are essentials and a basic need irrespective of location offer a precise overall sense of the cost of living in one city as compared to another city. On the basis of the table illustrated above, the cost of retail goods and services in the city are 3 percent lower as compared the mean cost for Missouri and 7 percent lower as compared to the rest of the nation. Most of all, there are five key aspects that ought to be taken into consideration. The cost of living in Wentzville is 10 percent higher than the Missouri mean cost of living. Secondly, the cost of living in Wentzville is equivalent to the nationwide average. Third of all, the cost of housing in Wentzville is 5 percent greater compared to the countrywide average. In addition, for the state of Missouri, the overall sales tax is 17 percent lesser compared to the national average whereas the income tax of the state is 33% lesser as compared to the nationwide mean income tax (Area Vibes, 2017).
SWOT
A SWOT analysis is an approach for laying emphasis a person’s or group of people’s attention on strengths, weaknesses, opportunities, and threats. It is beneficial especially for the reason that strengths and weaknesses can be the cause of prospective future risks. Moreover, the technique is beneficial not just for ascertaining context but also for ascertaining risks. The comprehensive examination of the strengths, weaknesses, opportunities, and threats constitutes and brings together the outcomes of both the internal environment and external environment analyses (Murray-Webster, 2010). The following is a comprehensive SWOT analysis of Wentzville city.
Strengths
Weaknesses

1. Economic stability and growth
2. Growing Population in the city
3. Educational Growth and Development
4. Impressive job growth
1. High standard of living
2. Negative image of top public officials

Opportunities
Threats

1. Available land for development
2. Increasing interest in investment
3. Funding Sources
1. Long Commutes
2. Rising population



Strengths
1. Economic stability and growth
The City of Wentzville has been privileged and well-heeled to continue having stability through the financial and economic recession. The city has continue to go through an upturn and growth in the residential, commercial, and industrial sectors in the recent years. In particular, in the past decade, the city has experience strong and gradual growth and investment. Despite the fact that several other towns and expanses felt the adverse effects of the financial recession, the city of Wentzville faced the continued new construction and development of housing together with commercial facilities. Moreover, Wentzville has faced constructive and affirmative growth through the expansion and development of General Motors together with increase in interest from the suppliers. Similarly, there has been the development of several smaller commercial and retail projects, together with the institution of a satellite campus and new housing numbers (Wentzville City, 2015).
2. Growing Population
The city of Wentzville was affirmed to be the fastest growing city in the state of Missouri in the decade between 2000 and 2010. In particular, the population of the expanse progressively increased from 6,896 during the 2000 census to 29,070 subsequent to the 2010 census. This is indicative of an extraordinary 321 percent rise in the past decade. The population has further increased to 37,395 in the present day. In accordance to Scott (2011), with the population surpassing 30,000 residents, it has come to be a critical populace in which retailers together with restaurant chains across the United States have taken notice. The population not only increases further prospects for development and investment but also implies that there is a sufficient workforce.
3. Educational Growth and Development
The city of Wentzville’s growth is most apparent in its School District, which has perceived a constant increase in the number of students once the school years start. For the past decade or so, the schools in the city grew and developed more than 120 percent, a two-fold increase in the student population. As a result, Wentzville has become the fastest growing district in the state of Missouri. In addition, the city has increased more than 8 new school buildings in the past 10 years or so. As a result, the city presently has places to educate its students and this has been conducted in a financially accountable manner. Despite the fact that there has been incredible growth, the city has one of the uppermost performing school districts within the state of Missouri. For instance, by the year 2010, the Missouri Department of Elementary and Secondary Education, was accredited with distinction in performance for the fifth consecutive year (Scott, 2011).
4. Impressive job growth
The rate of unemployment in the city of Wentzville stands at 3 percent. This improving rate is significantly impressive as the prevailing unemployment rate of the nation stands at 5.20 percent. Secondly, the growth rate of jobs in the city is largely impressive prevailing at 3.34 percent whereas that of the United States in general is a lowly 1.59 percent. This indicates the key strength that the city has is not only decreasing the rate of unemployment, but also improving the number of jobs in recent times. Moreover, the city has a key strong suit in perceiving an impressive future growth rate for jobs in the next decade or so, as it is forecasted to be 43.69 percent. The city’s growth rate is expected to be substantially higher compared to the nation’s overall in the forthcoming period as the state has a future job growth of 37.98 percent (Best Places, 2017).
Weaknesses
1. High standard of living
One of the shortcomings of the city of Wentzville is the high standard of living. This might dissuade residents from relocating to the expanse, purchasing homes and even limit the magnitude of investments. The cost of living in Wentzville is 10 percent higher than the Missouri mean cost of living. Secondly, the cost of living in Wentzville is equivalent to the nationwide average. Third of all, the cost of housing in Wentzville is 5 percent greater compared to the countrywide average.
