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FINAL 2019 CEDS Report web optimizedThe regional Comprehensive Economic Development Strategy (CEDS) does not spell out specific bicycle and shared use path infrastructure, but it does identify their importance to the region’s economy (page 40). The Pioneer Valley’s Comprehensive Economic Development Strategy (CEDS) 2019 - 2024 Prepared by Pioneer Valley Planning Commission 60 Congress Street, Floor 1 Springfield, MA 01104-3419 June 2019 Funding for this project was provided through a Partnership Planning Grant awarded by the U.S. Department of Commerce, Economic Development Administration. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page i Acknowledgements This project was funded through a Partnership Planning Grant from the U.S. Department of Commerce Economic Development Administration. The CEDS Plan for Progress Coordinating Council Suzanne Beck, Executive Director, Greater Northampton Chamber of Commerce Debra Boronski, Western MA Regional Director, Massachusetts Office of Business Development Timothy Brennan, Executive Director, Pioneer Valley Planning Commission Ward Caswell, President, Beveridge Family Foundation Jessica Collins, Executive Director, Public Health Institute of Western Massachusetts Patricia Crosby, Executive Director, MassHire Franklin Hampshire Workforce Board Dianne Fuller Doherty, Building Capacity Consultant Linda Dunlavy, Executive Director, Franklin Regional Council of Governments Dan Felten, Board of Directors, Northampton Chamber of Commerce Martha Field, Ph.D., Professor, Economics & Business, Greenfield Community College Brooks Fitch, Consultant Thom Fox, Chief People Officer, Giombetti Associates Jeffrey Hayden, Vice President, Business and Community Services, Holyoke Community College Samalid Hogan, Regional Director, Western Massachusetts Small Business Development Center David Howland, Regional Engineer, Massachusetts Department of Environmental Protection Geoff Little, Consultant Michael Malone, Vice Chancellor for Research and Engagement, University of Massachusetts/Amherst Larry Martin, Director of Employment Services and Engagement, MassHire Hampden County Workforce Board Terence Masterson, Economic Development Director, City of Northampton Laura Masulis, Transformative Development Fellow, MassDevelopment Kevin Maynard, Attorney, Bulkley, Richardson and Gelinas, and Chairman, Leadership Pioneer Valley Russell Peotter, Advisor, WGBY – 57 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page ii Kate Phelon, Executive Director, Greater Westfield Chamber of Commerce Shayvonne Plummer, Senior Project Manager & Brownfield Coordinator, City of Springfield Office of Planning and Economic Development Jessica Roncarati-Howe, Executive Director, Chicopee Chamber of Commerce Christina Royal, Ph.D., President, Holyoke Community College James Shriver, Chairman, Chamber Energy Coalition, Inc. Christopher Sikes, Chief Executive Officer, Common Capital Richard Sullivan, President/CEO, Economic Development Council of Western Massachusetts Oreste Varela, Springfield Branch Manager, U.S. Small Business Administration Mary Walachy, Executive Director, Irene E. & George A. Davis Foundation Lora Wondolowski, Executive Director, Leadership Pioneer Valley David Woods, Consultant Katie Zobel, President, Community Foundation of Western Massachusetts PVPC Staff Lori Tanner, Senior Economic Development Policy/Analyst Molly Goren-Watts, Principal Planner/Manager Allison Curtis, Data Manager and Analyst Todd Zukowski, GIS/Cartographic Section Manager Ray Centeno, Graphic/Web Designer Francesca Cigliano, Data and GIS Intern 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Table of Contents Acknowledgements ........................................................................................................................................ i Executive Summary ....................................................................................................................................... 1 Introduction .................................................................................................................................................. 5 Purpose of the CEDS ................................................................................................................................. 5 Background and Process ........................................................................................................................... 5 Plan for Progress Coordinating Council ................................................................................................ 5 Outreach and Public Participation ........................................................................................................ 5 The Pioneer Valley Planning Commission (PVPC) ................................................................................. 5 EDA Investments in the Region ................................................................................................................. 6 Integration with Other Plans..................................................................................................................... 7 Summary Background ................................................................................................................................. 11 SWOT Analysis............................................................................................................................................. 13 Strategic Action Plan ................................................................................................................................... 23 The Region’s Key Opportunities .......................................................................................................... 24 The Region’s Key Economic Challenges .............................................................................................. 25 CEDS Plan for Progress Goals and Strategies .......................................................................................... 26 Evaluation Framework ................................................................................................................................ 30 Economic Resilience .................................................................................................................................... 44 Appendices .................................................................................................................................................. 45 Appendix A: Public Outreach ...................................................................................................................... 47 Appendix B: Summary Background Data .................................................................................................... 53 The People .......................................................................................................................................... 55 The Economy ....................................................................................................................................... 80 The Infrastructure ............................................................................................................................... 92 Appendix C: Committed Projects in the Region ........................................................................................ 105 Appendix D: Business Survey Results ........................................................................................................ 109 Appendix E: Economic Resilience Planning ............................................................................................... 117 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 1 Executive Summary As a region of 43 vibrant cities and towns that is home to both long-time major employers as well as to thousands of small businesses, and which is the seat of 13 highly regarded colleges and universities, the Pioneer Valley has recovered from the recession, is seeing renewed public and private investment, and has a positive economic outlook. The region is witnessing increased economic activity in its cities and towns as evidenced by construction activity and successful programs to support education, entrepreneurship and career development. Unemployment has declined steadily and rapidly since the recession, in a pattern similar to Massachusetts and the United States overall. However, there is progress still to be made. Our region must retain its residents and employees by providing abundant opportunities for education, training, employment and career growth as well as a consistently high quality of life if the region is to continue to thrive with benefits accruing to all residents. The Pioneer Valley’s Comprehensive Economic Development Strategy (CEDS) serves both as a guiding vision and “blueprint” for the economic growth of the region and as a benchmark with which to measure growth and success. It outlines long-term goals and strategies in four broad areas: Talent, Business Development, Infrastructure, and Collaboration & Engagement. The CEDS Plan for Progress Coordinating Council serves as the region’s “CEDS Committee” and is designed to help guide the CEDS planning process and implementation. Members are drawn from major regional stakeholders, such as the regional employment boards, institutions of higher education, and chambers of commerce, as well as from community leaders and individuals who represent business and civic interests. The CEDS development process also includes a wide range of public outreach and participation opportunities, and these and the Coordinating Council’s efforts are supported by the Pioneer Valley Planning Commission under a planning grant from the U.S. Department of Commerce Economic Development Administration. Research and Public Outreach For this Five-Year CEDS, a review of the region’s demographic and socio-economic trends was conducted (Appendix B); a range of stakeholders were consulted for their input (Appendix A); and a SWOT analysis was undertaken to comprehensively assess the state of the economy (p. 13). The region’s strengths are many and varied, from its location at a major crossroads of southern New England to its 13 colleges and universities and variety of living options from rural and village life to urban downtowns. The region has an extremely strong healthcare sector and at the same time fosters numerous small businesses in fields such as arts, agriculture, technology, and personal services. Many of these businesses, both small and large, are growing due to the improved national economy, increased local investment, and new business mentoring programs, presenting significant opportunities. The potential for continuing increased and improved passenger rail service is another area of opportunity for the region, and growing interest and investment in energy efficiency and clean energy alternatives bodes well for the Valley. However, it is critical that attention is paid to weaknesses and threats as well. The Pioneer Valley remains highly segregated, with low-income residents and communities of color largely separated from 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 2 moderate- to high-income and “white” population areas. The region’s infrastructure continues to deteriorate, despite large improvement projects such as the I-91 Viaduct and numerous upgrades and improvements conducted by individual municipalities. School systems are uneven in quality, and transit services are insufficient. The population has remained stable, with slight growth only because of immigration, while at the same time immigrants are not as welcomed as they should be. Land use policies must be enacted to ensure that more prime farmland and critical natural ecosystems are not lost to “sprawling” development, Small colleges are at risk of financial troubles, given declining enrollment and higher costs. Strategic Action Plan The strategies in this Five-Year Plan are intended to address the region’s most challenging issues. A new Action Plan was created with a dozen specific and detailed action steps outlined as priorities. As a theme throughout these areas, as well as a specific strategy under the Infrastructure goal, economic resilience is emphasized. A further theme and goal is to incorporate collaboration and engagement in each of the objectives. See Table 1 for further details on these objectives. Talent  Facilitate and pursue business and education partnerships that promote career exploration programs for youth, based on existing models (such as Westfield Education and Business Alliance).  Implement educational/career programs that present clear pathways for credential attainment, career mobility, and wage advancement in specific occupational groupings in priority industries.  Improve early childhood education by completing and launching Educare Center in Springfield. Business Growth and Development  Continue to network business support agencies to achieve a more coordinated and streamlined system.  Conduct campaign to market our region to visitors, workers, and businesses. Infrastructure  Advocate for funding to both support and expand current fixed route transit service, e.g. fund the Regional Transit Authorities in fiscal year 2020 with a base of $90.5 million in state contract assistance and increase this amount by an automatic inflator each subsequent year.  Complete East-West Rail Study, including potential scenarios including Palmer, Hilltowns, and Berkshires.  Launch and test north-south pilot rail service to better serve Holyoke, Northampton and Greenfield. Ensure that pilot services are sufficiently utilized by local residents. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 3  Complete broadband last mile to all underserved Pioneer Valley communities with the help of state funding awards.  Expand ValleyBike Share membership and service area to include Chicopee, Hadley and West Springfield including 22 new bike share stations.  Assist all Pioneer Valley towns with Green Communities designations and implementation of energy efficiency projects for municipal buildings.  Help at least 75% of Pioneer Valley communities achieve Municipal Vulnerability Preparedness (MVP) certification from the state. Collaboration and Engagement  Conduct the above activities with inclusion of all, particularly those most immediately affected by the outcomes. Evaluation The CEDS also provides an evaluation system with which to measure regional progress toward the long- term goals of the Plan. The 24 evaluation measures together represent all four of the CEDS Plan for Progress goal areas. This year, the metrics show mixed outcomes in each of the areas. There have been significant improvements in high school graduation rates and workforce training, and unemployment has decreased, as noted above. Gains are still to be made in the levels of early education enrollment; however this data is from 2017 so recent improvements in early education accessibility have not yet been accounted for. In terms of the business environment, the number of employers and jobs has increased slightly; however poverty levels increased, meaning that these improvements have not extended into all communities yet. Regarding infrastructure improvements of all types, the greatest challenges remain transit services, road pavement conditions, and home ownership levels. Other transportation measures have improved, along with levels of affordable housing and pollution reduction. Income inequality has improved somewhat in the Hampden county area but not in Hampshire or Franklin counties. On the positive side, local aid from the state has increased slightly, and leadership program graduation has jumped. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 4 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 5 Introduction Purpose of the CEDS The purpose of the CEDS is multifaceted. It is designed to provide key information to communities, business leaders, nonprofits, regional organizations, civic groups, and other stakeholders for a variety of uses, as well as to provide a “blueprint” for the economic growth of the region. It is also meant to address economic resiliency in the face of potential disruptions to the economic base, whether from a natural disaster or economic downturn. It can be viewed as one of many tools in the region’s economic development toolkit. Background and Process The Comprehensive Economic Development Strategy (CEDS) is a regional planning tool that is updated annually, with a new plan every five years, providing the region with socioeconomic data, background information on the region, economic development strategies, and benchmarks. The Pioneer Valley region was designated an Economic Development District (EDD) in 1999 by the U.S. Department of Commerce Economic Development Administration (EDA), and the Pioneer Valley Planning Commission is the liaison with the EDA. Plan for Progress Coordinating Council The Plan for Progress Coordinating Council serves as the region’s “CEDS Committee” and is designed to help guide the CEDS planning process and implementation. Members are drawn from major regional stakeholders, such as the regional employment boards, institutions of higher education, and chambers of commerce, as well as from community leaders and individuals who represent business and civic interests. Outreach and Public Participation The CEDS development process included a wide range of public outreach and participation opportunities. Details of the findings are included in Appendix A: Public Outreach, and Appendix D: Business Survey. Over the course of late 2018 and early 2019, input was sought from diverse groups throughout the EDD communities regarding economic development needs and opportunities. A business survey was developed and administered to members of two chambers of commerce, and these results are described in detail in Appendix D. The Economic Development Partners, a group representing economic interests in the region, meets monthly and addresses topics of immediate concern to communities and the region. These discussions provided significant insight into the progress of the region as well as new and ongoing challenges. A statewide Rural Policy Advisory Commission that was established in 2015 conducted listening sessions in each region of the Commonwealth in 2018, and results from the Pioneer Valley region session were incorporated into the CEDS. The Pioneer Valley Planning Commission (PVPC) The PVPC provides staff support to the Coordinating Council, conducts public outreach, and prepares the region’s CEDS document. Since 1962, the Commission has been the designated regional planning body for the Pioneer Valley region, which encompasses 43 cities and towns in the Hampden and Hampshire county areas. It is the primary agency responsible for increasing communication, 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 6 cooperation, and coordination among all levels of government as well as the private business and civic sectors in order to benefit the Pioneer Valley region and to improve its residents' quality of life. Although PVPC is a public sector agency, it is not a direct arm of the federal or state governments. Rather, it is a consortium of local governments that have banded together under the provisions of state law to address problems and opportunities that are regional in scope. EDA Investments in the Region On an annual basis the Pioneer Valley Economic Development District, as has been designated by the EDA, solicits proposals from the region for projects that may seek funding under the EDA’s Public Works Economic Development Program. The region has been successful in prior years in receiving substantial EDA funding awards for projects that create jobs and stimulate private investment in economically distressed communities of the Pioneer Valley region. Among these awards and accomplishments are the following:  The Town of Ludlow was awarded $3.1 million in 2018 for the Riverside Drive Infrastructure Project at Ludlow Mills, to access a vacant, shovel-ready portion of the property for light industrial development.  DevelopSpringfield was awarded $1.1 million in 2017 to develop the WorkHub at 77 Maple, involving restoration of an historic building in Springfield as an incubator for small businesses.  In 2016, Holyoke Community College was awarded $1.55 million for the renovation of the existing Cubit Building in Holyoke’s Innovation District to establish the Center for Hospitality and Culinary Excellence, a state-of-the-art workforce training facility.  In 2014, the City of Springfield was awarded $1.3 million for the Springfield Job Creation/Technical Training Facility, an 11,400-square-foot facility that provides space to conduct work skills training in the precision manufacturing and construction trades industry.  In 2011, the Holyoke Gas & Electric Company was awarded $2.1 million for hydroelectric infrastructure improvements that will support the development of the Holyoke Innovation District anchored by the Massachusetts Green High Performance Computing Center.  In 2011, EDA awarded the Caring Health Center in Springfield $500,000 for a new community health center in downtown Springfield, in renovated historic buildings.  In 2010, the Western Massachusetts Enterprise Fund was awarded $500,000 from the EDA towards a Western Massachusetts Revolving Loan Fund.  In 2008, EDA awarded the City of Northampton and MassDevelopment $750,000 for the Village at Hospital Hill Business Park, a redevelopment of a former state hospital site.  In 2006, EDA awarded $1.6 million to the City of Holyoke for creation of the Crossroads Industrial Park Roadway (Kelly Drive). 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 7  Also in 2006, EDA awarded the City of Springfield $1 million for the Memorial Industrial Park II project adjacent to the Smith and Wesson facilities.  In 2002, Holyoke Health Center and Medical Mall was awarded a $1 million grant by EDA to complete Phase II of the project.  In 2001, STCC received the EDA’s National Award for Excellence in Urban Economic Development.  In 1999, the EDA awarded $700,000 for the Latino Professional Office Center in Holyoke. In the upcoming 12-18 months, the following projects are proposed to potentially pursue EDA Public Works funds: Community Project Name Project Type Total Est. Project Cost # Perm. Jobs Created Belchertown Carriage Grove Industrial Area Redevelopment of former Belchertown State School $1 million 50 Chicopee Westover Air Park South Infrastructure improvements for 88-acre industrial park $6 million 2,000 Chicopee Rivermills at Chicopee Falls Redevelopment of brownfields as mixed- use neighborhood $25 million 50-100 Holyoke South Holyoke Redevelopment Commercial, residential and infrastructure development TBD TBD Holyoke Whiting Farms Road – Parcel B Infrastructure improvements to assist with commercial development TBD TBD Holyoke Victory Theater Redevelopment of downtown historic theater for cultural & commercial uses $43 million TBD Integration with Other Plans The 2019 CEDS is coordinated and aligned with a wide range of other recently established regional plans. Among these are the following: Pioneer Valley Labor Market Blueprint: A Regional Planning Initiative of the Massachusetts Workforce Skills Cabinet. Franklin Hampshire Regional Employment Board and Regional Employment Board of Hampden County, Inc., 2018. (Note: the Regional Employment Boards are now known as MassHire) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 8 2020 Regional Transportation Plan. Currently under development by the Pioneer Valley Planning Commission for the Pioneer Valley Metropolitan Planning Organization (MPO), to be completed July 2019. Our Next Future: An Action Plan for Building a Smart, Sustainable and Resilient Pioneer Valley. Pioneer Valley Planning Commission with support of U.S. Department of Housing and Urban Development Sustainable Communities Initiative Regional Planning Grant Program, 2014. Pioneer Valley Climate Action and Clean Energy Plan. Pioneer Valley Planning Commission with support of U.S. Department of Housing and Urban Development Sustainable Communities Initiative Regional Planning Grant Program, 2014. Westover Air Reserve Base Joint Land Use Study. Pioneer Valley Planning Commission with support of the Department of Defense Office of Economic Adjustment, 2018. A Massachusetts Rural Policy Plan is being prepared by the Governor’s Rural Policy Advisory Commission, based on research and public input throughout the Commonwealth including the Pioneer Valley. The plan will be completed in 2019. These plans were developed by and in conjunction with Plan for Progress partners and have informed and been informed by the Plan and the annual CEDS updates. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 9 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 10 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 11 Summary Background The Pioneer Valley Region is maintaining steady economic growth amidst an uncertain national and international economic backdrop. The region’s cities, particularly Springfield, are seeing significant new investment, including from large new employers including MGM Springfield and the China Railroad Rolling Stock Corporation (CRRC), as well as developers revitalizing centuries-old mill buildings or building new on former brownfields. Other parts of the region are also experiencing a strong period of growth and business confidence not seen since before the 2008 recession, including downtown revitalization in several of the region’s smaller population centers. A list of major projects currently under way in the region can be found In Appendix C. These investments are spurring workforce and training efforts (such as Holyoke’s recently completed HCC MGM Culinary Institute and the Springfield- based Gaming Training Institute) as well as tapping greater numbers and quantities of local products and services. A recent Baker-Polito Administration-sponsored and supported regional Workforce Development Blueprint1 involving our region’s Workforce Investment Boards found that the top three industries most important to the region’s economic success are: 1) Health Care and Social Assistance 2) Educational Services 3) Advanced Manufacturing Other critical industry sectors are:  Finance and Insurance  Professional, Scientific, and Technical Services  Accommodation and Food Services  Agriculture and Sustainable Food Systems These industry sectors have dominated for about the past two decades, with Agriculture and Sustainable Food Systems re-emerging and growing with value-added manufacturing processing, distribution, serving and selling, as well as managing food waste, animal care, and farm and nursery management. Gaming-related occupations are brand new to the region and expected to remain steady. The casino and associated hotel and other activities have increased demand for workers in food preparation and serving, as well. Cross-industry occupations include:  IT-related  Professional Services 1 Pioneer Valley Labor Market Blueprint: A Regional Planning Initiative of the Massachusetts Workforce Skills Cabinet. Franklin Hampshire Regional Employment Board and Regional Employment Board of Hampden County, Inc., 2018. (Note: the Regional Employment Boards are now known as MassHire) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 12  Back Office Administrative Support  Logistics and Transportation  Trades The strategies in this Five-Year Plan are intended to address the region’s most challenging issues. For instance, the region’s overall population has increased only modestly over the past two decades, and there is population decline in some of the rural towns. In fact, for the past 25 years, with the exception of only two years (2002-3) there has been a net out-migration every year from the Pioneer Valley. If not for in-migration of Puerto Rican residents of the United States and immigration of foreign-born immigrants from a wide range of countries, the population of our region would have declined overall, resulting in reduced state and federal funding for education and other services, diminished interest from potential employers, and a stagnant economy. Additionally, the level of poverty remains high in the Pioneer Valley, with a rate of 16.3% versus 11.1% for Massachusetts. Poverty is also drastically different across racial categories. While the overall poverty rate in the region is 16.3%, the poverty rate in the Hispanic and Latino community is nearly twice that rate, at 38.7%, and the poverty rate is over twice as high for Black residents as it is for White residents (22.7% and 9.3% respectively). These disparities must be reduced and eventually eliminated if the region is to experience true economic success. Socio-economic data and a detailed analysis of the region’s economy is included in Appendix B. Based on the data from the past decade or more; current public outreach conducted for this report; and related economic plans at the local, regional and state level, the following SWOT Analysis (Strengths, Weaknesses, Opportunities and Threats) examines the region’s economy in depth as a foundation for the 2019 CEDS goals and objectives. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 13 SWOT Analysis The following section analyzes the Strengths, Weaknesses, Opportunities and Threats within and facing the Pioneer Valley region.  Strategic location at the crossroads of southern New England.  Affordable cost structure for businesses and residents alike.  Scenic beauty, historic character, and outdoor recreational resources make the region a highly desirable place to live, work and play.  Variety of living options from urban and suburban to small-town and secluded rural locations.  Growing number of employers, particularly small enterprises.  Improved high school graduation rates in the urban core.  Coordinated workforce development system with new Pioneer Valley Workforce Development Blueprint; the Blueprint has state level support and will guide future state investments in workforce development programs.  Downtown revitalization in region’s economic capital of Springfield. There is new/renewed interest in downtown Springfield real estate with major new investment and an increased critical mass downtown including Innovation District (especially Bridge Street) and the South End (MGM mixed use development).  A diverse range of higher educational institutions, from community colleges to small liberal arts colleges and large universities.  Increased and improved north-south rail service; new Hartford Rail Line serves Springfield to New Haven with trains every 45 minutes Strengths (Region’s competitive advantages) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 14  Culture of innovation with a long history of inventions and enterprising activities.  Major new employers – MGM Springfield opened in 2018 with 3,000 employees; the CRRC rail- car manufacturing plant opened in 2017 and by late 2018 had approximately 240 employees.  Expansion of MassMutual – The company consolidated its headquarters in Springfield, invested $50 million in improvements, and plans to add 1,500 new jobs within several years.  Major investments in new or expanded facilities by existing employers including U.S. Tsubaki, HP Hood, Agri-Mark, J. Polep, area universities and colleges, and Baystate Health (see list of committed projects in Appendix C).  New early education programs are available and being developed. The MGM Head Start Child and Family Center is a LEED Platinum-certified green building with 20 employees and serves 88 children. Educare Springfield, a nationally recognized pre-school model that is among just 24 of its kind in the country is slated to open in late 2019.  New tourism draws – MGM Springfield, Dr. Seuss Museum, Gateway City Arts in Holyoke, Pulaski Park in Northampton, Mill 180 in Easthampton, renovated Basketball Hall of Fame, and annual additions to Six Flags New England. There have also been increases in attendance at the Big E, Holyoke Parade, Springfield Museums in general, and the Basketball Hall of Fame as well as general increases in tourism in the region according to the MA Office of Travel and Tourism.  Downtown revitalization occurring throughout region in addition to the urban core, including ongoing mill redevelopments in Easthampton; new development in Amherst Center and North Amherst; and two new residential/mixed use developments and Pulaski Park in Northampton.  Successful Federal Reserve Bank Working Cities Challenge projects in Springfield and Holyoke. In Springfield, the SpringfieldWORKS program is a collaboration of diverse entities to connect potential workers with employers as well as training opportunities, while SPARK EforAll Holyoke is working to help accelerate economic and social impact through entrepreneurship.  Valley Venture Mentors program – The program is extremely successful and has expanded from a small grassroots nonprofit to an organization with over a thousand community advisors who’ve provided key assistance to more than two hundred startups. Those startups in turn have generated more than $50 million in revenue and investment.  Community colleges are increasingly involved and collaborating in workforce training efforts including Adult Basic Education and English for Speakers of Other Languages.  Broadband has been extended to nearly all communities in the region and is in the process of reaching the final few rural towns.  Two major military bases in the region: Westover Air Reserve Base in Chicopee and the Barnes Air National Guard Base in Westfield employ significant numbers and have a positive economic impact.  Interstate 91 viaduct through Springfield has been repaired, with improved access ramps. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 15  Three institutions of higher education have located branches in downtown Springfield in the past several years, including Cambridge College, UMass, and Bay Path University’s American Women’s College.  The Holyoke Community College/ MGM Center for Culinary Arts opened in Holyoke in 2018 and serves as a pipeline for future chefs, bakers, restaurateurs, caterers, and culinary instructors in the region. MGM alone has hired hundreds of culinary staff and food service workers.  Union Station multimodal transportation center and new train stations in Holyoke and Northampton provide enhanced train and transit services along the Amtrak corridor.  Rapid increase in number of co-working spaces throughout the region.  The Wellspring Cooperative Corporation (WCC) has developed Springfield’s first commercial hydroponic greenhouse and an upholstery repair business; the businesses serve major institutions including Baystate Medical Center and UMass.  New England Knowledge Corridor Partnership – this interstate partnership fosters collaboration across the Massachusetts/Connecticut state line, encompassing the anchor cities of Springfield, Hartford and New Haven.  Leadership programs are graduating a new generation of community leaders. Programs include Leadership Pioneer Valley, Leadership Institute for Political and Public Impact (LIPPI), and local chamber of commerce programs in Springfield and Holyoke.  New regional bike-share program with electric-assisted bicycles began in five communities: Springfield, South Hadley, Holyoke, Amherst, and Northampton. It will be expanding into Easthampton in 2019.  Ludlow Mills redevelopment is well underway, with Encompass Health Rehabilitation Hospital (formerly HealthSouth), new market-rate housing, planned senior housing, planned Riverside Drive accessing an available industrial parcel, and the publicly accessible Riverwalk.  Solar photovoltaic installations have increased, both residential and commercial. As more of the region’s communities are certified as Green Communities, they are using the available state funding for energy efficiency and solar installations.  Healing Racism Institute of Pioneer Valley offers an ongoing successful program that has worked with school systems, police departments, and other institutions and individuals.  Successful local agriculture due to good soils, relative lack of pollution.  Successful past and ongoing efforts to eliminate wastewater pollution in Connecticut River.  Significant progress of disaster preparedness planning and municipal vulnerability plan certification.  Bradley International Airport, the second largest airport in New England, is within an hour of most Pioneer Valley region communities. The airport offers numerous air carriers and flights including a transatlantic link to Ireland with connections to Europe. The airport has modernized 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 16 its facilities and increased non-stop flights, resulting in passenger growth of 23% over the past six years. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 17  Shortage of educated, skilled workers for the available jobs.  Shortage of local farmworkers to support the local agricultural economy, requiring dependence on temporary/seasonal immigrants with special visas that are difficult to obtain.  Insufficient support infrastructure for workers, including transit services, childcare, and housing.  Continued high poverty rates and poor health outcomes, especially in the region’s urban core.  Still-evolving region-wide system of services for businesses including start-ups and entrepreneurs.  Several urban core schools remain underperforming; graduation rates remain below desired level.  Continued deterioration of the region’s infrastructure assets including roads and bridges, public water and sewer lines, wastewater treatment facilities, and historic buildings.  Continued lack of high-speed broadband service in several rural communities (11 in Pioneer Valley region)  Insufficient public transit services, particularly for older adults, persons with limited incomes, and people with disabilities that prohibit driving.  Loss of population in some rural areas, particularly where there is limited high-speed internet service.  Low population growth throughout the region.  Limited inventory of “shovel-ready” industrial land, particularly larger parcels.  Existing land use practices combined with a lack of sufficient water-management infrastructure makes many communities vulnerable to flooding during and after major storms. Weaknesses (Region’s relative competitive disadvantages) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 18  Energy challenges: limited supply and distribution capacity for natural gas plus relatively high electricity costs. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 19  Positive momentum created by a critical mass of growth, investments and interest in region’s central city of Springfield – “unlike anything seen in decades” according to the region’s business publication, BusinessWest (December 2018).  Major new employers and expansions with potential for regional job multiplier effects including enhanced supply chain. Large companies in the region utilize goods and services from numerous local businesses, and their employees also patronize local businesses.  Pilot of expanded north-south passenger rail service targeted for summer 2019; if the service is sufficiently utilized after a two-year trial it will become permanent.  New East-West Rail study under way with 31-member advisory committee; the study is due by the end of 2019.  Real estate market showing signs of growth, including higher numbers of inquiries, showings, leases and sales.  Burgeoning agriculture and sustainable food systems ecosystem.  Incremental growth of small and medium sized enterprises and emergence of new startups.  Enhanced marketing of the region would draw more visitors, residents and businesses.  The cannabis industry may provide economic benefits to local municipalities and provide jobs.  State-designated and federally approved “Opportunity Zones” offer revitalization potential but have yet to be utilized.  Pioneer Valley communities that are now state-designated “Green Communities” have access to state funding to implement energy efficiency and clean energy upgrades.  Expanding network of bicycle and pedestrian routes and trails that contribute to the region’s attractiveness and livability. Opportunities (Potential positive impacts) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 20  Coordinated policies and investments in areas of land use, economic development, housing and transportation that can support a dynamic and competitive region. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 21  Loss of population in rural areas; towns struggling to maintain services and meet budget needs; deteriorating infrastructure.  Potential for undercounting in 2020 Census.  Loss of prime farmland and forest to solar projects and other forms of development.  Negative impacts of reduced transit services on seniors, individuals with disabilities, and low- income workers.  Effects of import tariffs on local companies, particularly precision manufacturers and others that provide links in the supply chains of industries affected by steel and aluminum tariffs; and also including CRRC.  Financial challenges for small liberal arts colleges in New England, recently evidenced locally at Hampshire College, which is seeking a merger partner.  Cannabis industry could potentially have some negative impacts.  The new gaming industry could potentially have negative impacts such as increased gambling addiction.  Lack of desired population growth due to intensifying federal controls on immigration.  Antiquated formula for education assistance to public schools and school districts.  Loss of markets for recycled material which, in turn, is depleting a source of local revenue.  Climate change and resulting vulnerabilities that have been linked to Greenhouse Gas (GHG) emissions, particularly from the transportation sector.  Significant levels of poverty still concentrated in the Pioneer Valley’s urban core. Threats (Potential negative impacts from external factors) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 22  Declining college enrollment which can adversely impact the region’s higher education institutions, especially the smaller private colleges.  A national opioid epidemic which in Massachusetts has elevated the opioid-related death rate to surpass the national average with over 23 fatal overdoses for every 100,000 Massachusetts residents. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 23 Strategic Action Plan The 2019 CEDS sets forth a vision of: A strong, innovative, engaging, and vibrant economy and quality of life that fosters prosperity and sustainability and is driven by collaborative leadership. This vision is expressed through four major goal areas, each with its own set of strategies and tangible action steps to guide the plan’s implementation. In addition, six top priorities for the region are laid out. All of the strategies are meant to be periodically revised in order to meet the region’s changing economic needs, conditions, and circumstances. This plan examines the goals and strategies and lays out new areas of focus as well as a dozen specific action steps for the next five years. 2019 Pioneer Valley Comprehensive Economic Development Strategy Page 24 The Region’s Key Opportunities Over the decade encompassing 2015-2025, the Pioneer Valley will steadfastly pursue its most promising economic opportunities in the following ways: 1) Leverage New Connections That Significantly Enhance the Region’s Economic Competitiveness Work in concert with government leaders and agencies at all levels, along with the region’s business and civic sectors, to complete the reconstruction, reactivation and service expansions along the Pioneer Valley’s principal north-south (Knowledge Corridor) and east-west (Inland Route) rail corridors to accommodate both passenger and freight traffic. Simultaneously tackle the remaining “last mile” phase required to build out western Massachusetts’ new, “middle mile” high-speed broadband network, thereby allowing the Pioneer Valley to realize the full range of potential economic and job creation benefits while ensuring a favorable return on this substantial investment of public funds. 2) Lead the Commonwealth’s Clean Energy Transformation While Moving the Region Toward a Balanced and Diversified Energy Portfolio Maintain the Pioneer Valley’s efforts to lead multifaceted efforts by the Commonwealth to significantly reduce our heavy reliance on fossil fuels and accelerate the region’s transition to emerging clean energy sources, broadly employing energy conservation measures and technologies, and overall fostering the creation of a far more balanced, diversified, reliable and affordable energy supply portfolio to support the Pioneer Valley and its regional economy. More specifically, by 2025 strive to achieve parallel goals of: a) realizing over 600 million kWh of new clean energy generation coupled with a cut of 3.2 metric tons of Greenhouse Gas (GHG) emissions emanating from Pioneer Valley sources, and b) growing our clean energy industry, which has approximately 500 establishments and 7,000 workers, as a region-specific initiative that is consistent with the most recent Massachusetts Clean Energy and Climate Plan. 3) Harness the Economic Development Potential of the New England Knowledge Corridor Realize and tap the impressive and wide range of economic attributes and assets concentrated in the interstate New England Knowledge Corridor (NEKC) encompassing the Greater Springfield, Hartford and New Haven metropolitan areas, an economic region which boasts a population of nearly 3 million; a workforce of more than 1.25 million; 215,000 college students enrolled in 41 colleges and universities; and in excess of 64,000 businesses; thereby making the NEKC the 20th largest market in our nation. Correspondingly, utilize the NEKC with its combination of academic power, strategic location, high productivity workforce and innovative talent pool to elevate the NEKC’s visibility, reputation and combined strength to participate and successfully compete in a global marketplace where critical mass, thought leadership, workforce talent and the ability to collaborate are now essential to achieving sustained economic progress. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 25 The Region’s Key Economic Challenges Over the decade encompassing 2015-2025, the Pioneer Valley will act to address its most pressing economic challenges by addressing: 1) Talent Pool and Pipeline Challenges Pursue a broad array of policy reforms and aggressive program initiatives and interventions that work together to identify and implement actions that both retain and expand the Pioneer Valley’s supply of educated, skilled workers by a target of +6% or the equivalent of 25,000 workers, while also striving to mitigate adverse impacts to the region’s higher education, manufacturing, health care and technology clusters. Critical to this effort is the improvement of educational outcomes and graduation rates in the region’s public school systems, particularly in the urban core’s distressed cities. 2) Fragile Infrastructure Systems Invest and leverage limited federal, state and local financial resources, as well as public-private partnerships where possible, in order to address and resolve an ever-expanding list of the region’s critical infrastructure system needs and deficiencies (e.g. roadway, transit, bridge, rail, water and sewer, etc.). Simultaneously advocate for increased and multi-year infrastructure funding commitments by the federal and state governments that are at levels of investment commensurate with maintaining all forms of the Pioneer Valley public infrastructure in a state of good repair. 3) Retention and Growth of Existing Businesses Proactively respond to the critical importance of small and mid-sized enterprises to the Pioneer Valley economy’s strength, vitality and potential for long-term jobs growth by enhancing the system of business support services provided to them and developing new and more flexible sources of growth capital. Provide these services in a way that is highly visible, accessible, coordinated and aligned with the needs of those small and mid-sized firms that demonstrate the potential to innovate, create and grow. As part of this effort, enhance supply chain and vendor opportunities for existing Pioneer Valley businesses, with special attention to connections with new major employers in the region. 2019 Pioneer Valley Comprehensive Economic Development Strategy Page 26 CEDS Plan for Progress Goals and Strategies To achieve the Plan’s vision and address its top challenges and opportunities, the CEDS Plan for Progress sets forth the following four major goals, each of which includes a set of detailed strategies, with short- and long-term action steps. Plan for Progress implementers will: Strategy #1: Strengthen Regional Engagement and Coordination in Talent Development Initiatives Strategy #2: Make the Implementation of High Quality Early Education an Essential Element of the Region’s Economic Development Strategy #3: Improve K-12 High School and Vocational School Achievement and Graduation Rates Strategy #4: Improve Community and Four-Year College Programs and Graduation Rates Strategy #5: Enhance Career and Workforce Training Strategy #1: Retain, Attract, and Grow Businesses and Priority Clusters Strategy #2: Advocate Efficient Regulatory Processes at All Levels of Government Strategy #3: Market Our Region 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 27 Strategy #1: Enhance High-Tech and Conventional Infrastructure Strategy #2: Increase Use of Clean Energy to Reduce Business Costs and Improve the Environment Strategy #3: Enhance Regional Approaches to Public Safety, Public Health and Disaster Resilience Strategy #4: Develop an Array of Housing Options that Foster Economic Competitiveness Strategy #5: Revitalize and Protect the Connecticut River and its Watershed Strategy #1: Foster Equity and Economic Opportunity through Public Policy Decisions, Educational Opportunities and Advocacy Strategy #2: Engage, Convene and Collaborate with Diverse Groups to Maximize Regional Success The 2019 CEDS Five-Year Action Plan designates a limited number of prioritized action steps, identified in Table 1. Table 1: A Dozen Top Objectives for 2019-2024 Goal Area Project Time Frame – Short or Long-Term Lead Implementers Infrastructure/ Transportation Advocate for funding to both support and expand current fixed route transit service, e.g. fund the Regional Transit Authorities in fiscal year 2020 with a base of $90.5 million in state contract assistance and increase this amount by an automatic inflator each subsequent year. Short-Term: By 2020 Regional Transit Authorities Regional Planning Agencies MassDOT Business Growth Continue to network business support agencies to achieve a more coordinated and streamlined system. Medium-Term: By 2022 MA Small Business Development Center Valley Venture Mentors EDC of Western Massachusetts EforAll Holyoke Talent Facilitate and pursue business and education partnerships that promote career exploration programs for youth, based on existing models (such as Westfield Education and Business Alliance). Long-Term: By 2024 Pioneer Valley Planning Commission Davis Foundation MassHire agencies Infrastructure/ Transportation Complete East-West Rail Study, including potential scenarios including Palmer, Hilltowns, and Berkshires. Short-Term: By 2020 MassDOT with Advisory Council Infrastructure/ Transportation Launch and test north-south pilot rail service to better serve Holyoke, Northampton and Greenfield. Ensure that pilot services are sufficiently utilized by local residents. Short-Term: By 2021 MassDOT Trains in the Valley EDC of Western MA Pioneer Valley Planning Commission Business Growth Conduct campaign to market our region to visitors, workers, and businesses. Short-Term: By 2021 EDC of Western Massachusetts Greater Springfield Convention and Visitors Bureau Hampshire County Regional Tourism Council Page 28 Goal Area Project Time Frame – Short or Long-Term Lead Implementers Talent Implement educational/career programs that present clear pathways for credential attainment, career mobility, and wage advancement in specific occupational groupings in priority industries. Short-Term: By 2020 Massachusetts Workforce Skills Cabinet Regional partners MassHire agencies Colleges Talent Early childhood education – Complete and launch Educare Center in Springfield. Short-Term: By 2020 Davis Foundation City of Springfield Infrastructure/ Communication Complete broadband last mile to all underserved Pioneer Valley communities with the help of state funding awards. Short-Term: By 2021 Massachusetts Broadband Institute Municipalities Franklin Regional Council of Governments Infrastructure/ Energy Expand ValleyBike Share membership and service area to include Chicopee, Hadley and West Springfield including 22 new bike share stations. Short-Term: By 2021 Municipalities UMass Amherst Pioneer Valley Metropolitan Planning Organization Infrastructure/ Energy Assist all Pioneer Valley towns with Green Communities designations and implementation of energy efficiency projects for municipal buildings. Medium-Term: By 2022 Pioneer Valley Planning Commission Municipalities Infrastructure/ Disaster Resilience Help at least 75% of Pioneer Valley communities achieve Municipal Vulnerability Preparedness (MVP) certification from the state. Short-Term: By 2021 Pioneer Valley Planning Commission Municipalities Designated lead implementers for each of the objectives above will develop or follow their own detailed plans. Funding sources and methods will be determined by the entities involved.Page 29 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 30 Evaluation Framework Summary The CEDS Plan for Progress Performance Indicators are a set of quantitative benchmarks that assist in identifying economic trends and measuring progress towards the goals of the Pioneer Valley Plan for Progress. In order to provide a highly objective, measurable method of accountability, this quantitative system complements the qualitative assessments discussed above. The system does not attempt to evaluate current year statistics in isolation (e.g. judging whether a specific unemployment rate is “good” or “bad”), but rather looks at changes over time and the general trend, indicating whether a situation is improving or not (e.g. observing whether the unemployment rate is increasing or decreasing). This evaluation section includes a chart of all performance indicators with the current and previous data as well as the percent change in data and the rating that this change warranted. Following this chart is a list of all the performance indicators organized by strategy grouping with a summary of the data and data source for each indicator. Page 31 Rating Scale Each indicator was assigned a rating of positive, negative, or neutral, based on the most recent annual trend in the data available. Once benchmark data was collected for the most recent year available, Pioneer Valley Planning Commission (PVPC) staff calculated percentage changes from one year prior (or the most recent previous year possible if prior year data is not available). An improvement of at least one percent is considered a positive trend, while a decline of at least one percent is considered a negative trend. Between one percent improvement and a one percent decline is considered a neutral trend. Positive Trend More than a 1% change in a positive direction. Neutral Trend Less than a 1% change in any direction. Negative Trend More than a 1% change in a negative direction Regional Geography Because we are partnering with our neighbors to the north in Franklin County on these indicators, ratings for each indicator represent the current trend for the greater Pioneer Valley which includes Hampden, Hampshire, and Franklin counties. This evaluation section includes a chart of all performance indicators with the current and previous data as well as the percent change in data and the rating that this change warranted. Following this chart is a list of all the performance indicators organized by major goal area with a summary of the data and data source for each indicator. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Goal #1: Develop and maintain a globally competitive and regionally engaged talent pool. Measure Indicator Prior Data Year Current Data Year Annual Change Rating Early Education Enrollment Enrollment In Early Education/Preschool Programs For 3 &4 Year Olds 52.9% 2016 50.4% 2017 -4.7% 3rd Grade Reading Proficiency MCAS 3rd Grade Reading Proficiency 49.80% 2014 NA NA no trend High School Graduation Rate 5 Year High School Graduation Rate 82.52% 2016 90.41% 2017 9.6% Community College Graduates # Of Graduates From Community Colleges in Region 2,153 2017 1,800 2018 -1.6% Educational Attainment Of Workforce % Of Workforce 25 And Older With 4 Year Degree 31.7% 2016 32.8% 2017 3.6% Workforce Training Participation # Of People Served By Workforce Training Programs 7,836 FY2017 8,056 FY2018 2.8% Unemployment Unemployment Rate 4.4% 2017 4.0% 2018 -9.1% Goal #2: Foster an environment where established, new, and growing businesses and organizations thrive Measure Indicator Prior Data Year Current Data Year Annual Change Rating Employers Total Establishments 25,549 2016 25,614 2017 0.3% Jobs Total Jobs 297,871 2016 300,482 2017 0.9% l Sites Ready For Development # Of Pre-Permitted Sites 7 2016 6 2019 -14.3% Low Income and Poverty % Of Population With Income Below 200% Of Poverty Line 30.9% 2016 31.3% 2017 1.4% Notes: *Road Pavement Conditions only include Hampshire and Hampden Counties. Comparable data not available for Franklin County. Income Inequality is measured by the Gini coefficient and ranges from 0 to 1. Numbers closer to one indicate more income inequality Continued on next page. Pioneer Valley Plan for Progress Performance Indicators - Pioneer Valley (3 Counties) Page 32 Goal #3: Implement and enhance the infrastructure that connects, sustains, and ensures the safety and resiliency of the regio n and its economy. Measure Indicator Prior Data Year Current Data Year Annual Change Rating High Speed Internet % Of Communities/Population With Access To Broadband/High Speed Internet (25 MPS Download) 94.04 2016 94.96 2017 0.5% l Bridge Conditions # Of Structurally Deficient Bridges 97 2015 95 2018 2.1% Road Pavement Conditions** Overall Condition Index (OCI) 77.6 2011 65.6 2015 -3.9% Bike Infrastructure Completed Bike Facility Mileage 104.3 2018 112.8 2019 8.2% Transportation + Housing Costs Combined Transportation And Housing Costs As A Percent Of Income N/A N/A 52% 2008- 2012 NA no trend Affordable Housing # Of Communities Meeting 10% Affordable Housing Threshold 8 2017 9 2018 12.5% Home Ownership % Of Housing Units That Are Owner Occupied 63.62% 2016 61.69% 2017 -3.0% Combined Sewer Overflow Reductions Total # Of CSOs Feeding Into The CT River Or Its Tributaries 59 2016 57 2018 -3.4% Goal #4: Conduct economic development activities in a regionally responsible manner, prioritizing collaboration and engagemen t. Measure Indicator Prior Data Year Current Data Year Annual Change Rating Income Inequality (Gini Coefficient) Gini Coefficient Of Income Inequality Hampden County 0.452 2016 0.489 2017 8.1% Hampshire County 0.464 2016 0.437 2017 -5.7% Franklin County 0.463 2016 0.453 2017 -2.0% State Funding - Non-School Local Aid Statewide Non-School Local Aid Per Capita That Goes To The Region $232.46 FY2018 $240.91 FY2019 3.6% Leadership Program Participation # Of Graduates From All Leadership Programs In The Region 85 2017 97 2018 14.1% Registered Voters Voter Participation Rates 85.26% 2016 84.48% 2018 -0.5% Pioneer Valley Plan for Progress Performance Indicators (Continued) - Pioneer Valley (3 Counties) Page 33 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 34 Goal #1: Develop and Maintain a Globally Competitive and Regionally Engaged Talent Pool Early Education Enrollment Early childhood education helps provide the opportunities necessary for positive development at this young and critical age. It is now supported by extensive research that a high quality early childhood education experience has significant long-term effects on a person’s life outcomes ranging from their achievement in K-12 school, their economic success, or the probability that they will be involved in the juvenile justice system. Early childhood education is now recognized as a critical early phase of the cradle-to-career pipeline that takes a comprehensive, long-term view of workforce and economic development. The percent of all 3- and 4-year olds who are enrolled in any type of formal early education program (public, private, family child care, center-based preschool) is examined in this indicator. Between 2016 and 2017 the percent of children enrolled in early childhood education programs decreased at a rate of 4.7% across the Pioneer Valley. Hampden county saw a decrease of 13.4%, while in Franklin County, the percentage decreased by nearly 55%. Hampshire County saw an increase in 34.5%. It is important to note that these data points are estimates based on a sample of the population, and there are margins of error associated with them. In this particular case, the margins of error for all three counties are particularly large, so it’s quite possible that, while there was likely a decrease in enrollment in Hampshire and Hampden Counties, and an increase in Franklin County, it was not necessarily of the dramatic extreme that these estimates suggest. Source: U.S. Census Bureau, American Community Survey 1-Year-Estimates 3rd Grade Reading Proficiency In an educational environment increasingly requiring quantitative measures of achievement and accountability, scores from standardized tests are used to “identify the strengths and weaknesses in curriculum and instruction” at the local level and to hold schools and school districts accountable with respect to “established standards for performance for districts that improve or fail to improve student academic performance.”* Educational development standards indicate that students should be able to read proficiently by the end of third grade, that is, have a wide vocabulary, comprehend, write logically, speak coherently, read fluently and understand different types of texts. Beginning in fourth grade, all these skills are necessary for them to progress with more challenging work. Previously, the percent of all children in the third grade who received a score of “proficient” or higher on the MCAS English language arts test was used to reflect early literacy skills achieved during formal early childhood education. However, to further align testing with Common Core Standards, in 2015 the Massachusetts Board of Elementary and Secondary Education began administering a new test called the Partnership for Assessment of Readiness for College and Careers (PARCC). This transition from MCAS to PARCC is an ongoing process. Although many school districts are now using this test, some are continuing to use an updated version of the MCAS, which includes only some elements of the PARCC. These changes make data difficult to compare not only from year-to-year but also between communities. Thus, this indicator is not included for this year, but will be included in future reports. ** In 2014, some third-grade students in the region took the PARCC test rather than the MCAS test. Only MCAS score results are presented in this report (thus, the sample size in 2014 is smaller than it is for 2013.) Source: MA Department of Elementary and Secondary Education (DESE) Trend Rating -4.7% Trend Rating Trend Data Not Available 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 35 High School Graduation Rate High school graduation rates are a vital component in assessing the status of individuals and communities because educational attainment has a strong influence on future work and earning potential as well as the ability to constructively contribute to one’s community. Graduating from high school has become a minimum requirement for participation in most of our nation’s economy. The percent of all students enrolled in grades nine through twelve who graduate within 5 years or less is measured in this indicator. The rate is adjusted for students who transfer in or out of the schools, and thus measures only those students who began at a given school and graduated from that same school. Across the region, there was an increase of 9.6 percent in graduation rates between 2016 and 2017. All three counties experienced an increase in graduation rate. The urban core cities of Springfield and Holyoke experienced an increase of 17.9% and 25.4%, respectively. Source: MA Department of Elementary and Secondary Education Community College Graduates Most of today’s well paying jobs require a credential beyond a high school degree. Associate’s degrees and/or certificates are the most accessible and promising route to a job with a living wage and a genuine career path for many. This indicator measures the number of people in the who complete an associate's degree in a given academic year at one of the three community colleges in the region - Greenfield Community College, Holyoke Community College and Springfield Technical Community College. Between 2017 and 2018 the number of community college graduates in the Pioneer Valley decreased by about 1.6%. Source: Directors of Institutional Research at Holyoke Community College, Springfield Technical Community College, Greenfield Community College Educational Attainment of the Workforce Higher education is increasingly necessary for long-term access to well- paying jobs. The extent of educational attainment, therefore, is indicative of a population’s ability to function and excel economically and an individual’s economic and social opportunities in life. While two- year associate’s degrees meet the needs of many positions, the bachelor’s degree is rapidly becoming a requirement for even some entry-level positions. Because a solid educational background, typically achieved during high school, is a prerequisite for getting a bachelor’s degree, this indicator also measures a community’s ability to prepare their children for college. This indicator measures the percent of the population over the age of 25 with a bachelor’s degree or higher. Across the region, attainment of bachelor’s degrees remained fairly neutral, increasing slightly from 31.7% to 32.8% between 2016 and 2017. Hampden County and Hampshire County experienced increases of 3.2% and 3.3% respectively, while Hampshire County experienced an increase of 6.7%. Source: U.S. Census Bureau, American Community Survey 1-Year-Estimates Trend Rating 9.6% Trend Rating -1.6% Trend Rating 3.6% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 36 Workforce Training Participation Not all jobs require a bachelor’s degree to be effective, and not all bachelor’s degrees teach the specific skills that each job requires. People switch careers later in life and need specific training to learn skills that will support that shift. The Plan for Progress recognizes that a robust pipeline to a skilled workforce involves training people at all levels of skill and experience for a wide variety of jobs. This indicator evaluates the level of participation in programs that train people with specific skills to prepare them for jobs in the workforce. Data includes the number of people who take part in job skills training programs through the MassHire Workforce Boards or one of the three community colleges within the region. The majority of these are non-credit courses through the community colleges. Between FY2017 and FY2018, the number of participants in workforce training programs increased from 7,836 to 8,056, or about 3 percent. Hampshire and Franklin counties experienced a small decline while Hampden County had a larger increase. Note: Data is aggregated by fiscal year, and some duplication of totals is possible as the workforce boards and colleges may have the same students. Source: MassHire Franklin Hampshire Workforce Board, MassHire Hampden County Workforce Board, Massachusetts Department of Higher Education Unemployment The unemployment rate, produced by the U.S. Bureau of Labor Statistics, is the percentage of people in the labor force who do not have a job (the labor force is the sum of those who have a job and those who are looking for a job). Unemployment rates are frequently used to report on the state of the economy: a high unemployment rate can indicate a shrinking economy. Furthermore, unemployment rates give an idea of the portion of a community’s population that is financially insecure because they do not have a job. It should be noted that because unemployment rates are calculated based on a percentage of the people who are looking for work, it is actually an undercount of the total number of unemployed people who may actually wish to be employed. The unemployment rate does not include people who left the official labor force. This too is a significant factor as it underscores the growing portion of the population who are no longer considered employable for any number of reasons. The unemployment rate in the Pioneer Valley was stable between 2017 and 2018 with none of the three counties experiencing an uptick in unemployment. In the urban core, the unemployment rate in both Springfield and Holyoke dropped 0.3% and 0.5% respectively. Source: MA Executive Office of Labor and Workforce Development Trend Rating 2.8% Trend Rating -9.1% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 37 Goal #2: Foster an Environment Where Established, New, and Growing Businesses and Organizations Thrive Employers Another method of measuring the strength of an economy and the opportunities within it is to count the total number of employer businesses that exist. When an economy is strong, there are appropriate economic development supports, and when confidence is high, existing businesses are more likely to stay operating and within the region. What’s more, businesses from outside of the region are more likely to relocate here, and local entrepreneurs are more likely to start to grow a business. This indicator measures the total number of establishments in the area that have more than one employee. Between 2016 and 2017, the Pioneer Valley region saw an increase of 65 employers, representing a rate of growth of 0.3%. While all three counties in the region experience similar trends, the largest area of growth was in Franklin County. Holyoke was also somewhat strong with a growth rate of 1.1%. As a note, these numbers do not represent the introduction of the MGM Casino in Springfield, as they only take into account employers added up until 2017. Source: MA Executive Office of Labor and Workforce Development Jobs In addition to measuring the number of employers supported by an economy, measuring the total number of jobs reflects the size and strength of those employers. It gives perspective on the number of employment opportunities that exist within the region. Additionally, the number of jobs can add nuance to unemployment rates. For example, increased unemployment coinciding with increased jobs may suggest that a larger portion of the employment opportunities are part time and people are working multiple jobs at the same time rather than more people getting full time jobs. This indicator measures the total number of jobs that exist in an area. Between 2016 and 2017, the Pioneer Valley saw a slight increase in the number of jobs by 0.9%. This trend was seen in each county, with all three experiencing slight increases in the number of jobs throughout the year. Hampshire County saw the highest increase at 1.7% Source: MA Executive Office of Labor and Workforce Development Properties Ready for Development A critical component to a region’s economic competitiveness is whether vacant commercial properties are available and ready to be used by companies who may want to grow within, or move to, the area. If properties are polluted or have buildings that need to be demolished, the likelihood of new employer prospects choosing that site are significantly diminished. This indicator measures the number of commercial properties that are pre-permitted by WestMass Area Development Corporation and are ready for occupancy. Between 2017 and 2019, the number of sites ready for development in the Pioneer Valley dropped by one. All pre-permitted sites are located in Hampden County in Ludlow and Chicopee. Source: WestMass Development Corporation Trend Rating 0.3% Trend Rating 0.9% Trend Rating -14.3% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 38 Low Income and Poverty Poverty rates are an important indicator of what portion of a community’s population likely lacks the necessary resources to provide for themselves or their families. The most widely used measure of poverty is the federal poverty rate, which is the percentage of all people who are living in households with incomes that fall below the federal poverty line. The poverty line is established based on the current cost of basic goods and services (such as food, housing, transportation, and other goods and services), and what proportion of family income is spent on those items. While the threshold is adjusted over time and is dependent on family size and ages of family members, it is increasingly thought to understate the extent of poverty. The threshold in 2016 was $15,569 for a two person household – a very low level of income given that a low-cost one-bedroom apartment in western Massachusetts will typically rent for more than $8,800 per year. Because the federal poverty line is so low and generally misses a large portion of the population who are in economic distress, this indicator measures the percentage of the population living below 200% of that line. Poverty rates are calculated by the U.S. Census Bureau based on the income and number of people in each household. Slightly less than one out of every three people in the Pioneer Valley live in households with incomes below 200% of the poverty line (31.3%). The region saw a slight increase in the number of these households in comparison to 2016 (30.9%). Hampden and Franklin Counties saw growth in the number of these households, whereas Hampshire County saw a decrease of 12.7%. This may be connected to the growth in the number of employers noted above in Hampshire County. Source: U.S. Census Bureau, American Community Survey 1-Year-Estimates Goal #3: Implement and Enhance the Infrastructure that Connects, Sustains and Ensures the Safety and Resiliency of the Region and its Economy High Speed Internet Without a modern, high quality network of infrastructure, a region cannot sustain economic activity, retain its students and workers, or attract visitors, tourists and investment. High-speed internet access has become a core requirement for economic development well beyond technology and business fields. It is now an expected service for most businesseses, governments, and educational institutions, even for activities like elementary school homework. This indicator measures the percent of the population with access to high speed internet, as defined by the Federal Communications Commission (FCC). In 2015, the FCC increased the download speed standard for broadband, which is now 25/3Mbps. Between 2016 and 2017, the percent of the population with access to high-speed internet remained stable, increasing just 1% (from 94.04 to 94.96%). This rate is just under the Massachusetts state average of 97.8%. The FCC recently updated their standards and calculations on this measure. These new standards are not easily comparable to previous measures. For this reason, there is only trend data available between the years of 2016 and 2017. Source: Federal Communications Commission Fixed Broadband Deployment. Released June 2017. Trend Rating 1.4% Trend Rating 1.0% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 39 Bridge Conditions Safe and efficient transportation of people and goods are essential to an economically vibrant region. The network of roads and bridges must continue to be developed and maintained as both are degraded by use and weather over time. Bridges are considered structurally deficient through a rating system developed by the Association of State Highway and Transportation Officials (AASHTO). A bridge is deemed “structurally deficient” when it scores poorly on “structural adequacy, functional obsolescence and serviceability” by the Massachusetts Department of Transportation (MassDOT). Since 2008, MassDOT’s Accelerated Bridge Program sought to identify and reduce the number of structurally deficient bridges across the state, several of which are located across the Pioneer Valley. This indicator measures the total number of bridges deemed structurally deficient within the region. The data was only available for bridges eligible for federal aid. Since the last report in 2015, the number of structurally deficient bridges has decreased slightly. In 2015, 100 bridges were noted as being deficient, whereas in 2018 there were 95, a 5% decrease. Source: MassDOT Road Pavement Conditions Similar to bridge maintenance, quality of road pavement conditions affect freight deliveries, tourism, and daily commuters. Road pavement conditions are measured using the Overall Condition Index (OCI). While the Pioneer Valley Planning Commission collects data for all 43 municipalities in the region, the Franklin Regional Council of Governments conducts a survey of road conditions in Franklin County using a different system. Thus, a comparison between the two areas is not possible. OCI values span from 0 to 100, where zero indicates that the road is impassable and 100 indicates that a road in excellent condition. Average OCIs are computed for each community for the total number of miles of road eligible to receive federal aid. Most recently, data was collected for the Pioneer Valley Region (Hampden & Hampshire Counties) in 2011 and again in 2015. During this time, pavement conditions across the Pioneer Valley region worsened by an average of 3.9% annually. Trends were fairly similar in both counties, though the decrease was more significant in Hampden County which experienced an average annual drop of 4.4 percent. This data is collected and reported on over a four year period. The next available data will be in 2019. Source: Pioneer Valley Planning Commission Transit Ridership Public transit use and access directly reflect the degree to which a regional transit network and its corresponding schedules meet the needs of residents, workers, and employers. An effective public transit system with extensive, regular ridership decreases traffic and travel times, reduces pollution, and creates desirable places to live and work for a diverse area of people. People who cannot afford cars or would rather not drive them on a regular basis are more likely to live near extensive and efficient public transit networks. In this scenario, businesses are also more accessible to employees and Trend Rating -5.0% Trend Rating -3.9% Trend Rating -4.5% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 40 customers. This indicator measures the total annual rides on the two major transit authorities within the region (PVTA and FRTA) as well as Amtrak trains that service the region. Between FY2016 and FY2017, ridership decreased significantly by 5.9%. Both bus and train ridership decreased, although the decrease in bus ridership was much more pronounced at an almost 6% reduction. This is a nationwide trend, but in the Pioeer Valley in particular, this decrease is similar to all transit agencies in the Northeast, with likely causes including Uber/Lyft, lower unemployment, and cheaper car loans. Source: Amtrak, Franklin Regional Transit Authority (FRTA), and Pioneer Valley Transit Authority (PVTA) Bike Infrastructure Bicycling is generally regarded as one of the most efficient means of transportation, both for the user and the environment at large. Providing and continually extending bicycle-friendly paths can assist communities improve connectivity between destinations, provide transportation options to all users, and reduce transportation impacts on the environment. The availability of bicycle transportation is also an important factor in individual health outcomes. This indicator measures the total number of miles of on and off-road improved bike facilities. 