2. Negative image of top public officials
One of the downsides and shortcomings faced by the city of Wentzville encompasses the negative image and character of the top public officials in the recent periods. In particular, in the past number of years, top government officials within the city of Wentzville have been included in wrangles and lawsuits owing to poor public misconduct. There is the lawsuit by Lisa Harrison, who was the Chief of Police in Wentzville against Nick Guccione, the mayor of the city and two Aldermen including Cheryl Kross and Sonya Shyrock. In addition, the former mayor was also facing lawsuits and eventually fined by a court of law. These actions and activities have led to the negative perspective of such officials from the general public and therefore giving rise to a lack of public confidence in carrying out their required duties in a diligent manner.
Opportunities
1. Available land for development
As a city, Wentzville has a massive amount of land that is accessible and available for fresh and new development together with a number of prospects for redevelopment (Wentzville City, 2015).
2. Increasing interest in investment
Wentzville has experienced a great deal of increase in new construction licenses and permits, which demonstrates the continued manifestation of interests from developers and also investments in the city (Wentzville City, 2015).
3. Funding Sources
The city of Wentzville has several different potential funding sources that will facilitate the accomplishment of infrastructure enhancements necessitated to incentivize development and investment in the city. This includes funding from the state through the Missouri Department of Economic Development. There is also potential financial assistance from St. Charles County Road Board with applications for Economic Development Grants that cover almost 70 percent to 80 percent (Wentzville City, 2015). For instance, St. Charles County economic development department works industriously to guarantee a climate that supports business and encourages the prevailing industries to not only grow but also expand, and also appeal to new businesses to invest in the community. The financial support encompasses help on available buildings and locations, business backing, and redevelopment (St. Charles County, 2017).
Threats
1. Long Commutes
One of the threats being faced by the city of Wentzville is long commutes. In particular, the prevalent challenge to the continued growth being experienced by the city is the rise in gasoline prices, which has increased in the past number of years for every gallon unit. This is largely for the reason that as the prices of gas increase, it implies that the residents experience as if they have shifted considerably farther away from the job markets. The increase in gas prices can limit the constant need for consumers to seek new houses in the city. The city is constantly working to maintain low home prices by analyzing the building codes of the municipality with the main aspiration that this will offset the concerns of the gas prices (Scott, 2011).
2. Rising population
From 2010 up until the present day, the city of Wentzville has experienced a growth rate of approximately 1.96 percent every year. This is a rate that is double that of the United States in general and approximately six times over the growth rate of the state of Missouri in the similar period of time. Projections indicate that this growth rate is bound to continue for the forthcoming 15 years. Despite the fact that this has been beneficial in placing the city on the map, it is also a threat. In these similar period of time, the city has perceived 27 new subdivisions platted within its confines. This outstanding population growth rate of the city of Wentzville poses a significant threat not only for the city’s school district, but also for the parks and recreation department.
Legal and Public Policy Issues
There are legal and public policy issues that are presently being faced by the City of Wentzville. One of the issues is lobbying regulations. In particular, lobbying reform is amongst the top agendas of the legislators in the city as well as in the state at large. In recent times, legislators and government officials have either had to resign or even faced lawsuits subsequent to allegations of personal misconduct. This is an imperative legal and public policy issue for the reason that it is necessary for the city at large and its administrators to be taking the initiative and institute the tone for the manner in which the general public perceive their activities in the city. More so, this is all the more important because so as to have the opportunity to take on fundamental policy issues, it is imperative for Wentzville city administrators including the Mayor and members of the Alderman to gain or regain the trust of the general public for them to be not only confident in the procedures but also in the individuals carrying out such procedures (The Missouri Times, 2016).
Another legal and public policy issue that is important in the city of Wentzville encompasses the revision of building codes. The officials in the city are taking into consideration numerous changes in building codes that would have an influence on the standards and benchmarks for engineering and designing. The Board of Aldermen are taking into account suggested alterations of zoning regulations with reference to subdivisions. These are contestations between the Aldermen and the Zoning Commissions. These alterations are purposed to modernize and restructure the city code provisions of Wentzville in order to make sure that they are in alignment with the provisions in St. Charles County. Basically, the suggested alterations are purposed to propagate the time permitted for the development of a piece of property devoid of the need for restitutions on a short period of time. This will give rise to lose regulations but at the same time are contested to increase the development of the city. The city of Wentzville has numerous lots that are ready for development. However, owing to the prevailing provisions, just over 300 homes can be constructed on an annual basis. This implies that it would take more than a decade to maximize these lots. Another area of contestation is street creep. This is an aspect that has given rise to a great deal of deliberation. This is largely for the reason that the city of Wentzville has faced a lawsuit regarding street creep, which takes into account the shift in positioning of street pavements in the course of time, causing harm to sidewalks, driveways, as well as foundations for home within the city (Castile, 2011).
Governmental Atmosphere
The incorporation of the City of Wentzville took place in 1872. The key operations of the city comprise of public safety, highways and roads, culture and regeneration, public enhancements, planning and zoning, and overall administrative services. With respect to government atmosphere, the City of Wentzville has instituted a Council-Administrator kind of government as stated and laid out in Chapter 77 of the Revised Statues of Missouri. The City of Wentzville is a fourth-class metropolis under the Missouri state edicts making use of the council-administrator type of government. Policymaking together with legislative power are conferred in the Board of Aldermen, which is made up of the Mayor along with six other members. In particular, the Board of Aldermen is in authority for, amongst other aspects, legislating and sanctioning regulations, espousing and carrying out the budget, selections to boards and committees, and signing the City Administrator, cause to undergo consensus of Mayor and City Attorney, which is at the present moment, a private establishment under contract (City of Wentzville, 2017).
The City of Wentzville appoints a mayor, whose title acts more than simply than the figure head of the government. The election of the Mayor is conducted after every four years whilst the other six Aldermen are elected after every two-years and is done on a non-partisan and impartial basis. The City Administrator is in charge of carrying out the guidelines and regulations of the Board of Aldermen, superintending the day-to-day operations of the government and is liable for the appointment and supervision of the heads of the different City departments. Moreover, the city also partakes in the employment of more than 220 permanent personnel and offers a wide range of municipal services that comprise of finance, human resources, economic development, police, public works, parks and recreation, community development, and water as well as wastewater utilities. The community is given fire protection services by means of a distinct fire services district with its individual governing board (City of Wentzville, 2017).
In particular, the role of the mayor includes presiding over the Board of Aldermen, supervising officers regarding the business of the city of Wentzville, implementation of laws and regulations, signing of commissions, and most of all the reduction of fines and permitting pardons. On the other hand, the city’s administrative team also includes six aldermen. The duty includes handling issues that encompass zoning, policies for the city of Wentzville and also working on other major projects. In addition, each of the Aldermen deal with different issues within the city. Their work encompasses conducting some research and subsequently talking to different representatives from other cities and other counties that have partaken in the same projects and also talk about any worries or apprehensions that might be affected by such issues (City of Wentzville, 2017).
One of the government-related issues that could significantly hamper economic development prospects of the City of Wentzville are prevailing lawsuits against it. Notably, since the year 2000, the city has been amongst the top and fastest developing expanses in the state of Missouri. However, in the recent times, the city has also be recognized for internal political mayhem and commotion. A very fitting instance is the lawsuit by Lisa Harrison, who was the Chief of Police in Wentzville against Nick Guccione, the mayor of the city and two Aldermen including Cheryl Kross and Sonya Shyrock. The top government officials of the city were accused of undertaking a gender-based harassment campaign against Harrison with the main endeavor of discrediting her. In addition, in recent times, the city of Wentzville has also faced different issues within the government. To begin with, there were lawsuits filed against the city by the former engineer of the city as well as the building commissioner with claims of wrongful firing. In addition, the city experienced the resignation or the retirement of the finance, economic development, as well as purchasing directors. Moreover, the director of public works of the city was also fired. Most of all, the previous mayor of the city, Paul Lambi, also faced an aldermanic probe. These aspects are indicative of the internal turmoil within the governmental facet of the city (Schlinkmann, 2014).
Action Plan
The key endeavor of the action plan is to augment the economic vivacity and liveliness and sustain its remarkable quality of place. This is attained through the retention as well as the expansion of the prevailing businesses and the appeal of new businesses to the community. To increase economic development of the city, it is imperative to make the most of its manufacturing development, especially around General Motors. General Motors has made a substantial investments in its Wentzville Assembly Center. One of the key ways of improving the economic viability and growth of the manufacturing sector is through the provision of different tax incentives. This is purposed to attract different corporations that can work in tandem with the outstanding GM plant. Notably, in recent periods, with the expansion of the corporation’s plant to encompass a stamping establishment, the City of Wentzville dispensed and sanctioned $300 million of Chapter 100 bonds to be reimbursed by means of a 75 percent tax reduction of both real estate and personal property taxes in the course of a timeline of ten years. The inference of this is that the other 25 percent that is residual in real estate and personal property taxes is meant to be disseminated to the different taxing authorities through the initial 10 years from the time the Chapter 100 bonds were issued. Subsequent to this period of time, the corresponding taxing authorities will obtain 100% of tax revenue (Wentzville City, 2017).