'Bike facilities' is a broad term that encompasses sign-posted in-road bike routes, bike lanes, shared use paths and paved bike shoulders. There has been a steady increase in bike infrastructure, averaging annually to about 3.2%. In 2013, a total of 84.7 miles of bike facilities existed across the Pioneer Valley. Since that time, many proposed bike facilities have been built, and the total has increased to about 113 miles. Source: Pioneer Valley Planning Commission, MassGIS Transportation & Housing Costs Transportation and housing are generally the two most significant expenses for households. As a result, a region’s affordability is increasingly being examined specifically based on the cost of these two major domains. The U.S. Department of Housing and Urban Development (HUD) has developed a method of examining these factors in relation to income by comparing these combined average expenses as a percent of household incomes. This measure is called the Location Affordabilty Index (LAI). For this indicator, the average household contains four people, two of whom commute. The LAI is not calculated annually, and the most recent data was published in 2012 based on Census data from 2008-2012. At that time, an average four person household with two commuters in the Pioneer Valley spent about 52% of the household's income on housing and transportation costs. New data is expected to be released later in 2019. Source: U.S. Department of Housing and Urban Development (HUD) Location Affordability Index Affordable Housing The economic competitiveness of a region depends on the ability of workers of all income levels to find reasonably affordable housing. The state’s Comprehensive Permit Law, alternatively called “Chapter 40B” was adopted in 1969 to address racial and economic segregation, shortages in decent housing, inner city poverty, and exclusionary zoning practices in suburban and rural communities. It compels Trend Rating 8.2% Trend Rating Trend Data Not Yet Available Trend Rating 12.5% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 41 communities to have at least 10 percent of all housing set aside as affordable housing that is protected by long-term affordability restrictions. Communities below 10 percent must allow a streamlined process for proposed housing developments on the condition that 25 percent or more of the proposed units are reserved for low or moderate income households. This indicator measures the percent of all housing units in a community that are designated as subsidized housing units. Not included in this indicator is housing that is affordable, but does not have established long-term affordability restrictions attached to the property. In 2018, there were eight communities in the Pioneer Valley that met this requirement, including many of the larger municipalities. For 2019, there were nine communities. Source: MA Department of Housing and Community Development, Subsidized Housing Inventory Home Ownership Home ownership is a significant indicator of economic security. The primary financial investment for the vast majority of people in the U.S. is their home. Home ownership strengthens communities by building a strong connection between people and the place they live. However, the downside of a high owner-occupancy rate is that rental options for young, old, or transitional populations are limited. A lack of rental options, often supported by local zoning regulations, can also help to perpetuate socio- economic segregation throughout the region. Home ownership is expressed as the percent of all housing units that are occupied by the property’s owner. This indicator measures the percentage of housing units (including condominiums, apartments, houses, and mobile homes) that are occupied by the owner, as opposed to a renter. The American Community Survey collects and analyzes this data, and provides estimates on an annual basis. The percent of owner-occupied housing units in the Pioneer Valley decreased slightly from to 63.6% in 2016 to 61.7%. The percent of homeowners actually grew in Hampshire County by 4.5%, whereas it decrased in both Hampden and Franklin Counties by 6% and 0.3% respectively. In the urban core, Holyoke decreased by 2.3% while Springfield declined by 1%. Source: U.S. Census Bureau, American Community Survey, 1-year-Estimates Combined Sewer Overflows Ordinarily, storm water is sent to a wastewater treatment plant before it is emptied to a river. However, during high rainfall events, treatment plants may not be able to process all wastewater. Combined sewer overflows (CSOs) were built as a way to deal with this excess wastewater, essentially bypassing the treatment plant. However, the Massachusetts Department of Environmental Protection (MassDEP) is working to reduce the amount of active CSOs across the state in an effort to reduce water pollution. MassDEP’s Western Regional Office maintains a list of active CSOs within the region. Between 2016 and 2016, the number of CSOs draining to the Connecticut River or its tributaries fell from 59 to 57, for an average decrease of 3.4% per year. Both of the CSOs that were removed were located in the City of Chicopee. All remaining CSOs within the region are located throughout Hampden County. Source: MA Department of Environmental Protection Trend Rating -3.0% Trend Rating -3.4% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 42 Goal #4: Conduct Economic Development Activities in a Regionally Responsible Manner, Prioritizing Collaboration and Engagement Income Inequality In addition to educational, employment, poverty, transportation, and housing indicators, the overall level of economic inequality has important economic development implications. A community with lower levels of economic inequality is more likely to have economic and social stability at a community-wide level. Income inequality is a good way to provide a snapshot of how income is distributed throughout a region. The Gini Coefficient is one way to measure a region’s level of inequality. This indicator is a measure of how income is or is not equally distributed through a particular area. The Gini Coefficient is measured on a scale of 0 to 1, where 0 is complete equality and 1 is complete inequality. This particular indicator does not allow calculating income inequality across the entire Pioneer Valley in a reliable way, but rates are available within each county area. Between 2016 and 2017, income inequality decreased 5.7% across Hampshire County and 2.0% across Franklin County. Inequality grew in Hampden County by about 8.1%. Source: U.S. Census Bureau, American Community Survey 1-Year-Estimates State Funding - Non-School Local Aid Local aid provided by the Commonwealth of Massachusetts to municipalities is a significant source of budget revenue. While much of this aid provides funding for the local school system, it also funds veterans benefits, public libraries and general community programming. Municipalities track their funding on ‘Cherry Sheets’ which are maintained by the Massachusetts Department of Revenue. Total non-school local aid increased 3.6% in the Pioneer Valley between FY2018-FY2019. Increases occurred across all three counties in the region, with Hampden County experiencing the largest increase of 4.6%. Hampshire experienced a more modest increase of 4.6% and Franklin’s rate stayed the same. Source: MA Department of Revenue Leadership Programs A key strategy of the Plan for Progress is to ensure the development and mentorship of a new generation of collaborative, diverse, professional and civically engaged leaders who will ensure that the future of the Pioneer Valley continues to be bright. The region has a few specific programs designed for supporting this type of leadership. This indicator measures the total number of graduates from all leadership programs within the region, including the Women’s Fund of Western Massachussetts, Leadership Pioneer Valley, Leadership Holyoke which is run by the Holyoke Chamber of Commerce, and the Springfield Leadership Institute which is run by the Springfield Chamber of Commerce in partnership with Western New England College of Business. County Trend Rating Hampden County 8.1% Hampshire County -5.7% Franklin County -2.0% Trend Rating 3.6% Trend Rating 14.1% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 43 The number of graduates from these leadership programs increased by 14.1% between 2017 and 2018. Source: Leadership Pioneer Valley, Springfield Leadership Institute, Leadership Holyoke Active Voters Voter registration is one method to measure the level of citizen engagement in the political process and the civic concerns of their community. Low voter registration rates can be interpreted in many ways. Some argue that low voter registration rates reflect a citizenry’s lack of interest in the political process, a disconnection between citizen and government, and a sentiment that participation does not affect outcomes. Another interpretation of low voter registration is that this trend reflects a citizenry that is satisfied with the status quo. Language and educational barriers also influence voter registration rates by inhibiting participation. Voter registration rates are, in some ways, a better indicator of civic participation than voter turnout rates because the former do not reflect as much year-to-year variation based on the issues or elections on the ballot. This indicator measures the total number of registered voters divided by the total population over the age of 18, which approximates the voter registration rate. Between 2016 and 2018, the voter registration rate decreased slightly, from 85.3% in 2016 to 84.5% in 2018. Decreases occurred across all three counties in the region. Source: Massachusetts Secretary of the Commonwealth, Elections Division, U.S. Census Bureau, American Community Survey 1-Year-Estimates Trend Rating -0.5% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 44 Economic Resilience The Economic Development Administration CEDS guidance points out that “it is becoming increasingly apparent that regional economic prosperity is linked to an area’s ability to prevent, withstand, and quickly recover from major disruptions (i.e., ‘shocks’) to its economic base.” The CEDS is meant to address three aspects of disruptions: 1) the ability to withstand a shock, 2) the ability to recover quickly from a shock, and 3) the ability to avoid the shock altogether. Again, as the EDA indicates, shocks and disruptions to the economic base of a region are manifested in several ways:  Downturns or other significant events in the national or international economy which reduce demand for locally produced goods and consumer spending;  Downturns in particular industries that constitute a critical component of the region’s economic activity; and/or  Other external shocks such as a natural or man-made disaster, closure of a military base, exit of a major employer, or the impacts of climate change. The Pioneer Valley Region is engaging in numerous initiatives to protect its communities from shocks and disruptions to the economy. A detailed assessment of activities under way in the region is included in Appendix E. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 45 Appendices 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 46 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 47 Appendix A: Public Outreach 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 48 This Appendix details the public outreach process conducted for the 2019-2014 Pioneer Valley CEDS. CEDS Committee The CEDS Committee, called the Coordinating Council, meets six times a year and is open to the public. Membership is comprised of representatives from public, private and civic sector entities and is periodically re-evaluated, with new members recruited from major new businesses or from organizations that are growing or evolving. Each year, issues of the highest concern for our region are addressed and monitored by the Council. For the 2019 CEDS Five-Year Plan, a draft of the SWOT analysis and the new objectives and action strategies was distributed in early March 2019 and discussed at the Council’s March 20, 2019 meeting. A full draft of the CEDS was provided on May 1, 2019 for a 30-day public review period, during which Coordinating Council members also provide feedback both at their regular May 15th meeting and via email or other means. CEDS Goals and Strategies addressed by the Committee this year (2018-19) included:  Develop and Maintain a Globally Competitive and Regionally Engaged Talent Pool – The Coordinating Council heard from and talked with Dr. John Cook, President of Springfield Technical Community College (STCC), regarding the many ways in which STCC is implementing goals of the CEDS Plan for Progress while fulfilling its mission as a community resource. As part of these same goals, the Coordinating Council hosted a visit with implementers of the Westfield Education to Business Alliance, a partnership of the Greater Westfield Chamber of Commerce and the Westfield Public School District that is helping students learn about career and employment opportunities in the region and helping employers find talented and qualified employees.  Enhance Regional Approaches to Public Safety, Public Health and Disaster Resilience – The Coordinating Council spoke with the Co-Chairs of the Public Health Trust Fund established by the Massachusetts Gaming Commission about the economic and social impacts of expanded gaming and advocated for the equitable distribution of funding resources to address them within this region. The Council also heard from the research team from UMass Amherst that is tracking impacts of expanded gaming.  Foster an Environment Where Established, New, and Growing Businesses and Organizations Thrive – Lead implementers for the development of small business and entrepreneurship met with the Coordinating Council to address the progress of Valley Venture Mentors and EforAll Holyoke, two successful business mentoring and accelerator programs. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 49  Conduct Economic Development Activities in a Regionally Responsible Manner, Prioritizing Collaboration and Engagement – Representatives from two urban core Transformative Development Initiatives (TDI), sponsored by MassDevelopment, met and spoke with the Coordinating Council about successful efforts over the past several years to partner with the host cities of Springfield and Holyoke and with numerous other entities within the Districts. Economic Development Partners (EDP) The Economic Development Partners is a group of stakeholders convened monthly by the Economic Development Council (EDC) of Western Massachusetts. The group includes about 25 members, including municipal economic development staff, regional representatives of state offices, regional planning agency members, workforce development entities, EDC staff, state university representatives and others. The group addresses issues of regional concern that affect many cities and towns in the Pioneer Valley, by sharing best practices, hearing from business leaders, and learning about state programs that assist businesses. Some of the concerns that communities are addressing now include:  Church vacancies and reuse strategies – Many area churches are now vacant due to smaller congregations, and numerous church buildings have been “mothballed” or are slated for demolition. Many of these are historic structures with architectural significance. Communities are seeking ways to approach the issue, both with the Catholic Diocese and with potential developers.  Opportunity Zone legislation – Cities and towns are seeking to utilize the benefits of opportunity zones without jeopardizing the well-being of their communities. The first-time program is just being rolled out and municipalities are in the process of learning about it. The Economic Development Partners planned and hosted an event and workshop in April 2019 that sought to match shovel-ready projects in Opportunity Zones with qualified investors.  Short-term rentals issues – Short-term rental properties have different levels of significance in different parts of the region – in some places, they are a boon to tourism, while in others, they can be a concern for pre-existing accommodations, particularly bed-and-breakfast establishments and small inns. State-level regulations will take effect in July of 2019 and will allow communities to levy an additional lodging tax of up to 6%.  Cannabis sales - permitting and siting. Both medical and recreational marijuana sales are now legal in Massachusetts, although each community must regulate them individually. Cities and towns are navigating the complex process, and several new cannabis outlets have opened in western Massachusetts. Rural Policy Advisory Commission (RPAC) The Rural Policy Advisory Commission was created by the Massachusetts legislature in 2015, with a mission to research issues “critical to the welfare and vitality of rural communities.” There are 29 rural 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 50 towns in the Pioneer Valley Economic Development District, based on the state’s definition as having a density of less than 500 persons per square mile. The RPAC is represented by members from each region of the state, meets quarterly, and has conducted research and surveys of rural towns in Massachusetts. In 2018, the RPAC held a series of listening sessions, including one in the Pioneer Valley, to gather input from local communities. The December 11, 2018 session brought 21 attendees representing 9 rural towns who spent about two hours discussing issues of concern in their communities. The most significant concerns regarding economic development issues were the following:  Economies of scale in rural areas are too small to be viable. Businesses are extremely small, most with less than five employees.  Small businesses lack access to services especially technical assistance. They have high transportation costs and in many areas still lack broadband access.  Transportation needs innovative solutions, such as a public ride-hailing service, use of school buses for transit, and coordination of senior services.  Economic resilience is threatened because of lack of sufficient and sufficiently robust infrastructure, including flood management, power grid resilience, and water supplies not dependent on electric pumps.  The tourism industry can have negative impacts at the same time that it brings investment to rural areas.  Lack of broadband is a problem for existing businesses and also a disincentive for young people to stay in the area and start new businesses.  The clean energy industry has created new challenges, such as needing expertise in permitting and oversight and creating an incentive to cut down forested areas for large solar arrays.  Local agriculture and food production is viable, particularly with lack of air and water pollution; however farmers who rely on seasonal farm workers have been affected by policies that affect immigrants.  There is a lack of tradespeople to fill basic service needs. The strengths of rural areas were identified as:  Natural beauty  Small-town “feel”  Innovation  Lack of pollution 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 51  Can grow your own food  Businesses locate there for the sense of community not primarily for the financial rewards Business Surveys In the fall of 2018, the PVPC conducted business surveys at two local chamber of commerce events, one in the City of Chicopee and one in the City of Westfield. The surveys were distributed to about 45-75 attendees in each case, and a total of 36 surveys were returned, for a response rate of about 30%. The businesses responding included four in financial services/insurance, two manufacturers, two utilities, two banks, and a wide variety of others. The top five issues of greatest concern for these businesses were: 1) Health care costs for employer and employees 2) Finding qualified high-skill employees 3) Cyber-security 4) Employee training needs 5) Energy costs A detailed summary of the results can be found in Appendix D. Westover Air Reserve Base Joint Land Use Study: Public Outreach to Pioneer Valley communities of Chicopee, Springfield, South Hadley, Ludlow and Granby. The United States Department of Defense (DoD) enlisted the assistance of the Pioneer Valley Planning Commission (PVPC) to work with Westover Air Reserve Base (WARB), Westover Airport and the surrounding communities of Chicopee, Springfield, South Hadley, Ludlow and Granby to update the base’s Joint Land Use Study (JLUS), most recently completed in 2004. The development of the JLUS update was a cooperative land-use planning effort to identify existing and potential incompatibilities between activities occurring on the base and those in the surrounding communities. The study also reviews the economic context and impact of the Air Reserve Base. The recommendations developed from the JLUS provide the policy framework to support adoption and implementation of compatible development near the military installation. This is typically most effectively achieved through the use of local land-use planning and zoning regulations and improved cooperation and communication between all parties. The JLUS Update was a comprehensive and ongoing process which encouraged public input, including soliciting comments through a public survey. The results of the Westover JLUS Community Survey are available here. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 52 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 53 Appendix B: Summary Background Data 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 54 AN ANALYSIS OF REGIONAL ECONOMIC CONDITIONS Summary Background Data for 2019 CEDS Five-Year Plan The Pioneer Valley Region Located in the midwestern section of Massachusetts and covering 1,179 square miles, the Pioneer Valley region and Economic Development District (EDD) encompasses the fourth largest metropolitan area in New England. The region is bisected by the Connecticut River, and it is bounded to the north by Franklin County, to the south by the state of Connecticut, to the east by the Quabbin Reservoir and Worcester County, and to the west by Berkshire County. The Pioneer Valley region constitutes the 43 cities and towns within the Hampshire and Hampden county areas and is home to about 630,385 people including the urbanized areas of Springfield, Chicopee, and Holyoke. Springfield, the third largest city in Massachusetts, is the region's cultural and economic center. Springfield is home to several of the region's largest employers, including MassMutual Life Insurance Company, Baystate Health, and Big Y World Class Markets. Major cultural institutions include the Springfield Symphony, the MassMutual Convention Center, the Basketball Hall of Fame, and the Springfield Museums, including the Dr. Seuss Museum and National Memorial Sculpture Garden. The cities of Chicopee and Holyoke were the first planned industrial communities in the nation. Merchants built an elaborate complex of mills, workers’ housing, dams, and canal systems that evolved into cities. While many of the historic mills and industries are now gone, a number of 19th and 20th century structures are maintained and improved through municipal revitalization initiatives, and new industries and small businesses are growing. Unique within the Commonwealth of Massachusetts, the Pioneer Valley region contains a diverse economic base, internationally-recognized educational institutions, and remarkable scenic beauty. Dominant physical characteristics include the broad, fertile agricultural valley formed by the Connecticut River, the Holyoke Mountain range that traverses the region from Southwick to Pelham, and the foothills of the Berkshire Mountains. Prime agricultural land, forests, and scenic rivers are some of the region's premier natural resources. Choices in lifestyle range from contemporary downtown living, suburban neighborhoods, and rural environments in very small communities—a variety that contributes to the diversity and appeal of the region. The unique combination of natural beauty, cultural amenities, and wide range of opportunities make the Pioneer Valley region an exceptional environment in which to live, work, and play. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 55 The People Changes in Population Between 2010 and 2017, the Pioneer Valley region’s population increased by about 1.7 percent. While some of that growth occurred in the urban areas, many of the more rural or suburban towns saw the most significant proportional increases. Conversely, other rural towns experienced the most significant population decreases during the same period. Collectively, the population of the more urban communities of Agawam, Chicopee, Holyoke, Springfield, Westfield, and West Springfield grew just over 1 percent between 2010 and 2017, with much of this growth occurring in Westfield and West Springfield. Figure 1: Percent Change in Population (2007-2017) Data Source: U. S. Census Bureau Population Estimates Program, 2007-2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 56 Table 1: Changes in Total Population of the Pioneer Valley Region (2007-2017) Source: U. S. Decennial Census, 2000-2017 Municipality 2007 Population Total 2017 Population Total % Change 2007-2017 United States 301,621,159 321,004,407 6.43% Massachusetts 6,449,755 6,789,319 5.26% Pioneer Valley Region 622954 630385 1.19% Hampden County 467756 469188 0.31% Hampshire County 155198 161197 3.87% Agawam 28757 28748 -0.03% Blandford 1310 1259 -3.89% Brimfield 3841 3724 -3.05% Chicopee 56088 55778 -0.55% Cummington 967 860 -11.07% Easthampton 16218 16051 -1.03% Granville 1667 1660 -0.42% Hampden 5355 5193 -3.03% Holland 2592 2510 -3.16% Holyoke 40820 40362 -1.12% Huntington 2207 1977 -10.42% Ludlow 22382 21331 -4.70% Middlefield 553 464 -16.09% Monson 9125 8803 -3.53% Palmer 13276 12237 -7.83% Pelham 1394 1277 -8.39% Russell 1796 1330 -25.95% Southwick 9822 9711 -1.13% Worthington 1271 1253 -1.42% Chesterfield 1280 1303 1.80% East Longmeadow 15680 16156 3.04% Granby 6271 6318 0.75% Hatfield 3239 3305 2.04% Longmeadow 15806 15876 0.44% Northampton 28538 28548 0.04% South Hadley 17160 17737 3.36% Southampton 5819 6090 4.66% Springfield 151342 154613 2.16% Wales 1916 2009 4.85% Ware 9850 9863 0.13% West Springfield 28501 28671 0.60% Westfield 40774 41667 2.19% Wilbraham 14372 14553 1.26% Williamsburg 2476 2481 0.20% Belchertown 14129 14906 5.50% Montgomery 736 802 8.97% Amherst 35962 39880 10.89% Chester 1331 1529 14.88% Goshen 963 1096 13.81% Hadley 4738 5301 11.88% Plainfield 595 668 12.27% Tolland 467 666 42.61% Westhampton 1568 1819 16.01% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 57 Table 2: Hispanic or Latino Population in the Pioneer Valley Region 2000-2017 Sources: U. S. Census Bureau, 2000 Decennial Census and 2017 ACS 1-Year Estimates Table 3: Population by Race 2017 Source: U.S. Census Bureau, 2017 1-Year County Population Estimates. Because the U.S. Census Bureau considers Hispanic/Latino an ethnic category rather than a race category, all race categories include some people who are Hispanic or Latino and some who are not. Figure 1 depicts the pattern of population growth and decline between 2010 and 2017. The populations of the Pioneer Valley Region’s urban communities have remained relatively stable over the past seven years, with modest growth occurring in Westfield, West Springfield, Holyoke, Springfield and Chicopee. Several suburban and rural communities, such as Tolland, Chesterfield, Chester, and Westhampton, experienced significant population growth of over 14% from 2010 to 2017, while other small towns like Huntington, Russell, and Cummington experienced substantial decline, with each town losing over 10% of its population. The northern urban areas of Amherst and Northampton have experienced distinct growth patterns since the early 2000s. While Amherst climbed back to well beyond its 1990 level, with a population increase of 6.6% between 2010 and 2017, the population of Northampton decreased slightly during the same period. The general pattern of large proportional increases happening in smaller towns also occurred in communities around these northern urban areas, with Hadley growing by 10.6% since 2000. In a seventeen year time frame (2000-2017), the region’s Hispanic and Latino population grew by 62.5%, a rate of growth that was slightly higher than that of the nation and lower than that of the state (see Table 2). While the rate of growth in the Hispanic and Latino population has been slower than that of the state, at approximately 19% of the total population, the Hispanic and Latino population is actually significantly higher than that of the state. In this sense, the Pioneer Valley region looks less like the rest of the state as a whole and more like nation-wide demographics. Conversely, the proportion of the Pioneer Valley region population identifying exclusively as White (82.9%) is closer to that of the state (78.5%) than to the nation (72.3 percent). (See Table 3.) 2000 2017 % Change 2000 2017 % Change Pioneer Valley Region 74,409 120,936 62.5% 12.2% 19.2% 7.0% Hampden County 69,197 112,302 62.3% 15.2% 23.9% 8.8% Hampshire County 5,212 8,634 65.7% 3.4% 5.4% 2.0% Massachusetts 428,729 760,177 77.3% 6.8% 11.2% 4.4% United States 35,305,818 56,510,571 60.1% 12.5% 17.6% 5.1% % of Total PopulationHispanic or Latino Persons White African American Native American Asian Pacific Islander Other Races Pioneer Valley Region 82.9% 7.7% 0.2% 3.2% 0.0% 5.9% Hampden County 81.2% 9.3% 0.3% 2.5% 0.0% 6.6% Hampshire County 87.8% 2.9% 0.1% 5.3% 0.0% 3.9% Massachusetts 78.5% 7.8% 0.2% 6.6% 0.0% 6.9% United States 72.3% 12.7% 0.8% 5.6% 0.2% 8.4% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 58 While the proportion of people who identify as White in the Pioneer Valley region is now slightly higher than that of Massachusetts as a whole, the breakdown of people who identified as races other than White were varied somewhat. The Pioneer Valley region was nearly identical to the state in the proportion of people who identify as African Americans, Native Americans, or Pacific Islander, 3.4% lower in the proportion of people who identify as an Asian race and 1% lower in the proportion of people who consider themselves a race other than the main five classifications recognized by the U.S. Census Bureau. Figure 2: Pioneer Valley Region Population Changes by Race and Ethnicity Source: U.S. Census Bureau, 2017 1-Year County Population Estimates. Note: In 2010, an additional Race category of "Some other race, not otherwise specified" was included in the category of "Other, Not Hispanic" which contributed to the significant increase in that category. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 59 The age distribution of the population within the Pioneer Valley region mirrors the aging population trends across the nation, and hints at some explanations for the type of slow population growth that has occurred over recent decades. Between 2000 and 2017, the region has seen increases in people of every age category except 0-4 years and 5-9 years, with the largest increases seen in the 25-44 and 45-64 year old age groups. While many in the 45-64 year old age group are still fully in their careers, it will be important to note this share of the population (23%) who are likely to move out of the labor force and into retirement within the next decade. Figure 3: Population by Age in the Pioneer Valley Region Source: U.S. Census Bureau American Community Survey, 2017 1-Year-Estimates 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 60 Demographics and Migration Retaining the population base has been a challenge in the Pioneer Valley region. Although trends of out-migration decreased between 1991 and 2002, it appears that this trend is reversing. During the recession of the 2000s when the housing market crashed, net out- migration decreased significantly, reflecting similar trends to those in previous economic downturns. However, net-out migration has been increasing steadily since then. In 2011, net out-migration was over seven times higher than in 2010. Although this trend reversed between 2016 and 2017, net out-migration in the Pioneer Valley region is overall on the rise. Figure 4: Net Domestic Migration in the Pioneer Valley Region Source: U. S. Census Bureau Population Division, 2017 The Pioneer Valley has always been a destination for foreign immigrants and this continues to be the case. From 2000 to 2009 inclusive, a total of 13,656 new immigrants settled in the Pioneer Valley region. In fact, if not for foreign born immigration, the Pioneer Valley region would have experienced a net loss of population between 1990 and 2000. This trend of foreign immigration has continued since 2010, which has seen an additional 14,663 people immigrating to the region from another country. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 61 Figure 5: Foreign Born Persons by Year of Entry in the Pioneer Valley Region Source: U.S. Census Bureau, American Community Survey, 2017 1-Year Estimates A commonly cited concern about the region’s high level of international immigration is whether there are adequate services for new arrivals who often enter the country with few resources. However; with its history of immigration dating back to the industrial mills of the nineteenth century, the Valley has historically demonstrated the capacity to readily absorb new immigrants into the economy. For instance, in 2017 the poverty rate of the foreign born population was only 0.8% higher than the total population in the Pioneer Valley region (see Figure 6). This figure is lower than state and national trends, which show the foreign born population with an observably higher poverty rate than the general population (by 3.6% in Massachusetts and 2.6% nationally in 2017). 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 62 Additionally, data from 2017 show that once immigrants have become naturalized citizens, they have a poverty rate in the Pioneer Valley region that is 4.7% below that of the population as a whole. Immigration has been, and will continue to be important to the growth of the region’s population and economy. Figure 6: 2017 Poverty Rates for all Persons and Foreign Born Persons by Citizenship Status Source: U.S. Census Bureau, 2017 American Community Survey 1-Year Estimates 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 63 Income and Poverty To measure economic growth, we examine several indicators including per capita income, median family income, and poverty rates. According to these measures, the Pioneer Valley region experienced economic improvement consistent with national rates during the 1990s, and, while growth was slower than the nation for the first part of the 2000s, the region’s economy seems to have been less negatively affected by the recession than the state and national economies. Per capita income is a useful measure of economic growth because it controls for population change by measuring total income as it relates to population size. Inflation is controlled by converting the annual values to current year dollars using the Consumer Price Index for the Northeast. As seen in Figure 7, the region’s per capita income is significantly less than the per capita income for the Commonwealth and slightly below that of the nation. Much of the economic growth is the result of economic changes in the 1990s. In 1980, the difference between incomes in the Pioneer Valley and state, adjusting for inflation, was $3,685, but in 2017 it was $17,987. This difference exists despite significant regional growth, as evidenced by the 37.3% growth of per capita income between 1990 and 2017. However, in a comparable time period, Massachusetts per capita incomes grew by 54.1%. Since 2000, this trend has shifted and growth rates in the Pioneer Valley region have surpassed those of the state and nation: The region’s per capita income gains have equaled 24.8% while statewide gains have been a more moderate 23.82%. According to 2013-2017 5-year estimates from the U.S. Census Bureau, “real” per capita income rose between 2000 and 2017 in 24 Pioneer Valley region communities (see Table 4). Middlefield, Chesterfield, Belchertown, and Chester all experienced increases exceeding 15%. In contrast, Amherst, Wales, and Springfield experienced double-digit decreases in per capita income. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 64 Figure 7: Per Capita Income (Adjusted to 2017 $) Source: U.S. Bureau of Economic Analysis, Regional Economic Information System, 1997-2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 65 Table 4: Changes in Per Capita Income Source: U.S. Census Bureau 2000 Decennial Census and 2013-17 American Community Survey Estimates 2000 Count 2013-2017 Estimate % Change Massachusetts 38,821 39,913 2.7% Pioneer Valley Region 30,033 29,127 -3.1% Hampden County 29,231 28,072 -4.1% Hampshire County 32,439 32,198 -0.8% Agawam 33,750 33,297 -1.4% Amherst 26,069 20,336 -28.2% Belchertown 32,817 39,308 16.5% Blandford 36,328 33,957 -7.0% Brimfield 35,469 39,077 9.2% Chester 27,073 32,045 15.5% Chesterfield 28,751 36,177 20.5% Chicopee 27,892 26,432 -5.5% Cummington 32,241 32,170 -0.2% East Longmeadow 41,375 38,320 -8.0% Easthampton 32,793 34,038 3.7% Goshen 33,240 35,419 6.2% Granby 34,718 40,133 13.5% Granville 33,381 34,208 2.4% Hadley 37,315 41,575 10.3% Hampden 39,925 39,634 -0.7% Hatfield 37,118 38,574 3.8% Holland 32,566 34,752 6.3% Holyoke 23,804 22,625 -5.2% Huntington 28,998 30,025 3.4% Longmeadow 58,264 55,593 -4.8% Ludlow 30,075 33,247 9.5% Middlefield 36,106 45,630 20.9% Monson 33,686 35,744 5.8% Montgomery 38,807 37,029 -4.8% Northampton 35,934 36,045 0.3% Palmer 27,919 30,793 9.3% Pelham 44,609 48,294 7.6% Plainfield 31,092 30,631 -1.5% Russell 31,890 30,928 -3.1% South Hadley 34,005 32,070 -6.0% Southampton 39,200 44,641 12.2% Southwick 32,545 38,002 14.4% Springfield 22,785 20,046 -13.7% Tolland 45,065 40,435 11.5% Wales 31,813 27,133 -17.3% Ware 28,284 27,579 -2.6% West Springfield 31,387 29,344 -7.0% Westfield 30,815 29,092 -5.9% Westhampton 37,936 37,453 -1.3% Wilbraham 44,658 45,539 1.9% Williamsburg 38,614 43,357 10.9% Worthington 36,186 41,365 12.5% Per Capita Income (in 2017 Dollars) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 66 Table 5: Changes in Median Family Income in the Pioneer Valley Region Source: U.S. Census Bureau 2000 Decennial census and American Community Survey 2013-2017 5-Year Estimates 2000 Count 2013-2017 Estimate % Change Massachusetts $91,263 $94,110 3.12% Hampden County $72,900 $88,476 21.37% Hampshire County $85,070 $71,205 -16.30% Pioneer Valley Region $75,821 $65,994 -12.96% Agawam $87,450 $84,789 -3.04% Amherst $90,631 $94,449 4.21% Belchertown $90,028 $99,450 10.47% Blandford $87,875 $72,188 -17.85% Brimfield $88,716 $94,444 6.46% Chester $76,859 $80,469 4.70% Chesterfield $84,894 $87,083 2.58% Chicopee $65,321 $60,645 -7.16% Cummington $72,150 $61,375 -14.93% East Longmeadow $104,445 $100,979 -3.32% Easthampton $80,382 $71,835 -10.63% Goshen $86,950 $87,500 0.63% Granby $85,295 $105,448 23.63% Granville $87,644 $89,130 1.70% Hadley $91,608 $81,786 -10.72% Hampden $111,602 $92,460 -17.15% Hatfield $91,178 $80,417 -11.80% Holland $84,396 $90,852 7.65% Holyoke $53,472 $46,940 -12.22% Huntington $77,416 $78,056 0.83% Longmeadow $129,858 $126,681 -2.45% Ludlow $82,461 $82,874 0.50% Middlefield $79,756 $106,250 33.22% Monson $86,738 $95,444 10.04% Montgomery $98,050 $94,844 -3.27% Northampton $84,129 $91,707 9.01% Palmer $73,050 $73,250 0.27% Pelham $106,067 $98,750 -6.90% Plainfield $68,142 $59,250 -13.05% Russell $71,989 $76,111 5.73% South Hadley $86,866 $80,227 -7.64% Southampton $96,141 $115,500 20.14% Southwick $95,395 $91,731 -3.84% Springfield $53,702 $41,485 -22.75% Tolland $96,817 $103,750 7.16% Wales $76,411 $61,300 -19.78% Ware $67,347 $76,085 12.97% West Springfield $74,417 $70,262 -5.58% Westfield $81,884 $75,483 -7.82% Westhampton $98,605 $94,844 -3.81% Wilbraham $109,261 $114,293 4.61% Williamsburg $82,633 $94,167 13.96% Worthington $88,995 $95,000 6.75% Median Family Income (in 2017 Dollars) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 67 Figure 8: Median Family Income (2017) Source: U.S.Census Bureau, American Community Survey 5-year Estimates, 2013-2017 According to the U.S. Census Bureau, median family incomes in the Pioneer Valley region decreased by just over 6% between 2000 and the five year period between 2013-2017 (see Table 5). Within the region there are significant income disparities (see Figure 8). For example, while Longmeadow, Southampton, Wilbraham, and Middlefield have median family incomes well above $100,000, Springfield and Holyoke median family incomes are less than $47,000. What’s more, the lowest family incomes have continued to decline, particularly in Springfield (by 22.7%).This trend is not exclusive to large cities, as many of the region’s smaller towns like Wales, Blandford, and Hampden experienced significant drops exceeding 15%. Cummington, Plainfield, Holyoke, Hatfield, and Hadley also experienced significant proportional declines. At the same time, several communities have experienced more positive trends. Middlefield and Granby, for example, experienced large increases to their median family incomes (by 33.2% and 23.6% respectively). In 1999, the median family income was $79,756 in Middlefield and $85,295 in Granby (adjusted for inflation to 2017 dollars). Seventeen years later, both median incomes are both over $100,000, with Middlefield at $106,250 and Granby at $105,448. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 68 Figure 9: Poverty Rate in the Pioneer Valley Region, 2007-2017 Source: U.S. Census Bureau, Small Area Income and Poverty Estimates (SAIPE), 2017 Note: Poverty rates displayed in this figure may differ slightly from Table 6 and Figure 11 as different data sources were required Poverty rate is another measure used to determine quality of life and economic well-being. In the Pioneer Valley region, poverty rates amongst the general population climbed from 15.2% in 2007 to 16.7% in 2012. Between 2007 and 2010, poverty rates hovered consistently around 15 percent, dropping slightly in 2008 to 14.3% but then increasing in 2009 to 15.8% and again in 2012 to 16.7%, a rate higher than has existed for over a decade. However, since then, poverty rates in the Pioneer Valley region have decreased to 14.6% in 2017 (as seen in Figure 9). Despite lower poverty rates in recent years, the poverty rate in the Pioneer Valley region continues to follow a decade-long pattern of exceeding Massachusetts’ overall rate by several percentage points. In 2017, this difference was 9 percent. The poverty rate trends, and the per capita income growth patterns previously mentioned, suggest that the region did not share equally in the state’s economic growth at the end of the 1990s, nor in the middle portion of the 2000s. While in 2010 the total poverty rate in the Pioneer Valley region was lower than that of the nation as a whole for the first time in over a decade, the current 2017 rate is about 1% above the national rate. In the ten year period from 2007 to 2017, child poverty rates in the region have been consistently higher than those for the United States and drastically so in relation to Massachusetts overall, as seen in Figure 10. Child poverty rates in the Pioneer Valley region decreased from a high of 26.7% in 2012 to 21.9% in 2017. Still, since 2005, child poverty rates in the Pioneer Valley region as a whole have exceeded 20% annually. This indicates that more than one in five children in the Pioneer Valley region has grown up in households with incomes below the poverty line. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 69 According to the U. S. Census Bureau American Community Survey 2013-2017 5-Year Estimates, disparities in the distribution of poverty amongst the municipalities of the region are substantial. The major urban centers of Springfield and Holyoke continue to have the highest poverty rates in the region, well above 20% in all categories (as seen in Table 6). Most alarmingly, the rate of children living in poverty is 42.3% in Springfield and 45.6% in Holyoke. There has been a significant increase in the number of individuals living in poverty in the Town of Amherst. The Town of Amherst has surpassed both Holyoke and Springfield in the number of individuals living in poverty in 2017. The large student population in Amherst is likely a major contributor to the high poverty rate in town, a theory supported by the fact that family and child poverty rates remain much lower than the individual rates. Still, this doesn’t explain why there was such a large increase in the poverty rate in recent years. Holyoke, Springfield, Amherst, Ware, and Chicopee all experienced significantly increasing percentages of children in poverty. Among those communities close to the urban centers, West Springfield and Westfield have managed to keep relatively stable family and individual poverty rates but experienced a significant jump in child poverty (7.7% and 4.3% respectively). Figure 10: Child Poverty Rate in the Pioneer Valley Region, 2007-2017 Source: U.S. Census Bureau, Small Area Income and Poverty Estimates (SAIPE), 2017 Note: Poverty rates displayed in this figure may differ slightly from Table 6 and Figure 11 as different data sources were required. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 70 Table 6: Changes in Community Poverty Rates 2000 to 2017 Source: U.S. Bureau of the Census 2000, American Community Survey 2000-2017 5-Ye ar Estimates 2000 2017 2000 2017 2000 2017 Massachusetts 6.7% 7.8% 6.7%14.6%9.3%11.1% Pioneer Valley Region 10.0% 11.9% 10.0% 23.9% 13.4% 16.3% Hampden County 11.4%13.7%11.4% 26.7% 14.7% 17.2% Hampshire County 5.1%5.9%5.1% 12.3% 9.4% 13.8% Agawam 4.3%6.8% 4.3% 13.2% 5.6% 9.4% Amherst 7.2%9.7% 7.2% 22.0% 20.2% 33.2% Belchertown 5.1%2.7% 5.1% 4.8% 5.9% 5.8% Blandford 1.7%6.6% 1.7% 18.8% 3.4% 7.1% Brimfield 2.2%5.6% 2.2% 5.6% 4.4% 4.2% Chester 2.9%3.5% 2.9% 9.5% 5.8% 6.4% Chesterfield 3.4%3.2% 3.4% 4.0% 5.7% 5.9% Chicopee 9.6%11.5% 9.6% 20.4% 12.3% 14.4% Cummington 4.2%0.0% 4.2% 0.0% 6.6% 5.3% East Longmeadow 2.1%3.4% 2.1% 7.6% 3.4% 4.5% Easthampton 5.9%5.3% 5.9% 12.6% 8.9% 10.7% Goshen 4.3%0.0% 4.3% 0.0% 7.9% 2.4% Granby 1.0%3.1% 1.0% 5.2% 2.2% 5.5% Granville 1.8%4.8% 1.8% 12.1% 3.4% 8.4% Hadley 4.8%2.3% 4.8% 3.9% 6.9% 5.4% Hampden 1.4%2.3% 1.4% 3.5% 2.2% 4.0% Hatfield 1.4%1.9% 1.4% 1.5% 2.8% 4.4% Holland 6.5%1.5% 6.5% 0.8% 7.3% 4.1% Holyoke 22.6%24.7% 22.6% 45.6% 26.4% 28.6% Huntington 4.4%4.7% 4.4% 13.1% 5.8% 8.0% Longmeadow 1.0%2.7% 1.0% 4.7% 2.1% 3.6% Ludlow 5.3%4.0% 5.3% 7.2% 6.4% 5.8% Middlefield 7.3%6.9% 7.3% 7.0% 8.6% 7.1% Monson 5.2%3.1% 5.2% 4.1% 5.6% 5.6% Montgomery 1.0%2.1% 1.0% 4.9% 2.9% 3.7% Northampton 5.7%7.7% 5.7% 15.7% 9.8% 15.0% Palmer 5.8%11.5% 5.8% 17.8% 7.9% 14.1% Pelham 2.6%1.1% 2.6% 0.0% 4.9% 4.0% Plainfield 4.8%6.3% 4.8% 10.5% 8.0% 7.6% Russell 7.1%4.4% 7.1% 11.3% 9.0% 7.1% South Hadley 4.1%4.9% 4.1% 11.0% 5.9% 10.4% Southampton 1.8%3.6% 1.8% 4.2% 2.4% 4.6% Southwick 3.8%7.1% 3.8% 9.3% 6.1% 7.2% Springfield 19.3%24.7% 19.3% 42.3% 23.1% 28.7% Tolland 2.3%1.5% 2.3% 0.0% 4.2% 7.2% Wales 1.8%5.0% 1.8% 8.0% 3.5% 5.7% Ware 8.4%12.3% 8.4% 21.3% 11.2% 14.3% West Springfield 8.7%8.4% 8.7% 16.4% 11.9% 12.1% Westfield 6.9%5.5% 6.9% 11.2% 11.3% 8.5% Westhampton 1.9%1.8% 1.9% 3.4% 3.5% 3.7% Wilbraham 3.2%2.0% 3.2% 2.7% 5.1% 4.0% Williamsburg 1.2%6.8% 1.2% 18.0% 5.5% 10.8% Worthington 1.5%3.1% 1.5% 10.4% 3.5% 7.0% Families in Poverty Children in Poverty Individuals in Poverty 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 71 Figure 11: Families in Poverty (2017) Source: American Community Survey 2013-17 5-Year Estimates It is important to note that the poverty rate is drastically different across racial categories in the Pioneer Valley Region. While the overall poverty rate in the region is 16.4%, the poverty rate in the Hispanic and Latino community is nearly twice that rate at 38.7%. Over one third of Hispanic and Latino residents of our communities are living in poverty. The poverty rate is over twice as high for Black residents as it is for White residents (22.7% and 9.3% respectively). 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 72 Figure 11b: Poverty Rates by Race in the Pioneer Valley Source: American Community Survey 2013-17 5-Year Estimates Education The 43 communities in the Pioneer Valley region are served by 39 municipal and regional school districts and 11 charter school districts. Ten of these districts only serve students from kindergarten through sixth grade (one is actually K-5). The four largest school districts are Springfield, Chicopee, Westfield, and Holyoke, which together account for slightly less than half of all the pupils in the region (see Table 7). In all of these districts, as well as many others across the region, school enrollments continued to fall or remain stable. Pioneer Valley school enrollment fell by 0.82% between the 2016-2017 and 2017-2018 school years. During that time period, enrollment declined in 30 of the region’s 38 districts. Enrollment dropped substantially in several areas, including Granby (7.3%), Westhampton (6.2%), Hadley (5.9%), Hampshire (5.4%), and Monson (5.1%). In contrast, six districts had increased enrollments above 1 percent. These districts were Longmeadow (1.3%), Northampton-Smith Vocational & Agricultural (2.5%), Williamsburg (3.2%), and Southampton (5.8%). It is worth noting that many of these rural communities with declining enrollments are places where the population numbers as a whole remain fairly stable or are increasing (see Table 1). For example, population growth was 14.8% in Westhampton and 2.4% in Hadley from 2010 to 2017, but school enrollments declined 11.6% and 25.5%, respectively, between the 2010-2011 and 2017-2018 school years. Between 2010 and 2017, the population of Granby, Monson, Palmer, and Westhampton grew by varying amounts, with Westhampton increasing the most at 14.8% and Palmer increasing by 0.3%, while enrollments for school districts decreased by at least 12% during the same period. 17.2% 13.8% 16.4% 21.6% 36.6% 22.7% 39.8% 20.8% 38.7% 8.1% 12.2% 9.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% Hampden County Hampshire County Pioneer Valley Region Total Poverty Rate Black Poverty Rate Hispanic/Latino Poverty Rate White (Not Hispanic/Latino) Poverty Rate 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 73 Only 13 of the 38 districts have average per-pupil expenditures greater than or equal to the state’s 2016-2017 average per-pupil expenditure of $15,911. The Pathfinder Regional Vocational Technical district had the highest per-pupil expenditure ($23,502) out of all the region’s districts serving students in grades K-12. On the other end of the spectrum, Southampton’s Pre-K to 6th grade had the lowest average per-pupil expenditure at $12,068. In today’s economy, a high school education is the minimum requirement to participate effectively in the job market. While the region’s average high school dropout rate continues to decrease, it remains slightly higher than the state’s (see Table 8). However, in the community with the highest dropout rate (Holyoke) per-pupil spending is above the statewide average, a factor that may help pull the dropout rates down over time. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 74 Public School District Name Cities & Towns in the Pioneer Valley Region Student Enrollment '16-'17 Student Enrollment '17-'18 % Change '17-'18 Average Per Pupil Expenditures 2016- 2017 Average Teacher Salary 2016-2017 Pioneer Valley Region 90,237 89,499 -0.8%N/A N/A Agawam Agawam 3,918 3,864 -1.4% $15,930.54 $69,650 Amherst (PK-6) Amherst 1,148 1,146 -0.2% $21,669.83 $73,844 Amherst-Pelham (7-12) *Amherst, Pelham 1,358 1,343 -1.1% $21,382.27 $82,327 Belchertown Belchertown 2,354 2,323 -1.3% $13,065.78 $65,670 Brimfield (K-6) Brimfield 285 286 0.4% $15,095.17 $73,615 Central Berkshire * Cummington-only 1,620 1,603 -1.0% $15,352.02 $71,924 Chesterfield-Goshen (PK-6)Chesterfield, Goshen 140 136 -2.9% $16,917.69 $76,768 Chicopee Chicopee 7,683 7,544 -1.8% $14,589.38 $79,321 East Longmeadow East Longmeadow 2,630 2,652 0.8% $14,943.82 $77,543 Easthampton Easthampton 1,562 1,541 -1.3% $13,023.44 $64,258 Gateway Blandford, Chester,Huntington, Middlefield, Montgomery, Russell, Worthington 841 831 -1.2% $17,108.27 $60,683 Granby Granby 756 701 -7.3% $14,748.33 $72,894 Hadley Hadley 562 529 -5.9%$14,902 $64,712 Hampden-Wilbraham Hampden, Wilbraham 3,107 3,060 -1.5% $15,242.80 $79,504 Hampshire Chesterfield, Goshen, Southampton, Westhampton, Williamsburg 741 701 -5.4% $17,006.17 $69,105 Hatfield Hatfield 442 436 -1.4% $14,256.31 $59,376 Holland (PK-6) Holland 237 233 -1.7% $13,951.99 $62,171 Holyoke Holyoke 5,344 5,293 -1.0% $17,043.32 $68,779 Longmeadow Longmeadow 2,841 2,877 1.3% $15,248.55 $73,350 Ludlow Ludlow 2,661 2,649 -0.5% $15,754.96 $64,940 Mohawk Trail * Plainfield-only 965 925 -4.1% $16,773.77 $69,844 Monson Monson 979 929 -5.1% $16,433.94 $59,315 Northampton Northampton 2,675 2,658 -0.6% $15,088.46 $61,711 Northampton-Smith Vocational & Agricultural Hampshire County 486 498 2.5% $21,702.97 $62,731 Palmer Palmer 1,427 1,400 -1.9% $14,655.80 $67,092 Pathfinder Regional Vocational Technical ** Granby, Palmer, Monson, Ware 618 614 -0.6% $23,502.13 $74,207 Pelham (K-6)Pelham 132 127 -3.8% $17,186.26 $65,645 South Hadley South Hadley 1,869 1,887 1.0% $14,364.88 $74,979 Southampton (PK-6) Southampton 520 550 5.8% $12,068.02 $72,794 Southwick-Tolland- Granville Regional School District Granville, Southwick, Tolland 1,549 1,519 -1.9% $15,170.51 $63,507 Springfield Springfield 25,633 25,604 -0.1% $15,510.22 $64,844 Tantasqua (7-13) * Brimfield, Holland, Wales 1,839 1,788 -2.8% $13,568.91 $80,279 Wales (PK-6) Wales 164 161 -1.8% $12,877.26 $72,336 Ware Ware 1,226 1,213 -1.1% $13,859.12 $64,329 West Springfield West Springfield 4,094 4,114 0.5% $13,888.90 $67,259 Westfield Westfield 5,543 5,479 -1.2% $14,167.62 $70,275 Westhampton (PK-6) Westhampton 130 122 -6.2% $16,067.10 $66,082 Williamsburg (PK-6) Williamsburg 158 163 3.2% $15,785.15 $75,082 Table 7: Pioneer Valley Region School Districts Profile Source: Massachusetts Department of Education, School District Profiles, 2018 *Enrollment data for regional school district includes all students who attend schools within the Pioneer Valley Region. This includes some students who reside outside the Pioneer Valley Region. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 75 School District 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Massachusetts 3.8% 3.4% 2.9% 2.9% 2.8% 2.5% 2.2% 2.0% 1.9% 1.9% 1.8% Pioneer Valley Region 5.4% 5.1% 4.0% 4.6% 5.0% 4.0% 3.2% 3.1% 2.7% 2.6% 2.4% Agawam 4.4% 1.4% 2.2% 1.1% 1.9% 1.3%1.8%1.6% 0.9% 2.0% 1.0% Amherst-Pelham 2.5% 2.1% 0.8% 1.5% 2.1% 1.6%1.0%0.7% 1.0% 1.5% 1.1% Belchertown 1.6% 1.0% 1.4% 1.7% 1.1% 0.9%0.3%0.9% 0.7% 0.6% 0.8% Central Berkshire 1.6% 1.5% 1.4% 2.2% 1.7% 1.7%1.3%1.8% 1.5% 0.7% 0.7% Chicopee 6.0% 6.2% 5.7% 5.5% 5.4% 4.3%4.3%4.0% 3.9% 3.9% 2.9% East Longmeadow 1.5% 0.9% 0.6% 0.7% 0.4% 0.6%0.3%0.5% 0.8% 0.1% 0.6% Easthampton 2.1% 2.7% 2.0% 2.9% 2.9% 1.6%1.3%0.9% 1.8% 1.1% 1.3% Gateway 4.3% 5.1% 2.4% 2.9% 2.4% 3.9%2.0%2.2% 2.4% 0.9% 3.2% Granby 0.9% 1.1% 2.0% 1.1% 0.8% 0.0%0.3%0.0% 0.0% 0.7% 1.2% Hadley 0.6% 0.6% 1.0% 1.0% 1.0% 1.1%0.0%0.6% 1.7% 0.0% 1.8% Hampden-Wilbraham 1.2% 1.2% 0.7% 0.8% 0.6% 0.8%0.6%0.4% 0.8% 0.5% 0.7% Hampshire 2.9% 1.5% 1.9% 2.4% 1.0% 2.0%1.0%0.4% 0.0% 0.2% 1.4% Hatfield 0.0% 2.3% 2.5% 4.5% 1.6% 0.0%0.0%0.0% 0.0% 0.0% 0.0% Holyoke 11.3% 11.6% 9.8% 9.5% 9.8% 7.7%9.1%6.4% 7.6% 5.4% 5.7% Longmeadow 0.1% 0.0% 0.5% 0.7% 0.5% 0.2%0.0%0.0% 0.0% 0.0% 0.0% Ludlow 1.7% 1.9% 0.9% 1.5% 0.8% 1.9%2.0%0.9% 0.8% 1.6% 0.9% Mohawk Trail 6.2% 5.0% 4.6% 3.6% 2.0% 2.4%2.7%2.3% 2.7% 2.5% 1.6% Monson 4.2% 0.5% 3.3% 2.7% 1.4% 1.2%2.8%2.9% 1.5% 1.6% 5.2% Northampton 1.9% 2.1% 1.2% 1.6% 0.9% 1.5%1.1%0.9% 0.7% 0.8% 0.9% Northampton-Smith 4.1% 1.8% 2.4% 1.3% 1.4% 1.4%1.2%0.5% 0.5% 1.1% 1.0% Palmer 4.1% 6.6% 3.6% 4.9% 7.1% 2.7%2.2%3.4% 3.6% 4.9% 2.0% Pathfinder Voc Tech 1.5% 3.1% 2.8% 2.6% 1.9% 1.4%2.1%1.1% 0.8% 1.5% 1.6% Pioneer Valley Perf Arts 4.5% 4.0% 1.3% 5.1% 2.6% 1.5%0.7%1.5% 2.2% 1.9% 1.9% Sabis International 1.5% 1.2% 0.2% 0.2% 0.6% 0.4%0.2%0.4% 0.4% 0.9% 0.0% South Hadley 3.3% 2.9% 2.0% 2.8% 2.0% 0.8%1.0%1.7% 1.1% 0.9% 0.0% Southwick-Tolland 2.6% 1.8% 4.5% 0.7% 1.6% 1.7%2.0%1.7% 1.7% 1.1% 1.4% Springfield 10.9% 9.7% 9.6% 10.5% 11.7% 10.0%6.5%7.2% 5.1% 4.9% 5.1% Tantasqua 1.2% 0.7% 1.9% 1.2% 1.5% 1.4%0.4%0.9% 0.7% 0.7% 0.6% Ware 7.3% 10.2% 3.6% 4.2% 5.4% 3.8%4.3%5.5% 5.4% 4.7% 1.8% West Springfield 6.3% 6.0% 5.4% 3.4% 5.1% 3.1%2.1%2.3% 2.3% 2.2% 1.3% Westfield 5.3% 3.2% 2.4% 3.3% 2.3% 2.0%2.2%1.2% 1.9% 2.2% 1.2% **Enrollment data for vocational school district includes students who attend vocational schools within the Pioneer Valley Region. This includes some students who reside outside the Pioneer Valley Region. Table 8: Annual High School Dropout Rate in the Pioneer Valley Region 2007-2017 Source: Massachusetts Department of Education, Statistical Reports, 2017 In 2017, 27 out of 31 districts had dropout rates that were either the same or lower than they were in 2007. While most school districts in the region had dropout rates below the regional 2.4% mark, five districts had much higher rates. Holyoke saw 5.7% of its students drop out of high school. Monson schools had the second highest dropout rate in the region at 5.2%. Meanwhile, dropout rates in Springfield have decreased from a high of 11.7% in 2011 to 5.1% in 2017. Holyoke's dropout rate has remained below 8% for the past four years, down from 11.6% in 2008. Chicopee, another of the region’s urban core cities, has reached its lowest dropout rate in over ten years, falling to 2.9% in 2017. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 76 In 2017, just over 32% of Pioneer Valley residents aged 25 years and over had a bachelor’s degree or higher (see Table 9). According to the 2013-2017 American Community Survey 5- year estimates, 11 of the Pioneer Valley’s 43 communities had a higher percentage of college graduates than the statewide average (42.1%) (See Figure 12). In five communities (Amherst, Longmeadow, Pelham, Northampton, and Williamsburg) more than 50% of the residents had a bachelor’s degree or higher. In contrast, there were seven communities (Chicopee, Wales, Springfield, Ware, Chester, Ludlow, and Holyoke) where the proportion was at or below 25%. Given the region’s rich endowment of higher education institutions, some of these rates are lower than expected. Other indicators, however, point towards the beginning of a positive trend. There has been a 17% increase in the population 25 years and over who have attained a bachelor’s degree or higher since 2007 (see Table 9). Additionally, the number of people 25 years and over who are high school graduates or higher increased by 7.5%. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 77 Table 9: Educational Attainment in the Pioneer Valley Region - 2000 and 2017 Source: U.S. Census Bureau, American Community Survey 2013-2017 1-yr Estimate *Includes Equivalency 2007 Population % of Population 2017 Population % of Population 10 Year % Change Population 25 Years and Over Hampden County 299,425 100.0% 318,892 100.0% 6.1% Hampshire County 96,581 100.0% 99,606 100.0% 3.0% Pioneer Valley Region 396,006 100.0% 418,498 100.0% 5.4% Less Than 9th Grade Hampden County 17,067 5.7%18,284 5.7% 6.7% Hampshire County 2,704 2.8%1,110 1.1% -143.6% Pioneer Valley Region 19,771 5.0%19,394 4.6% -1.9% 9th to 12th Grade, No Diploma Hampden County 32,637 10.9% 29,563 9.3% -10.4% Hampshire County 5,022 5.2%3,433 3.4% -46.3% Pioneer Valley Region 37,660 9.5%32,996 7.9% -14.1% *High School Graduate Hampden County 107,194 35.8% 94,542 29.6% -13.4% Hampshire County 25,111 26.0% 25,341 25.4% 0.9% Pioneer Valley Region 132,305 33.4% 119,883 28.6% -10.4% Some College, No Degree Hampden County 49,106 16.4% 60,954 19.1% 19.4% Hampshire County 14,777 15.3% 13,576 13.6% -8.8% Pioneer Valley Region 63,883 16.1% 74,530 17.8% 14.3% Associate's Degree Hampden County 23,655 7.9%28,565 9.0% 17.2% Hampshire County 7,630 7.9%9,058 9.1% 15.8% Pioneer Valley Region 31,284 7.9%37,623 9.0% 16.8% Bachelor's Degree Hampden County 43,716 14.6% 53,019 16.6% 17.5% Hampshire County 20,185 20.9% 24,783 24.9% 18.6% Pioneer Valley Region 63,901 16.1% 77,802 18.6% 17.9% Graduate or Professional Degree Hampden County 26,050 8.7%33,965 10.7% 23.3% Hampshire County 21,248 22.0% 22,305 22.4% 4.7% Pioneer Valley Region 47,298 11.9% 56,270 13.4% 15.9% High School Graduate or Higher Hampden County 249,720 83.4% 271,058 85.0% 7.9% Hampshire County 88,855 92.0% 95,024 95.4% 6.5% Pioneer Valley Region 338,575 85.5% 366,082 87.5% 7.5% Bachelor's Degree or Higher Hampden County 70,065 23.4% 87,058 27.3% 19.5% Hampshire County 41,337 42.8% 47,114 47.3% 12.3% Pioneer Valley Region 111,402 28.1% 134,171 32.1% 17.0% 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 78 Figure 12: College and University Graduates Source: US Census Bureau, American Community Survey 5-Year Estimates 2013-2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 79 Table 10: Number of College Graduates from the Pioneer Valley Region's Higher Education Institutions Source: Integrated Postsecondary Education Data System (IPEDS), 2017 Our region’s relatively low educational attainment rates, despite the existence of 13 area colleges and universities (see Table 10), demonstrates the Pioneer Valley’s continuing struggle to retain those locally college-educated persons who possess the skills and knowledge critical for the health of the region’s economy. The University of Massachusetts, Amherst, a leading national research university, anchors the Five College area of the Pioneer Valley. The other members of the Five College group are the prestigious Smith, Mount Holyoke, Amherst, and Hampshire colleges. Complementing the Five College consortium is a collaboration of eight area schools centered in the greater Springfield area. These include: American International College, Bay Path College, Elms College, Holyoke Community College, Springfield College, Springfield Technical Community College, Western New England University, and Westfield State University. Together, these 13 colleges and universities afford the residents and employers of the Pioneer Valley a multitude of opportunities and advantages that are unique to the region. These assets will undoubtedly continue to aid in the region’s economic development initiatives. College or University Location 2013 2014 2015 2016 2017 American International College Springfield 1,094 1,359 995 1,511 1,113 Amherst College Amherst 625 473 471 432 483 Bay Path College Longmeadow 744 819 797 947 975 College of Our Lady of the Elms Chicopee 415 527 545 523 576 Hampshire College Amherst 316 328 291 342 295 Holyoke Community College Holyoke 958 1,105 1,056 1,044 989 Mount Holyoke College South Hadley 619 598 662 576 577 Smith College Northampton 885 842 855 870 802 Springfield College Springfield 943 941 965 1,005 926 Springfield Technical Community College Springfield 1,099 1,116 1,105 1,051 1,077 University of Massachusetts Amherst 7,415 7,755 7,771 7,876 8,328 Western New England University Springfield 940 913 1,031 1,128 1,110 Westfield State University Westfield 1,362 1,447 1,463 1,428 1,389 Total Graduates 17,415 18,223 18,007 18,733 18,640 Graduates 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 80 The Economy The Workforce and Employment After experiencing the highest unemployment in many years in 2010, the Pioneer Valley’s economy has strengthened, evident in its decreasing unemployment rates. Unemployment rates lowered from 9.4% in 2010 to 7.8% in 2012. Following a slight increase to 8.0% in 2013, unemployment rates fell to 4.3%, the Pioneer Valley’s lowest rate since 2001, in 2018. Meanwhile, employment levels fell from 2007 to 2013, reaching a low of 273,446 in 2013. However, since then, employment has rapidly increased, reaching 314,493 in 2018. Mirroring trends in the Pioneer Valley, unemployment has continued to fall both nationally and at the state level. Nation-wide, unemployment reached a low of 3.9% in 2018 from a high of 9.6% in 2010, and the Massachusetts rate fell from 7.3% in 2011 to 3.4% in 2018. These rates are below 2007 figures, reflecting recovering national and state economies. Figure 13: Unemployment Rates Source: U.S. Bureau of Labor Statistics, MA Office of Labor and Workforce Development, 2018 While the labor force gained strength between 2010 and 2011, rising to the highest levels in twenty years (314,556 participants), this trend was followed by an overall decline in the subsequent years, decreasing by 6.663 participants between 2012 and 2015. There was a slight rebound in 2013, yet with fewer than 308,000 people, this was the second smallest labor force of the Pioneer Valley since the year 2000 (see Figure 14). Between 1995 and 2005, the 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 81 number of people who work in the Pioneer Valley rose from 273,692 to 294,446 (a gain of 20,774 jobs); however, between 2005 and 2015, the number of people employed fell by 5,375 jobs. While the labor force shrunk by 3.097 workers, between 2005 and 2015, the number of people unemployed increased by 2,278 (see Figure 13). Since 2015, both the labor force and employment have steadily increased, with labor force and employment increasing by 16,792 and 21,450, respectively, from 2015 to 2018. Figure 14: Pioneer Valley Region Labor Force and Employment with Trend Lines Source: MA Office of Workforce Development, 1994-2018 Unemployment claims have fluctuated greatly over the last few years, demonstrating the unpredictable nature of the economic recovery. While there was a decline in the number of new unemployment claims in 2011, there was an increase in unemployment claims in 2012. Data available for the first portion of 2013 showed another decrease in new unemployment claims. Though there was a downward trend in unemployment claims from 2008 to 2013, there were overall more unemployment claims from 2015 to 2018. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 82 The number of individuals filing new claims for unemployment insurance tends to fluctuate markedly by month, but December traditionally sees the highest number of new claims as employers let go of workers they had hired for the holiday season. Therefore, comparing new claims from December to December provides a helpful measure of economic health. In December 2015, the number of new claims in Franklin, Hampshire, and Hampden Counties was 7,322. In 2016, the December new-claims figure dropped to 6,747 and in 2017 it was down to 6,557. In December 2018, the number of claims were lower than December 2010, (6,146 and 6,361, respectively) hinting at a recovering economy (Figure 15). Figure 15: New Unemployment Insurance Claims, 2008 to 2018 Source: MA Office of Labor and Workforce Development, Unemployment Insurance Claims, 2003-2018 Note: This data is only available by Workforce Investment Board, so it includes Franklin County. Additionally, data was not available from June 2013-June 2015 Employment Distribution The region’s economy is in transition. Manufacturing was once the mainstay of the region’s economy, employing more than 29 percent of the workforce in 1980. Like most of the nation, service sector employment is increasing in the Pioneer Valley region while the number of manufacturing jobs has decreased. Examples of professions in the service sector include healthcare, education, and other industries that focus on customer-provider interactions: automotive/household goods repair, beauty salons and barber shops, funeral homes, political organizations, and pet care. From 1990 to 2000, the service sector’s share of total private sector 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 83 jobs grew from 36.0 to 40.9 percent and as of 2017 the service sector comprised about 85.9% of the private sector. Manufacturing’s share of jobs declined from 14.4 % in 2000 to 7.7% in 2017. Between 2012 and 2017, the fastest growing industries in the Pioneer Valley region were healthcare and social assistance, transportation and warehousing, wholesale trade, construction, and administrative and waste services (Figure 16). Health care and social assistance alone grew by 38%, and provided 24.1% of all employment in the Pioneer Valley in 2017. Transportation and warehousing grew by 14%, and wholesale trade grew by 13%. In 2017, the four largest industries in the Pioneer Valley region, by total employment, were healthcare and social assistance, educational services, retail trade, manufacturing, and accommodation and food services. These four sectors account for 65% of the employment in the Pioneer Valley region. Figure 16: Employment in the Pioneer Valley Region by Major Industry, 2012 and 2017 Source: Massachusetts Department of Workforce Development, ES-202 Program, 2017 Note: Beginning with the first quarter 2013, a code change for employees from private households (NAICS 814110) into services for the elderly and persons with disabilities NAICS 624120) moved 33,960 employees in Massachusetts in January 2013 on QCEW. Despite the large number of people employed in manufacturing, employment in the industry fell 7% between 2012 and 2017. This decline represents the ongoing transition from a manufacturing based economy to a service and knowledge based economy. Other industries that experienced significant decreases were: other services (45%), information (14%), and finance and insurance (4%). 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 84 Figure 17: Change in Pioneer Valley Region Employment by Major Industry, 2012 to 2017 Source: Massachusetts Department of Workforce Development, ES-202 Program, 2017 Work in utilities, finance and insurance, and management of companies and enterprises offer the highest weekly wages. Each industry offers a weekly wage greater than $1,500 (see Figure 18). Educational services and healthcare and social assistance, the region’s top employment sectors, have average weekly wages of $1,015 and $877, respectively. One of the region’s growing industries – accommodation and food services– is among the lowest paying with average weekly wages of $359. The particularly low average weekly salary services may be affected by a high rate of part-time workers in this industry. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 85 Figure 18: Average Weekly Wages by Industry in the Pioneer Valley Region, 2017 Source: Massachusetts Department of Workforce Development, ES-202 Program, 2017 Regional Employment Within the Pioneer Valley region, almost half (45.2%) of all employment is located in the urbanized communities of Springfield, Holyoke, and Chicopee, reaching a combined total employment of over 123,000. The northern urban areas, Northampton and Amherst, employ over 37,000 people. Other communities with high employment totals include the suburbs directly around the region’s urban core, such as Westfield, West Springfield, and Agawam each employing over 12,000 people. The City of Springfield alone is home to 29.8% of the region’s jobs. A comparison of average weekly wages and total wages for the region’s employment centers reveals some discrepancies. The total employment in Springfield in 2015 was over 360% the total employment of Holyoke, but the total wages paid was more than 430% of the amount paid in Holyoke, indicative of the much higher average wages for jobs located in Springfield. This is also shown in the $216 difference in the average weekly wages between Springfield ($1,045) and Holyoke ($871). Although workers in Chicopee were paid a comparable average weekly wage ($870) to those in Holyoke, the total employment was lower resulting in lower total wages. There is a significant gap in total employment and average wages between the northern cities of Northampton and Amherst. Both the total employment and average weekly wage is higher in Northampton compared to Amherst. In Northampton, total employment was 19,873, and the average weekly wage was $1,001. In contrast, total employment in Amherst was 17,508, and 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 86 average weekly wage was a slightly lower $995. In a comparison of suburban towns located near the urban core cities, like Agawam, East Longmeadow, and Ludlow, there are higher levels of employment, but lower wages. Total employment was higher in Agawam (12,166) than in East Longmeadow (8,034) or Ludlow (6,885). However, the average wage in Agawam was slightly lower at $899 than in East Longmeadow ($914) but higher than Ludlow ($889). Table 11: Pioneer Valley Region's Top 10 Employment Centers for 2017 Community Average Employment Percent of Region's Employment Average Weekly Wage Total Wages Springfield 81,462 29.8% $1,045 $4,427,349,868 Holyoke 22,329 8.2% $871 $1,011,319,853 Chicopee 19,991 7.3% $870 $904,457,498 Northampton 19,873 7.3% $1,001 $1,034,329,700 Westfield 18,668 6.8% $937 $909,300,472 West Springfield 17,652 6.5% $822 $754,077,162 Amherst 17,508 6.4% $995 $906,056,086 Agawam 12,166 4.4% $899 $568,743,486 East Longmeadow 8,034 2.9% $889 $318,220,112 Ludlow 6,885 2.5% $889 $318,220,112 Source: Massachusetts Department of Workforce Development, 2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 87 The regional map showing unemployment rates by workers’ place of residence in 2017 (Figure 19) indicates that some of the region’s largest employment centers also have high unemployment rates among their residents, suggesting that residents of some urban communities are not benefiting from their proximity to the region’s leading employers. Springfield, which had the greatest number of jobs in the region (as seen in Table 11) also had the highest unemployment rate among residents at 6.4%. Holyoke ranked second for total employment, yet their unemployment rate (5.6%) ranks second highest in the region for residents of the community. Chicopee was the third largest employer in 2017, but had an unemployment rate of 4.6% in 2017. Figure 19: Unemployment Rates by Worker's Place of Residence, 2017 Source: MA Office of Labor and Workforce Development, 2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 88 A comparison of the total employment in the top employment centers in 2017 (Table 11) and the labor force (Figure 20) indicates that not all of the region’s employment centers are importing workers from other communities. In communities such as Agawam, Amherst, Chicopee, and Westfield, the number of workers living there were larger than the number of jobs – indicating that these communities must export workers to other communities. However, the total employment in Springfield, Holyoke, Northampton and West Springfield in 2017 exceeded the number of workers living in those cities in the same year. Therefore, those regional employment centers are attracting workers from other cities and towns in the region. The high unemployment rate for residents of the region's larger cities suggests that there is a skills mismatch between the residents and the needs of employers in these communities. Figure 20: Labor Force by Place of Residence, 2017 Source: US Bureau of Labor Statistics, Local Area Unemployment Statistics, 2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 89 Regional Employers The Pioneer Valley region’s economy is rooted in small businesses. About 94% of businesses in 2011 and 2016 were firms of fewer than 50 employees (Figure 21), and approximately 70% of firms had fewer than 10 employees. Figure 20: Numbers of Employers by Size in the Pioneer Valley Region, 2011 and 2016 Source: U.S. Census Bureau, County Business Patterns, 2011 and 2016 The percentage of firms employing between 100 and 499 people was 5.5% in 2017 and 0.6% firms had more than 500 employees in 2017 (Figure 21). Among the region’s largest employers are Baystate Health, Mercy Medical Center, Cooley Dickinson Hospital, and Holyoke Medical Center. These large health service sector employers are located in three of the region’s top employment centers: Springfield, Holyoke, and Northampton (Table 11). In addition, seven of the region’s colleges and universities are also major employers, and some of the largest employers in the region are firms with national name recognition, such as MassMutual Life Insurance Co. and C&S Wholesale Grocers. For more detailed information about commute trends around major employment centers in the region, please see the Commute Trends digest at www.pvpc.org. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 90 For extensive analysis of the businesses that are growing in the region, please see the Pioneer Valley Growth Business Study completed in 2013. The full study and executive summary are also available on the PVPC website. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 91 Table 12: Major Employers in the Pioneer Valley Region in 2017 Company Name Location Primary Industry Code Total Employees 5,000-9,999 Employees Baystate Health Inc Springfield General Medical and Surgical Hospitals 8,859 Massachusetts University-Amh Amherst Colleges, Universities, and Professional Schools 8,440 Big Y World Class Markets Springfield Grocery and Related Product Merchant Wholesalers 5,600 1,000-4,999 Employees Massachusetts Mutual Life Ins Springfield Agencies, Brokerages, and Other Insurance Related Activities 3,500 Westover Air Reserve Base Chicopee National Security 4,600 Mercy Medical Center Springfield General Medical and Surgical Hospitals 3,415 MGM Springfield Springfield Arts, Entertainment, and Recreation 3,000 Cooley Dickinson Hospital Northampton General Medical and Surgical Hospitals 1,899 ServiceNet Inc Northampton Administration of Human Resource Programs 1,750 Westfield State University Westfield Colleges, Universities, and Professional Schools 1,550 Center for Human Development Springfield Administration of Human Resource Programs 1,500 American Outdoor Brands Corp (formerly Smith and Wesson) Springfield Small Arms Manufacturing 1,480 Holyoke Medical Ctr Holyoke General Medical and Surgical Hospitals 1,416 Smith College Northampton Colleges, Universities, and Professional Schools 1,200 Mt Holyoke College South Hadley Colleges, Universities, and Professional Schools 1,000 Springfield College Springfield Colleges, Universities, and Professional Schools 1,000 Verizon Springfield Communication Services 1,000 500-999 Employees Holyoke Community College Holyoke Junior Colleges 939 J Polep Distribution Svc Chicopee Grocery and Related Product Merchant Wholesalers 925 Baystate Wing Hospital Palmer General Medical and Surgical Hospitals 913 Western New England University Springfield Colleges, Universities, and Professional Schools 855 Springfield Technical Community College Springfield Junior Colleges 792 Peter Pan Bus Lines Springfield Transportation Services 750 Lenox East Longmeadow Machine Tool Manufacturing 650 ISO New England Inc Holyoke Utilities 580 TD Bank Springfield Agencies, Brokerages, and Other Insurance Related Activities 575 Baystate Noble Hospital Westfield General Medical and Surgical Hospitals 564 C & S Wholesale Grocers Inc Hatfield Grocery and Related Product Merchant Wholesalers 500 Hampshire College Amherst Colleges, Universities, and Professional Schools 500 Source: MA Department of Labor & Workforce Development, 2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 92 The Infrastructure Housing Where homes have been built and will continue to get built, as well as the type and characteristics of our housing, is a reflection of land use policies, the strength or weakness of the housing market, mortgage lending practices, housing discrimination, transportation networks, topography, and public infrastructure. Our settlement patterns and built environment are also a reflection of structural issues such as economic security and educational attainment, which taken together can promote or hinder self-sufficiency, mobility and residents' abilities to obtain and maintain stable housing situations. One who does not need to worry about finding a safe and decent place to live can devote time to other pressing concerns, such as education, employment, personal health and community well-being. Housing is a basic human need and one of the most significant expenditures individuals and families face. This region needs a full range of housing opportunities that are affordable to households of all racial and ethnic backgrounds, abilities, and income ranges to ensure that our region remains economically competitive. Housing Market In the first decade of the 2000s, particularly between 2005 and 2007, housing prices rose in the region as well as nationwide. Although the housing market crash impacted the region, with a decrease in median single-family home prices by 14% between 2007 and 2012, the housing market has since returned to pre-recession home prices (Figure 22). Between 2012 and 2017, median single-family home prices increased by 14.6% in the region. The first signal of this shift occurred in 2013 when the regional median sale price for a single family home of $191,382 surpassed the 2009 regional median sale price of $185,060. In 2017, this figure reached $203,820. Figure 22 also shows how household incomes have not kept pace with increased housing costs. Our region has strong and weak housing markets which affect the cost of housing, the quality of housing, and the demand for housing. Figure 23 demonstrates the significant variation of our region’s strong and weak housing markets in the form of single-family home prices. The communities with the strongest housing markets had median sale prices over $300,000, including Amherst, Pelham, Hadley, and Longmeadow. At the same time, more than half of the communities in the region had median sale prices under $200,000. The strong market communities tend to be the most desirable communities in the region. Strong demand for homes in these communities is driven by having good schools, low crime rates, and low poverty rates. Housing in these communities tends to have higher sale prices, home values, and higher rents, which has the effect of limiting the potential for a household with more limited economic means from being able to afford to buy or rent in the community. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 93 The communities with weaker housing markets had median sale prices of single family homes around or below $150,000. Cummington, Chester, and Springfield experienced the lowest home prices in the region with Cummington and Chester at $113,000 and $137,000 respectively, and Springfield at $143,000. Plainfield, Worthington, Chicopee, and Palmer also had lower median sale prices at or below $175,000 levels in 2017 (Figure 23). Our weak market communities tend to have low property values and high vacancies. The main revitalization challenge facing our central cities are weak housing markets. Low property values create a disincentive for homeowners and landlords to make capital or maintenance improvements to their properties because the cost of these improvements can be greater than the overall value of the property or does not increase the value of the property. Divestment from low property values has led to vacant or deteriorating housing, which creates neighborhood blight and makes for unsafe living conditions. Figure 21: Median Household Income and Single-Family Home Prices in the Pioneer Valley Region, 2007-2017 Source: Pioneer Valley Planning Commission, American Community Survey 2017 1-year estimate Studies conducted as part of the regional housing plan found that weak market cities and towns in the Pioneer Valley would like to see their communities become desirable places to live— places of choice—and see a greater variety of market rate housing options created in the vacant or underutilized upper story spaces of their downtowns as well as on vacant lots and within underutilized properties that would attract moderate, middle, and upper income households. Anecdotal evidence suggests that there are young professionals, empty-nesters, or two person households who desire to rent apartments or buy condominiums in our cities but are unable to find housing that suits their tastes in areas they find safe and that have ready access to goods and services. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 94 However, the depressed housing market makes it financially difficult to develop new housing on infill lots or within existing mill and commercial buildings or renovate existing multi-unit residential buildings for households that would pay market rent. Housing developers point to the problem that current market rents are typically insufficient to support the cost of new construction or significant rehabilitation of multi-unit housing. The limited state or federal public subsidies that exist to help developers fill the financing gap require income-restricted housing as a condition of receipt of these funds. These restrictions are good practice in many instances but can also serve as one more barrier to attracting an economically diverse population to urban neighborhoods and to increasing home-ownership rates. A weak housing market can exist in spite of an unmet need for housing that is affordable to residents in that community. A key reason for this disparity is the very low incomes of residents in our weak market cities and towns. There is tremendous demand for existing affordable housing units, and these programs all maintain waiting lists. The strong demand for affordable housing units and lack of sufficient supply of these units is a statewide issue. Figure 22: Median Sale Price of Single-Family Homes in the Pioneer Valley Region (2017) Source: The Warren Group 2015 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 95 Housing Affordability Declines in housing prices over the past decade have not solved the issue of housing affordability, as incomes have decreased when inflation is factored in. It is generally accepted that a household can afford a home up to a price that is equal to three times the household yearly income. Households who pay more than this for a home are considered “cost-burdened” and may have difficulty affording necessities such as food, clothing, transportation and medical care as well as saving for their future and that of their families. The median household income in the Pioneer Valley in 2017 of $55,666 translates into approximately $167,000 of purchasing power for a home. Only four out of forty-three communities in the region had median housing prices equal to or less than that amount in 2017. Springfield and Holyoke have many homes available for under $150,000 and are actively promoting their affordable home-ownership opportunities through programs such as “Buy Springfield Now” and “Buy Holyoke Now” as a way to attract first-time homebuyers into their cities. At the same time, several communities such as Amherst, Pelham and Hadley have remained consistently unaffordable to households that earn below the region’s median household income. Figure 23: Pioneer Valley Region Housing Affordability Ratio (Median Price/Median Income), 2007- 2017 Source: U.S. Census Bureau ACS; SAIPE; Pioneer Valley Planning Commission, 2007-2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 96 Another way to examine the problem is through the use of a housing affordability ratio (See Figure 24). The Pioneer Valley’s housing affordability ratio can be calculated by dividing the median price of a single family home by the median household income. Therefore an affordability ratio above 3.0 is of concern because it means that, statistically, a household with the median income in the region cannot afford a single family home at the median price. The affordability ratio steadily climbed starting in 1997, and passed the 3.0 threshold in 2001. Although the affordability ratio decreased between 2007 and 2012, it increased slightly from 3.46 in 2012 to 3.66 in 2017. This is an indication that the increase in housing prices between 2012 and 2017 has outpaced the concurrent increase in incomes, thereby limiting housing affordability. A ratio of 3.66 is of concern. In the long run, the issue of housing affordability will continue to be very important, especially if incomes do not increase or if increases in income do not keep pace with rising housing prices. Transportation Vehicle Roadways The Pioneer Valley area is considered the crossroads of transportation in western Massachusetts. Situated at the intersection of the area’s major highways, Interstate 90 (Massachusetts Turnpike) traveling east-west and Interstate 91 traveling north-south, the region offers easy access to all markets in the eastern United States and Canada. Major southern New England population centers are accessible within hours. The interstate expressways (I-90 and I-91) link most of the major urban centers in the region. The basic highway network, including interstate highways, U.S. numbered routes, state routes, and other traffic arteries, provides access to all municipalities in the region, both urban and rural. The pattern of principal arterial highways in the region is radial, extending outwards from each of the region’s major centers, a consequence of development and topographic influences. Of the existing transportation facilities in the Pioneer Valley region, major bridge crossings remain a focal point of regional transportation concerns, as many streets and highways converge into a limited number of crossings over the Connecticut, Westfield, and Chicopee rivers. Table 13: Driving Distances and Times from Springfield to Select Urban Centers Destination Distance in Miles Estimated Driving Time Albany 85 1.5 hours Boston 91 1.5 hours Montreal 301 5.5 hours New York City 140 3.0 hours Philadelphia 260 5.0 hours Washington, DC 400 8.0 hours Source: PVPC, Regional Transportation Plan for the Pioneer Valley – 2016 Update 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 97 Table 14: Major Interstate Highways Serving the Pioneer Valley Region Interstate Highway Principle Orientation Number of Interchanges in the Region Road Mileage in the Region Toll Road? I-90 East/West 6 46.08 Yes I-91 North/South 22 31.17 No I-291 Connector (Springfield to I-90) 6 5.44 No I-391 Connector (I-91 to Chicopee/Holyoke) 6 3.82 No Source: PVPC, Regional Transportation Plan for the Pioneer Valley – 2016 Update In general, traffic on the region’s roadways has been increasing. Between 1999 and 2009 the estimated number of daily vehicle miles traveled (DVMT) in the Pioneer Valley region rose about nearly half of a million miles per day, from about 14.76 million to about 15.23 million. The magnitude of increase is shared in the region’s rural areas. Table 15 presents the commute times for each of the Pioneer Valley communities in 2000 and 2017. The 4.6% increase in commuter times can be attributed to several major trends including a rise in vehicle ownership and the onset of several major roadway improvement projects, such as the Great River Bridge in Westfield. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 98 Table 15: Pioneer Valley Region Average Commute Times to Work Source: U.S. Census Bureau, 2000 Decennial Census and 2013-17 American Community Survey 5-Year Estimates 2000 2013-2017 % Change Massachusetts 27 29.3 8.5% Pioneer Valley Region 21.8 22.8 4.6% Hampden County 21.8 22.6 3.7% Hampshire County 21.9 23.2 5.9% Agawam 20.5 21.2 3.4% Amherst 18 17.1 -5.0% Belchertown 28.1 28.2 0.4% Blandford 37.5 36.6 -2.4% Brimfield 30.1 35.8 18.9% Chester 38.9 35.7 -8.2% Chesterfield 29.4 32.8 11.6% Chicopee 19.3 19.1 -1.0% Cummington 38.3 33.3 -13.1% East Longmeadow 21.9 24.7 12.8% Easthampton 21.1 24.2 14.7% Goshen 31 32.1 3.5% Granby 20.6 24.7 19.9% Granville 29.5 34.6 17.3% Hadley 21.9 19.9 -9.1% Hampden 26.4 27.4 3.8% Hatfield 20.9 21.3 1.9% Holland 34.2 32.9 -3.8% Holyoke 18.6 19.8 6.5% Huntington 34.4 31.4 -8.7% Longmeadow 20.3 22.9 12.8% Ludlow 21.3 24.7 16.0% Middlefield 41.6 38.3 -7.9% Monson 29.5 28.8 -2.4% Montgomery 29.7 30.1 1.3% Northampton 20 21.6 8.0% Palmer 22.9 28 22.3% Pelham 22.3 23.6 5.8% Plainfield 33.5 33.9 1.2% Russell 28.1 29.6 5.3% South Hadley 19.4 22.2 14.4% Southampton 24.8 27.4 10.5% Southwick 26.4 27.9 5.7% Springfield 21.5 21.3 -0.9% Tolland 39.4 38.8 -1.5% Wales 36.7 35.1 -4.4% Ware 25.8 28.1 8.9% West Springfield 20.9 21.5 2.9% Westfield 22.6 22.1 -2.2% Westhampton 25.2 24.4 -3.2% Wilbraham 24.3 26.8 10.3% Williamsburg 23.3 25.6 9.9% Worthington 40.5 39.4 -2.7% Mean Driving Time to Work (minutes) 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 99 Transit Routes The Pioneer Valley has a well-developed public transit system that includes local bus service, ADA and senior paratransit van service, intercity bus service, and passenger rail. In addition, there are formal and informal park-and-ride lots, as well as ridesharing and car rental services that offer more options for accessing and leveraging transit services. Train service was expanded to Northampton and Holyoke in 2015, and additional passenger rail services and facilities are expected to begin operating in the fall of 2019. These will greatly enhance transit capacity in the region. All of these elements are vital contributors to mobility options for the region’s residents. The Pioneer Valley Transit Authority (PVTA), established in 1974, is the largest of the Commonwealth’s 14 regional transit authorities. A total of 24 municipalities are members of the PVTA service area. PVTA oversees the operation of 189 buses and 142 vans throughout Hampden and Hampshire Counties, as well as two municipalities in Franklin County. The PVTA system has 42 scheduled bus routes that provide service in urban centers, as well as outlying suburban and rural areas. Figure 24: Pioneer Valley Transit Authority System Wide Annual Bus and Van Trips 2008-2018 Source: PVTA Annual Reports Fourteen towns in the PVPC region (which are not members of PVTA) contract with the Franklin Regional Transit Authority (FRTA) based in Greenfield, for senior paratransit service. These towns are: Blandford, Chester, Chesterfield, Cummington, Goshen, Huntington, Middlefield, Montgomery, Plainfield, Russell, Southampton, Southwick, Westhampton, and Worthington. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 100 Intercity bus service in the region is provided by Peter Pan Bus Lines, Greyhound Lines and Megabus. These companies operate a mix of routes to destinations within the region, as well as connections throughout New England and the country. Other private bus carriers provide charters and package tours. The regional transit system includes the following bus terminals and hubs:  Springfield Union Station, an intermodal transportation center, is the major bus station in western Massachusetts, serving as the hub for 20 PVTA Springfield-area routes, Peter Pan regional service, and Greyhound regional routes.  Holyoke Transportation Center is the hub for 8 PVTA routes, as well as limited service by Peter Pan.  Northampton Bus Terminal is served by Peter Pan and Greyhound, with connections to 10 PVTA and FRTA routes at the nearby Academy of Music stop.  Amherst, PVTA and Peter Pan service is available at the UMass Haigis Mall and Amherst Town Common. VanGo also operates service from Haigis Mall to Boston during the academic year. Passenger rail stations for Amtrak service are located at Springfield’s Union Station (Lyman Street), Northampton Station (Pleasant Street), and Holyoke Station (Main Street). Amtrak's most frequent service is at Union Station, where 18 trains per day are available to and from Springfield that provide extensive service within the Northeast. Passenger rail service is provided on east-west (Lake Shore Limited) north-south (Vermonter) and regional (Northeast Corridor) routes through the region. The Massachusetts Department of Transportation recently realigned Amtrak Vermonter service north of Springfield to restore passenger rail service to the Connecticut River line through Holyoke, Northampton and Greenfield. The success of this service has spurred interest in additional north/south passenger rail service. In the fall of 2019, MassDOT is expected to begin a multi-year pilot service between Springfield and Greenfield. In addition, the Connecticut Department of Transportation’s New Haven-Hartford-Springfield (NHHS) commuter rail project began operating service on November 12, 2018. The new service includes six additional trips per day (3 northbound and 3 southbound) between Springfield and New Haven. Commercial van shuttles serve an important segment of the region’s transit market. Many operators focus on service to and from airports and rail stations in New England. Service to Bradley International is provided hourly from most locations the Pioneer Valley. Service to Boston, Providence, and New York is also provided, though not on a scheduled basis. Non- profit organizations also operate shuttles, typically for their clients. Examples include municipal councils on aging, day care providers and social service agencies. There are more than 20 taxi companies operating in the region. Taxi companies provide a vital link in the transportation system by offering mobility during times and at locations when public transportation is not available. Ride-sharing services have also become more widespread in the Pioneer Valley in the last several years. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 101 Non-Motorized Transportation Bicycling and walking are popular transportation options in the Pioneer Valley. Historic town centers, vibrant central business districts and a variety of destination are within easy walking or bicycling distance from many residential areas. An expanding network of bikeways, sidewalks, and accommodating roadways provide residents with a variety of transportation alternatives. Many of the region’s city centers offer easily accessibility for pedestrians and are supported by a strong transit network. To support the increasing number of people who walk and bike, the Pioneer Valley Metropolitan Planning Organization (MPO) adopted a Regional Transportation plan that includes policy- related actions and physical projects that local, state, federal and regional partners can collaborate on to improve conditions for pedestrians and bicyclists. The plan includes recommendations for bicycle and pedestrian features in the design and reconstruction of roadway projects, sets goals for bicycle and pedestrian safety, and promotes bicycling and walking through “Complete Street” initiatives. The Pioneer Valley land use plan “Valley Vision 4” includes zoning and community development tools to foster environments that support bicycling and walking. The Valley Vision plan (updated in 2013) lays out a detailed strategy to promote bicycling and walking through compact, mixed use growth in and around urban, town, and village centers. The Pioneer Valley Transit Authority supports a popular “Rack and Roll” bikes-on-buses program to the entire region. All fixed route buses in the PVTA fleet (40 routes/180 buses) are equipped with racks, allowing cyclists to transport their bikes on public service transit lines throughout much of Hampden and Hampshire County. In 2017 the PVTA bike racks were used 62,778 times (excluding UMass shuttle trips). In 2016 MassDOT launched the Complete Street Funding Program to incentivize municipal best practice in Complete Streets policy and implementation. Thirty-eight (38) communities have participated in MassDOT sponsored Complete Streets training, and 18 communities have actively participated in the Complete Streets Program (as of 2/2019). Through the program our communities have initiated projects to make local streets safer and more inviting for people to walk, run, and bike. These efforts will improve the health of Pioneer Valley residents through improved opportunities to stay active, reducing chronic disease. As of 2019 twelve communities in the region have adopted Complete Streets Policies including: Williamsburg, Amherst, South Hadley, Holyoke, Easthampton, Northampton, Holyoke, West Springfield, Agawam, Springfield, Longmeadow, and Granville. Locally, many Pioneer Valley communities have followed MassDOT’s lead by incorporating “Complete Streets” concepts into the planning and design of local road projects. The City of Springfield adopted a Complete Streets Bicycle and Pedestrian Plan while the City of Holyoke and Towns of South Hadley and Amherst adopted their own bicycle and pedestrian plans. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 102 During the summer of 2018, several municipalities in the Pioneer Valley launched Valley Bike Share, a bicycle sharing program. Fives municipalities currently have stations (Holyoke, Springfield, Amherst, South Hadley, and Northampton) and the number is set to increase with Easthampton adding to the system in 1019 and several other communities expressing interest. With over 800 members, the Valley bike share logged 43,000 trips and 185,000 miles in the first season. The bike share opened 2019 season with 54 stations and a goal of 540 bikes. The region has an ever expanding network of off-road facilities ranging from traditional bike paths to multi-use trails or linear parks. The PVPC assisted local municipalities on the installation of more than 350 bicycle parking racks throughout the region’s urban cores with the capacity to secure more than 900 bicycles. The PVPC also produced a series of instructional bike-rack installation videos to assist communities and nonprofit organizations which are available at the PVPC’s video hosting site: http://www.youtube.com/user/PVPCgroup. Currently seventeen communities provide over 90 miles of bicycle lanes, multi-use paths or “rail trails” in the region, while several communities have similar projects in the design phase. The Pioneer Valley communities are active participants in “Baystate Bike Week” with dozens of activities hosted during the third week of May each year (http://baystatebikeweek.org/). 2019 will be the twentieth anniversary of this popular program in the Pioneer Valley. The Norwottuck Branch of the MassCentral Rail Trail is one example of the region’s commitment to bicycling and walking. The ten-mile Norwottuck Trail links the communities of Northampton, Hadley, Amherst, and Belchertown, and facilitates travel to and from educational institutions, downtown commercial areas, major employment centers and residential neighborhoods. Weekend traffic counts show an average of 1,200 people per day utilize the Trail during the peak season which includes when local colleges and the University of Massachusetts, Amherst are in session. The Massachusetts Department of Conservation and Recreation (DCR) and Massachusetts Department of Transportation (MassDOT) reconstructed the original 1992 “Norwottuck Rail Trail” (now part of the MassCemtral Rail Trail) in June 2015 after 2 years of construction. The reconstructed path is wider in most places, incorporate a number of accessibility and intersection improvements including re-decked the bridges. In 2018 construction was completed on a MassDOT tunnel project by Northern Construction Services. The $4.4 million tunnel under the active north-south Amtrak rail corridor provides significant connection between the MassCentral Rail Trail and the New Haven and Northampton Canal Greenway and the Manhan Rail Trail. In 2019 the Town of West Springfield opened the newest section of the Connecticut River, addressing a need for visual access to the river while providing improved access to canoe launch. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 103 Eighty-three (83) schools in the Pioneer Valley activity participate in the Massachusetts “Safe Routes to School Programs.” Safe Routes to School (SRTS) promotes healthy alternatives for children and parents in their travel to and from school. The program educates students, parents and community members on the value of walking and bicycling and provides funding for sidewalks, crosswalks, and traffic calming measures. Funding for construction projects is also available through the Safe Routes to School Program. School that have participated in this program in the past include the William E. Norris School in Southampton, Jackson Street School in Northampton, Doering and Robinson Park Schools in Agawam, Blueberry Hill School in Longmeadow, and Bridge Street School in Northampton. The “revised” Safe Routes to School program also includes funding for painting and markings in the “lines and signs” part of the program. PVTA Bike Rack Usage through 2017 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 104 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 105 Appendix C: Committed Projects in the Region 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 106 Major Committed Projects of Regional Significance The following regionally significant projects are planned or under way in the Pioneer Valley region in 2019: Project Key Implementer(s) Public or Private? Total Estimated Cost North Square at the Mill District, Amherst Beacon Communities; W.D. Cowls Private $47.5 M Ludlow Mills Clock Tower Building – Mixed Use Winn Development Private $40 M One Ferry Street Mill Mixed Use Redevelopment, Easthampton Michael Michon Private $43 M 31 Elm Street Mixed Use Redevelopment, Springfield OPAL Development, Winn Development, MGM Springfield Private $56 M Big Y Foods Distribution Center Expansion, Springfield Big Y Foods Private $35 M Cabotville Mills Mixed Use Development, Chicopee Silverbrick Group Private $45 M Colvest Group Bank and Retail Development, Holyoke Colvest Group Private $8 M Educare Springfield Davis Foundation; Holyoke- Chicopee-Springfield Head Start Public/Private $14 M Hotel and Indoor Climbing/Skydiving Pioneer Valley Hotel Group Private $37 M J. Polep Expansion, Chicopee J. Polep Private $8 M Burnett Road Hotel and Restaurant Complex, Chicopee Dinesh Patel Private $45 M Springfield YMCA Housing Renovation Home City Development Non-Profit $12 M River Valley Co-op – Easthampton location River Valley Co-op Private TBD 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 107 CRRC Warehouse, Springfield CRRC Private $4 M Way Finders Headquarters Way Finders Public/Private $16 M RiverMills Assisted Living, Chicopee DS Development Private $25 M MassMutual, Springfield Headquarters Improvements Private $50 M Springfield Innovation Center DevelopSpringfield; MassDevelopment Public/ Private $7 M Naismith Memorial Basketball Hall of Fame Renovations Naismith Memorial Basketball Hall of Fame Private $30 M Paramount Theater and Massasoit Building, Springfield New England Farm Workers Council Public/ Private $41 M Check Writers Corporate Headquarters - former Clarke School Check Writers Payroll, Inc. Private $4 M Lyman Mills Redevelopment Mount Holyoke Development Private $7 M TOTAL COMMITTED FUNDS $574.5+ M 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 108 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 109 Appendix D: Business Survey Results 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 110 2018 Pioneer Valley Business Survey In the fall of 2018, PVPC distributed a business survey to local businesses and organizations at two major Chamber of Commerce events in Chicopee and Westfield. The survey sought input on the challenges that employers and their workers are currently facing in the Pioneer Valley Region business environment. In total, 49 individuals completed the survey, representing a diverse range of 36 businesses and organizations. The most critical issue identified by organizations across both communities was the cost of health care for employers and employees. This is not surprising given that most (17/36) of the organizations who participated in the survey were small organizations with less than 25 employees. Other critical issues identified by local organizations included finding qualified high-skill employees, cyber security challenges, and needs for ongoing employee training and skill development. The least critical issue identified by Pioneer Valley organizations was exporting products and services. Over a third (17/49) of survey respondents work for non-profit organizations, which may in part contribute to this low ranking. Disparaging media coverage of the community/region, available business resources not serving the business, and finding financial/planning/legal business help when needed were also identified as less critical challenges facing local organizations. Survey respondents showed overwhelming support for efforts to expand east-west and north-south railway connections, with only one respondent expressing that he or she would not support an expansion. Many respondents emphasized their support for an expansion in the “Comments” section of the survey, with one individual noting that the railway must be affordable for commuters. Other comments touch on the hurdles that permitting, licensure, banking, and state employee regulations create for businesses. Though the findings from the 2018 Business Survey are limited to two communities, they still provide important insight into significant concerns of Pioneer Valley’s businesses and organizations. Complete survey results are below. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 111 Table 1: Name of Business/Organization (# of respondents) A Plus HVAC Inc. (2) A. Crane Construction LLC Aflac Alan J. Stearly, Money Concepts Armbrook Village Baystate Noble (2) Caolo & Bieniek Architects East Mountain Country Club FitChics Unleashed Forum House Governor's Center (2) HCS Head Start Inc. (3) Liberty Mutual Legal Department Liptak Emergency Water Removal Lisa A. Vachon, CPA Living Hope Church MassHire Springfield Career Center (2) Mercy Adult Day Health of Westfield Mestek, Inc (6) NAI Plotkin Netlogix Optimum Health Therapeutic Massage Peppermill Catering LLC Polish National Credit Union (2) Pop Visa Inc. Project New Hope Inc. River Valley Counseling Center Savage Arms Sunshine Village (2) The Chester Foundation Inc. The Westfield News Group (2) Tru by Hilton United Bank Vivid Hair Salon and Spa WMDT 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 112 Table 2: Form of Business/Organization Form of Business/Organization # of Businesses/Organizations Non-Profit 11 Corporation 10 LLC 5 Sole Proprietorship 4 No Response 3 Other 2 Table 3: Size of Business/Organization # of Employees # of Businesses/Organizations 1-24 17 25-49 4 50-99 2 100+ 9 Other 1 No Response 2 Table 4: Located in a downtown/village center? # of Businesses/Organizations Yes 16 No 13 Other 6 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 113 Table 5: How significant are the following concerns for YOUR business? Topic Weighted Average Health care costs for employer and employees 2.17 Finding qualified high-skill employees 2.12 Cyber security (viruses, hacking, etc.) 1.87 Needs for ongoing employee training and skill development 1.81 Cost of natural gas, propane, gasoline, diesel, fuel oil 1.79 Transportation access and conditions, including roads, rail, and/or transit 1.78 Uncertainty over economic conditions 1.75 Staying up to date with computer technology and software 1.74 Reducing energy cost in a cost-effective manner 1.73 Mandatory paid family and/or sick leave 1.72 Finding low-skill/entry-level employees with good "soft skills" 1.67 Electricity cost (rates) 1.67 Government requirements (please note what specifically) 1.67 Access to high-speed internet 1.65 Ease of marketing your business products/services 1.48 Demand for business product or service has decreased over time 1.38 Environmental regulations 1.36 Want to expand but no suitable space available 1.33 Want to grow business but too many obstacles and don't know where to go for help 1.33 Finding business help when needed (financial, planning, legal) 1.33 Available business resources don't serve me or my business (why?) 1.32 Disparaging media coverage of community/region 1.27 Exporting products/services 1.09 Table 6: Do you support our region's ongoing efforts to expand passenger rail connections north-south with New York City and to establish an east-west rail link with Boston? # of Responses Yes 37 No 1 No Opinion 6 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 114 Table 7: Please provide any specifics or other comments below: The Gateway Hilltowns need more promotion (and are working on a marketing campaign - "Gateway Hilltowns - Naturally"), particularly beyond the Hilltowns. There is an unfair and uninformed view of the Hilltowns from too many east of our boundaries. We welcome ideas, promotion, and assistance. PVPC has been a great partner to the Hilltowns and Chester (my town) and we are sincerely appreciative. We just need to get "the word" out more about our spectacular area. Thank you!! Oh, and we NEED East-West rail service! Access to a train that runs between Boston and Pittsfield - with a stop in Chester - will open up the hilltowns to more business, more residents, more awareness. We welcome and encourage any support and assistance in this area. Thank you. Increase in minimum wage - this will be a crisis for state funded non-profits as well as other low- wage/minimum wage employers as well as seniors. It will impact the safety net provided to all citizens throughout Western MA.; Paid Family Medical Leave Act (this will be a workforce issue as well as a huge financial issue for the state and the business community); EMAC One respondent entered multiple checks for "yes" in the "expanding passenger rail" question Ongoing building code issues/changes; Constant permitting hurdles (regarding government requirements) Licensure regulations creating additional increased expenses/cost of staffing, operations and physical plant. (regarding rail connections) Must be affordable for commuters. Tough banking regulation that affect small financial institutions. These regulation came about from what the too big to fail financial institutions and their ways of conducting business. (regarding expanding passenger rail) "I think it will be great having ridden the train from Northampton + I wish it went more often! (regarding the "governmental requirements" question) state employee laws I think Insurance Commissioner needs to look at not allowing some insurance products to be sold 65 years old. Example some working wants Aflac accident policy is 65 years old can pay it. How many people are working in mid 60's, CT allows to age 75. Mandatory sick time is bad for business and if employees use it, could be penalized. Mandated on disability, I have a lot of examples. Aflac has 10 months for childbirth, someone starts work June 1, Starts disability July 1 and has baby on Feb 22, Aflac will not pay. Now does the employee need to pay? Rail concerned about the cost for east west rail. Problem - transportation clients Changes to MassHealth/DMH funding Lack of public transportation for members in Hill towns and after business hours I would like to know how I can get my catering business presence in local Westfield businesses. I know for a fact most of our local businesses are using Holyoke Caterers. Westfield should support Westfield. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 115 Table 9: Business/Organization Type Business/Organization Type # of Businesses/Organizations Social Services 6 Financial Services/Insurance 4 Nursing Home/Assisted Living 3 Manufacturing 2 Utilities 2 Bank 2 Health/Wellness 2 Construction/Architecture 2 Hospital 1 News/Media 1 Real Estate 1 Country Club 1 Legal Services 1 Hair Salon 1 Food Services/Catering 1 Computer Support/Services 1 Transportation 1 Hotel 1 Charity Organization 1 Church 1 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 116 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 117 Appendix E: Economic Resilience Planning 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 118 Disaster Resilience: Business and Economic Development Issues in the Pioneer Valley The business community has a unique set of needs in disaster response, recovery and resiliency. It has been reported that 40% of businesses never reopen after a disaster, and of those who do open, at least 25% fail within two years (U.S. Department of Labor). The business community and those who serve them often experience gaps in disaster response coordination because many of the existing emergency preparedness and response procedures and resources are primarily aimed at residents, municipalities and large institutions. Issues include the need for emergency funds, relocation assistance, and technical assistance to adapt business models to changing conditions. There may be language and/or cultural barriers for many small businesses, and frequently in these cases, they may be underinsured. The Pioneer Valley region experienced three significant natural disasters in 2011: a tornado that destroyed a half-mile wide swath primarily in Hampden County; Tropical Storm Irene that caused flood damage throughout the region particularly in the agricultural sector; and the “October Snowstorm,” a severe winter storm that occurred while foliage was still on the trees. In response to these weather events, the Federal Emergency Management Association (FEMA) announced major disaster declarations for the communities which comprise Hampden and Hampshire Counties. Many businesses needed months and years to recover from effects of these events, which included a tornado, tropical storm, and severe snowstorm. Impacts of these events for businesses included damage to buildings and equipment, loss of data or paper records, loss of inventory, loss of employees (temporarily or permanently), and interruption of business for days or weeks (or longer). In many cases, insurance is inadequate to fully cover losses and/or the company did not have business interruption insurance. Ultimately, the event may result in business failure due to inadequate capital, impacts to the supply chain, loss of customers and entire markets, competition, or overwhelming levels of debt incurred in the effort to start up again. For planning purposes, the most likely natural disaster events in the Pioneer Valley region as identified in the Pioneer Valley Regional Natural Hazard Mitigation Plan include hurricanes, dam failure, flooding, and severe winter storms. Other potential disasters include tornados, drought, wildfires, and earthquakes. The region has also experienced smaller scale but devastating events such as building fires, gas explosions, building collapses, and micro-bursts. Regarding these smaller occurrences, most recently there was a large gas explosion in downtown Springfield, a fire affecting 12 businesses in Hadley, and a building collapse affecting numerous businesses in Holyoke. It is also possible that the region could experience acts of terrorism, or chemical, biological, radiological, or nuclear disasters. In many of these cases, the needs and concerns of businesses are quite similar. This section of the CEDS assesses the systems in place to assist private industry with disaster response and recovery from the federal to the local level. Regardless of the event, what systems and procedures are in place that are automatically activated? 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 119 Existing Disaster Recovery Framework Summary The existing system is the result of a series of disaster recovery laws and policies, beginning with the Disaster Relief Act in 1950 and most recently with the National Disaster Recovery Framework established in 2011 by Presidential Policy Directive (PPD-8: National Preparedness). The new Framework provides a continuum of support from the federal to the state and local level, and is particularly oriented toward incidents that are large-scale or catastrophic.2 Six new “recovery support functions” include housing, infrastructure, economic recovery, health and social services, community planning and capacity building, and natural and cultural resources. Each of these utilize existing governmental agencies and partners to coordinate response efforts. Most relevant to business and economic development needs, the federal government has now designated the Department of Commerce as the lead agency for Economic Development Support, a suggestion made in the past by IEDC and NADO3. This section gives a brief overview of the main components of the system, including federal, state, regional and local entities that are involved in assisting the business community. Federal Disaster Recovery Framework: Economic Recovery Support Function U.S. Department of Commerce - Economic Development Administration (EDA) and Small Business Administration (SBA) The Department of Commerce oversees numerous pre- and post-disaster recovery initiatives in coordination with other federal agencies; those that are discussed here pertain to direct business assistance and involvement. These federal response efforts are intended to provide technical assistance, data, and seed funding to businesses after a disaster event in order to facilitate private re-investment. The U.S. Economic Development Administration (EDA) is the coordinating agency on behalf of the Department of Commerce for economic recovery from a disaster. The EDA and a diverse group of partner agencies, including the Small Business Administration, assist affected communities primarily through technical assistance and funding that leverages existing resources. Immediately following a disaster, EDA staff is deployed to affected areas, working with Economic Development Districts and other local and regional economic development practitioners, to collect on-the-ground information and assess needs. When funding is available, it may be used for strategic planning and technical assistance, disaster recovery coordinators, infrastructure design/engineering and construction, and revolving loan funds. All of these may involve business assistance. 2 Federal Emergency Management Agency (FEMA), U.S. Department of Homeland Security. National Disaster Recovery Framework: Strengthening Disaster Recovery for the Nation. September 2011. 3 International Economic Development Council (IEDC) and National Association of Development Organizations (NADO), An Improved Federal Response to Post-Disaster Economic Recovery: Final Report. January 2010, p. 9. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 120 The U.S. Small Business Administration (SBA) partners with local organizations including SCORE, the SBDCs (Small Business Development Centers) and local chambers of commerce, to conduct local outreach after a disaster occur and provides direct assistance to businesses through its Disaster Loan Program. For businesses, loans are available for physical damage and/or economic injury, with low interest rates and very long repayment periods (up to 30 years). The SBA Office of Disaster Assistance is able to expand capacity as needed to meet small to large-scale disasters, utilizing its network of district offices and additional staff as needed.4 Federal Emergency Management Agency (FEMA) FEMA’s role is separate from most business-related concerns. However, businesses are required to register with FEMA first following certain types of presidentially declared disasters, so that an accurate assessment of damages can be made. They are then asked to register and apply separately to SBA for loans. In other disasters, they may either not be eligible for SBA loans or may be able to apply to SBA without going to FEMA first. Thus, the role of FEMA vs. the SBA is confusing to most businesses, and they find it to be cumbersome to deal with both agencies. Massachusetts State Agencies and Organizations Executive Office of Housing and Economic Development (EOHED) The EOHED is the state agency that addresses business needs, including disaster response and recovery. The Division of Community Development within the EOHED administers Community Development Block Grants (CDBG) and CDBG-DR or Disaster Recovery grants (see below), and the Office of Business Development has regional staff that is available to assist in times of disaster. The EOHED Secretary or staff conducts outreach to sites affected by major disasters, assesses needs, and coordinates response, including setting up and participating in Disaster Recovery Centers. After the 2011 disasters, a conference call protocol was set in place, originally initiated by the Massachusetts Office of Travel and Tourism (MOTT). The call connects the state agencies including EOHED, MOTT, and MassDOT with Regional Tourism Council (RTC) Directors, Chamber of Commerce Directors, and others throughout the affected regions. State officials seek information and reports about what is happening in each region, generally daily for a few days, then periodically as needed. Executive Office of Energy and Environmental Affairs (EOEEA) The EOEEA has established a Climate Change Clearinghouse for the Commonwealth, called resilientMA, providing extensive information and resources for all communities and regions. The EOEEA has also initiated a Municipal Vulnerability Preparedness program for all communities in the Commonwealth, and the PVPC is assisting many Pioneer Valley region communities to become certified. 4 U.S. Small Business Administration. Disaster Recovery Plan. July 31, 2010. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 121 Massachusetts Office of Business Development (MOBD) Under the Office of Housing and Economic Development, the regional office of the MOBD represents the state when needed. Regional staff are available to assist at Disaster Recovery Centers and conducting outreach to affected businesses. Massachusetts Department of Housing and Community Development (DHCD) CDBG-DR funds come from the U.S. Housing and Urban Development through the state DHCD, generally well after the disaster event is over. These funds can be used for business recovery and economic development. In order to obtain these funds, each community must apply to the state with project proposals; therefore the intent to use funds for businesses must come directly from the municipality. Massachusetts Emergency Management Agency (MEMA) The Massachusetts Emergency Management Agency (MEMA) is the state agency responsible for coordinating federal, state, local, voluntary and private resources during emergencies and disasters. Among other responsibilities, MEMA provides leadership to “assist individuals, families, businesses and communities to mitigate against, prepare for and respond to and recover from emergencies, both natural and manmade.” Massachusetts communities are required to prepare emergency management plans and submit to the Massachusetts Emergency Management Agency (MEMA). The Electronic Comprehensive Emergency Management Plans, or e-CEMPs, are web-based programs that allow Emergency Management Directors in each community to develop preparedness plans. Communities are also required to prepare Pre-Disaster Hazard Mitigation Plans and submit to MEMA and FEMA in order to be eligible for hazard mitigation funding. Emergency Management Directors in each community communicate directly with MEMA during a crisis. Their information is collected and displayed in MEMA’s Emergency Operations Centers (EOCs). For western MA events, the EOC is in Agawam. Associated Industries of Massachusetts (AIM) AIM is a statewide employer association with regional offices. After disaster events such as the tornado and Tropical Storm Irene, AIM helps employers navigate human resources concerns such as how to notify employees, pay requirements under disaster conditions, and special provisions for various scenarios. AIM also posts blogs on their website and social media sites with updates and information when there is no electrical power. Regional and Local Entities The Western Region Homeland Security Advisory Council (WRHSAC) WRHSAC is a volunteer Council charged by the Massachusetts Executive Office of Public Safety and Security to administer and coordinate the State Homeland Security Grant for the four counties of Western Massachusetts: Berkshire, Franklin, Hampshire and Hampden. Funded activities are regional in scope and build and enhance capabilities that enable the region to prevent, protect against, mitigate, 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 122 respond to, and recover from the threats and hazards that pose the greatest risks. The project is coordinated by the Franklin Regional Council of Governments (FRCOG) as fiscal agent. The members represent the first responder disciplines as identified by the Department of Homeland Security but does not include economic development agencies or business leaders. WHRSAC operates its own website plus www.westernmassready.org (READY stands for Rapid Emergency Action Depends on You), a website devoted to helping residents and businesses prepare for and deal with an emergency or disaster. The BusinessREADY section of the website provides basic guidelines for businesses. In 2008, WRHSAC prepared and distributed a brochure called “Getting Back to Business: Establishing a Disaster Preparedness Continuity of Operations Plan.” The brochure includes basic guidelines for preparedness and recovery as well as links to additional resources. It is available online at http://westernmassready.org/business-ready/make-a-plan/. The Franklin Regional Council of Governments (FRCOG) The FRCOG serves as fiduciary agent to the Western Regional Homeland Security Advisory Council (WRHSAC) and also conducts extensive Emergency Preparedness planning for the region under contract with WRHSAC. FRCOG has also assisted with the promotion of business continuity planning, development of brochures, and outreach to the business community. After Tropical Storm Irene, FRCOG also helped coordinate Business Continuity Workshops. Community Development Corporations (CDCs) Several CDCs serve the Pioneer Valley region: the Franklin County CDC, Valley CDC, and Hilltown CDC. A non-profit organization formed to assist homeowners after the 2011 tornado in Springfield has been certified as a new community development corporation, Revitalize CDC. In addition to homeowner assistance, they have added a small business technical assistance program targeting the underserved Latino community in the city. The CDCs provide technical assistance and have a small staff available to assist after a disaster, particularly in coordinating with chambers and other service providers. Massachusetts Small Business Development Center (MSBDC) The western office of the MSBDC is located in Springfield. The MSBDC provides business advisory services on an appointment basis and is generally not involved in disaster recovery efforts, given that one of its sponsors, the SBA, plays that role. Funding for this office comes through the state and the University of Massachusetts and is matched 2:1 by the SBA. SCORE SCORE is a national organization of volunteer business advisors, affiliated with the SBA. Its western Massachusetts chapter has six locations. In several cases in the Pioneer Valley, SCORE advisors were invited to help work with businesses after a disaster. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 123 Chambers of Commerce Chambers of Commerce have no official or prescribed role in disaster preparedness or recovery. However, in recent years, many chambers have been forced by circumstances to address catastrophic events in their regions. Some chambers in particularly disaster-prone areas have developed special programming and resources to help their members and other businesses to be more disaster resilient. Chamber directors can reach their members easily; however, many businesses do not belong to the chamber and will be left out of communication and assistance efforts. Chambers can also disseminate information from affected business to potential clients and customers. For example, when the Deerfield Inn was flooded in Tropical Storm Irene, the Greater Springfield Convention and Visitors Bureau posted information that they were temporarily closed. In some cases, businesses will help each other if they already know one another; according to chamber directors, the hospitality industry is fairly well- connected and will work out various arrangements among themselves. Municipal Officials Municipalities are responsible for coordinating activities within their jurisdiction and are required by the state to prepare Comprehensive Emergency Management Plans (CEMPs). The guidelines for plan preparation include provisions for assistance to businesses, but only as a relatively limited section of the plans. Each community has a local Emergency Management Director (EMD) and Local Emergency Planning Committee (LEPC) or is a member of a Regional Emergency Planning Committees (REPC). REPCs and LEPCs are established in each community under federal Environmental Protection Agency (EPA) regulations meant to control hazardous materials. They must complete emergency plans that are consistent with other emergency preparedness efforts of the community. Each community is different and has different needs after a disaster, particularly in this region of the state, where municipal populations range from 500 to over 150,000. Smaller towns may have a fire or police chief who is also the town’s emergency management director, and do not have planning, community development, or economic development staff to assist businesses after a disaster. The region’s cities, on the other hand, have emergency preparedness officials as well as additional staff that can be deployed to help conduct outreach after a disaster. Best Practices The following are brief summaries of some of the best practices that have been utilized in this region and others. Additional recommendations are provided in the Final Recommendations section. Communication with Business Community The best and most efficient means of communicating with most businesses is through the local business association and/or chamber of commerce. In Buckland, MA, the Emergency Management Plan now specifies that municipal officials will communicate directly with the Shelburne Falls Area Business Association in times of disaster or crisis. For non-member businesses, the most efficient means of communicating is via municipal officials, including the Chief Elected Official and the Emergency 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 124 Management Director. This is much easier if a database of businesses has been compiled prior to a disaster event occurring. Ideally, every municipality would have an easily accessible database of all businesses within their borders. “Robocall” systems are also helpful for this, but businesses need to be signed up in the community the business is in. On Cape Cod, the regional chamber of commerce serves the entire county; in other areas, if the largest regional chambers are able to extend and expand their reach temporarily and work with other chambers, this collaboration and communication can be a lifeline for those in less populated areas. Door to door outreach conducted in Springfield after the tornado and in Vermont after the flooding was extremely helpful to businesses in terms of knowing possible avenues for support. In particular, the ability of staff to speak Spanish was critical for some Latino business owners. In Joplin, Missouri, which is significantly smaller than Springfield but larger than most Pioneer Valley communities, a Joint Information Committee included not only municipal officials and the business community but also schools, hospitals, non-profits and housing agencies. Even small communities could convene as many of these groups as possible. Social media was also used to excellent effect in Monson following the tornado, as well as in Joplin and Cape Cod. Emergency Loans or Grants Because SBA loans take time to process and are not available to all, and building funds from a hospitality sales tax takes even longer, even modest emergency loan funds created by the community can be critical to helping businesses in the short run. In the 2011 disasters, the Amherst Area Chamber and CISA were instrumental in raising and distributing funds to businesses who desperately needed them. Ideally, such funds would be available from state agencies on an as-needed basis. Designated Technical Assistance If communities are able to obtain funding from EDA or other sources for a staff person to conduct outreach and technical assistance specifically to disaster victims (as did Dover and Wilmington VT), that can be a significant help in the medium to long-term, as businesses rebuild, relocate and re-evaluate their market. Other Other strategies include:  When businesses register with the town clerk, give them emergency contact and resource information.  Use Reverse 911 or Code Red system –if your business is in the town but you live elsewhere, you need to be sure to sign up. 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 125  Chambers must contact BOS and EMDs to insist on inclusion.  Chambers should also contact EMDs during the event to be sure that they are receiving accurate and up-to-date information.  Chambers should use social media, including Facebook and Twitter, to post messages about the storm or event and updates that affect businesses.  Emergency preparedness information can be included on chamber and municipal websites.  Educate EMDs in each community.  Use robocalls to contact businesses.  Think through statewide calls more; what are the expectations? Who should be on the calls?  Clarify roles of FEMA and SBA after disaster. Recommendations Many of the reports and analyses done addressing the needs of businesses in disaster response and recovery have been very comprehensive and resulted in numerous recommendations for change. In some cases, there are dozens of individual steps to be taken. This may be a further obstacle to improvement, as change is too overwhelming. Therefore, here only three recommendations are made for each level of government or business-related entity. The primary one in each case is to build relationships, which are ultimately what all parties will rely upon in disaster scenarios. TOP THREE recommendations for businesses: 1) Build relationships in advance. Strengthen your networks and establish relationships with someone who can help if disaster strikes. 2) Make a simple plan for the worst case scenario – even a “back-of-the-envelope” plan. Think it through. 3) Seek technical assistance after a disaster even if it feels like there isn’t time. You’ll need to re- evaluate your business plan, including market area, supply chain and customer base. TOP THREE recommendations for chambers, business service providers and local economic development staff: 1) Be aware of potential disaster recovery needs and know that you may be called upon to help. Know that businesses will need a variety of technical assistance and support after an adverse event. 2) Build relationships! Discuss and address business continuity planning with your members and clients. Understand that they will most likely not take extensive business continuity planning on 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 126 their own and ask them pertinent questions to begin the process of thinking through key preparedness actions. For chambers and providers, build and maintain relationships with local officials. 3) Work with other providers on a regular basis and particularly in times of crisis, and consider the possibility of starting a community-supported emergency loan fund after a disaster event. TOP THREE recommendations for municipalities 1) Take opportunities to have conversations with municipal emergency response staff, local and regional chambers of commerce, and state-level staff at the Executive Office of Housing and Economic Development (EOHED), including the Massachusetts Office of Business Development (MOBD) about disaster recovery issues. 2) Establish a database of businesses in your community, perhaps as part of the process of granting permits and licenses. 3) Provide pertinent local disaster preparedness information (contacts, procedures, etc.) to businesses, possibly at your city or town hall when they apply for business permits. TOP THREE recommendations for state and federal government agencies: 1) Evaluate and streamline FEMA and SBA process at Disaster Recovery Centers established onsite after a disaster has occurred. 2) Re-evaluate “unmet” need criteria and eligibility requirements for CDBG-DR business recovery funding. Strive to make the funding available more quickly to greater numbers of affected businesses. 3) Incorporate this subject into economic development seminars, conferences, etc., as part of business resilience so that government officials, economic development practitioners, and business providers can be more prepared. Implementation Projects 1) Chambers of Commerce: Education and Outreach The Fall 2011 Chamber Executive article, “After the Headlines: Chamber Execs Lead Disaster Recovery Work,” is extremely useful and relevant and has been an excellent resource for chamber leaders. It provides numerous examples of chambers of commerce dealing with natural disasters in their communities, such as in Joplin, Missouri, and summarizes specific actions and approaches that can be taken. 2) Municipal Emergency Planning and Preparedness The PVPC has strengthened the emphasis on incorporating businesses and economic development issues into Hazard Mitigation plans and E-CEMPs prepared for the region’s communities, because of the 2019 Pioneer Valley Comprehensive Economic Development Strategy (CEDS) Page 127 fundamental disconnect on the local level between the business community and emergency planners/public safety personnel. During the Hazard Mitigation planning efforts, local governments and emergency planners are encouraged by PVPC staff to begin to think about including local business representatives more directly in their process and to ultimately develop more of a working relationship with the business community. 3) Plan for Progress Coordinating Council The Coordinating Council oversees the Five-Year CEDS and its annual updates. Economic resilience is incorporated throughout the CEDS and specifically in certain goals and strategies. Coordinating Council meetings address implementation projects in the region and have included resilience issues such as extending broadband access, development of clean energy and clean energy storage capacity, workforce training for local industries including health care and IT, and local emergency and disaster preparedness. 4) Collaboration: Community Organizations Active in Disasters (COAD) A Pioneer Valley COAD organization was developed after the 2011 disasters. A COAD is an affiliation of organizations that assist residents after a disaster, such as the Red Cross, Salvation Army, Food Bank, etc. Chambers of commerce could help coordinate those needs and also be kept better informed in the process. In our region, many residents have small home businesses and after a major storm or disaster, their business needs are integrally linked with their needs as residents. 5) NADO Lessons from the Storm Case Studies on Economic Recovery and Resilience NADO included the Pioneer Valley Region in a series of case studies on this topic. Entitled “Southwestern Massachusetts: Strengthening Businesses and Communities through Disaster Recovery,” the report documents efforts made in the region following the 2011 tornado, tropical storm and severe snowstorm. PVPC staff assisted with information and writing for the report, which can be found at http://www.nado.org/southwestern-massachusetts-strengthening-businesses-and-communities- through-disaster-recovery-2/