Another step of the action plan takes into account close collaboration and cooperation with the St. Charles County Economic Development Center (EDC), Missouri Department of Economic Development (MoDED) and the U.S. Small Business Administration (SBA) with the main purpose of determining programs accessible to help business expansion and development. The county’s EDC will facilitate the city’s economic development through the creation and sustainment of well-paying jobs, funding growth in business, strengthening the city’s tax base, helping entrepreneurs and business of scopes and sizes to thrive and prosper, the provision of site selection services to the city and the new investing companies, and also augmenting the quality of place of the locality. In addition, the economic development department of the state will enable Wentzville to generate an environment that supports and promotes economic growth by backing the city’s businesses and diverse industries, fortifying the community, forming a talented and skilled labor force and also a resident life of high quality. Part of the action plan includes facilitating the development of companies in the manufacturing sector to work in tandem with General Motors and also companies in other different sectors. For instance, in recent periods, the EDC invested $250 million in Nucor Company to generate more than 250 jobs to residents in the state. This will enable Wentzville to improve on its remarkable job growth and decrease in the unemployment rate (Missouri Department of Economic Development, 2017).
Another step of the action plan takes into account the utilization of tax incentives in a way that makes the most of the rate of return for Wentzville’s community. In addition, there is also the step of continued work with the Community Development and Public Works departments so as to rationalize and simplify practices that are in support of improvement of local businesses. It is imperative to note that Wentzville is the second-fastest growing city in the entire state of Missouri. Therefore, it is imperative for the city government to maximize this aspect to increase its economic development. Bearing in mind that there vast land available for development, it is recommended that the Aldermen and other Wentzville city officials to constantly revise its building codes and zoning provisions to increase the likelihood of development. Through the analysis and appraisal of these city regulations, it will become possible to make Wentzville more competitive compared to other neighboring cities in terms of the housing market. Bearing in mind that Wentzville is situated on the environs of St. Louis, it is imperative for home builders to make it convincing for the consumers to drive additional miles to the city. Basically, this will enable Wentzville to have a more competitive pricing point that will be more appealing to consumers. This is to ascertain that Wentzville does not have a competitive disadvantage compared to the neighboring cities.
In recent times, it has been expensive to build a house in Wentzville in comparison to nearby communities. Therefore, by analyzing and making adjustments to these codes, it becomes possible to ascertain precisely what is making these things more costly. It has been established that the City of Wentzville necessitates extra effort, a wide range of products to be employed, considerable red tape, as well as dissimilar designing standards. As a result, this has made the city of Wentzville to be less competitive. In accordance to Castile (2011), some of the changes that are beneficial in decreasing the cost of building in the city consist of altering the law necessitating a rock layer underneath minor boulevards. In previous times, Wentzville has necessitated developers to build low-traffic subdivision boulevards to the similar design qualifications and provisions as broader streets that contain high traffic. Alterations can encompass eradicating the requirements for smaller streets.
In conclusion, the city of Wentzville will continue to thrive through the growth and development of the General Motors Wentzville Assembly Center together with several other industrial-associated businesses and activities. Despite the fact that it is imperative to augment and increase the numerous businesses that are reliant on General Motors, it is also necessary to enhance the businesses that are not reliant on GM, including wholesale, manufacturing, and warehousing facilities. The overall direction of economic development endeavors and the action plan as it is linked to this perspective is to generate an industrial base that is diversified. Imperatively, the City of Wentzville ought to go on being in support of determinations to develop and utilize the strength of General Motors. On the other hand, to the magnitude conceivable, the Department of Economic Development ought to market to other autonomous industrial usages.






References
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Best Places. (2017). Wentzville, Missouri. Retrieved from: http://www.bestplaces.net/economy/city/missouri/wentzville
Castile, R. (2011). Wentzville may revise building codes. St. Louis Post-Dispatch.
City of Wentzville. (2017). City Administrator. Retrieved from: http://www.wentzvillemo.org/document_center/HR/cityadministrator-brochure-full_final2.pdf
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Missouri Department of Economic Development. (2017). About Us. Retrieved from: https://ded.mo.gov/
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Schlinkmann, M. (2014). Police chief’s suit against mayor is latest example of Wentzville political turmoil. STL Today. Retrieved from: http://www.stltoday.com/news/local/stcharles/police-chief-s-suit-against-mayor-is-latest-example-of/article_929b828d-3add-5762-ac1c-8384a4a8c812.html
Scott, J. (2011). What’s up in Wentzville? The Population, Among Other Things. Patch. Retrieved from: https://patch.com/missouri/wentzville/whats-up-in-wentzville-the-population-among-other-things
St. Charles County. (2017). Economic Development. Retrieved from: https://www.stcharlescitymo.gov/153/Economic-Development
The Missouri Times. (2016). The Six Biggest Issues of 2016. Retrieved from: http://themissouritimes.com/25440/the-6-biggest-issues-of-2016/
Wentzville City. (2015). Final City of Wentzville Economic Development Strategic Plan. Retrieved from: http://www.wentzvillemo.org/document_center/EcDev/Economic%20Development%20Strategic%20Plan.pdf