Economic Development Report

Talbot County, Maryland

Data Base Resources used for this report: 2005 US Census Tract Updates, Maryland Departments of Labor, Economic Development, and Assessment and Taxation, Talbot County Departments of Planning and Zoning, GIS, and Finance. Compiled September 2007 by the Talbot County Department of Economic Development

Talbot County Economic Development www.talbotcountymd.gov Director, Paige R. Bethke 410-770-8058

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Talbot County, Maryland

LocationPopulationDemographics

WorkforceHousingTourism

AgricultureCommercialIndustrial

Business RetentionBusiness Attraction

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Talbot County: Hub of the Environmental Peninsula

Talbot County fronts the Chesapeake Bay and is located midway down the Delmarva Peninsula, a 6,057 square mile area just east of metropolitan Washington DC, referred to locally as Maryland’s Eastern Shore or, as we refer to it: The Environmental Peninsula. Talbot County is 279 square miles which includes four major river systems and over 600 miles of waterfront shoreline. Its land and adjacent waters support forests, agriculture and seafood processing activities which have historically formed the County's economic base.

Development of Talbot County began in the mid 1600s with the arrival of merchants and explorers from England who established the Port of Oxford as the first Capital in America. Talbot County remains predominantly rural in character, with approximately 60% of the total County population clustered around the Town of Easton. The Town of Easton was established to serve as the County seat in the mid 1860’s. The 2006 estimated population of Easton is 14,666 which now serves as a regional hub for financial, commercial and medical services to the Mid-Shore area.

Talbot County’s population of 36,062 has steadily increased at 1.4% per year for the last 25 years. The County economy has remained healthy, attributed to revenues generated by real estate transfer and recordation taxes. The economy reflects a diversified industrial base of agriculture, manufacturing production, commercial trade, professional services and medical/healthcare supported by seven industrial parks and an employment base of 19,295 workers. The Shore Health System merged with the University of Maryland Medical Center in 2005 and is the largest employer in the County. The Easton Airport, a General Aviation Airport located at the north entrance to town, is the second busiest airport in Maryland.

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Talbot County is centrally located on the Delmarva Peninsula, a 6,057 square mile body of land surrounded on three sides by the Chesapeake Bay, the Delaware Bay, and the Atlantic Ocean. We refer to it as the Environmental Peninsula.

Talbot County is bounded by the Choptank River and Dorchester County to the south, Caroline County to the east, Queen Anne’s County and the Wye River to the north, and the Chesapeake Bay to the west.

Within close proximity to the Baltimore/Washington DC Metropolitan market, Talbot County is accessible to major Mid Atlantic cities and international airports and ports.

U.S. Route 50 serves as a major North/South transportation corridor for the Delmarva Peninsula and bisects Talbot County N/S. US Route 301 is a major truck transport corridor linking Wilmington, DE. with points north and Washington D.C. with points south.

Highway Distances from Easton:Baltimore, MD 59 milesWashington DC 73 milesWilmington, DE 65 milesNewport News 207 milesNew York, NY 195 miles

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TALBOT COUNTY ECONOMIC DEVELOPMENTExecutive Overview

2007 2006 2000County Population 37,000 36,062 33,812Civilian Labor Base 20,046 19,128 16,880Total Employment 19,749 19,295Net Job Gains 450 860Unemployment Rate 3.8% 3.6%

County Based Employers 1,735 1,700

Talbot Maryland United States Earned Income Less than $25,000 26.6% 20.3 % 27.6%$25,000 to $49,900 33.5% 31.3% 34.2%$50,000 to $74,999 19.7 % 23.3 % 20.3%$75,000 and over 20.2% 25.1% 17.9%

Talbot MD USAverage Household Income $62,879 $61,807 $52,506Median Household Income $42,126 $48,803 $40,529Per Capita $26,880 $23,340 $19,779

Education RateGraduate rate for high school seniors 84.4% Enter the workforce upon graduation 17.2% Go on to Higher Education 77.4%4 year Bachelors degree or higher education 27.8% of total population

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Regional Population Growth

Regional Population/Forecast

Maryland 2000 Population 2004 Population 2009 Forecast% Change

(04-09)

Cecil County 85,951 92,831 100,745 8.53%

Kent County 19,197 19,756 20,405 3.29%

Queen Anne's County 40,563 44,340 48,159 8.61%

Talbot County 33,812 34,404 35,651 3.62%

Caroline County 29,772 30,531 31,669 3.73%

Dorchester County 30,674 30,222 30,053 -0.56%

Wicomico County 84,644 87,108 91,310 4.82%

Worcester County 46,543 49,752 55,177 10.90%

Somerset County 24,747 25,962 26,955 3.82%

Delaware      

Kent County 126,697 134,152 141,957 5.82%

Sussex County 156,638 168,699 188,442 11.70%

Virginia      

Accomack County 38,305 39,518 41,773 5.71%

Northampton County 13,093 12,830 12,704 -0.98%

TOTAL 730,636 770,105 825,000 7.13%

Data sourced from EASI, Easy Analytic Software Inc and Appraisal. Source, Easton, MD

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Distribution of Age and Race

2005 Census Estimates

30,043 White (or 84% of total population)

5,095 Black residents in Talbot County.

Talbot County has the oldest average age in Maryland at 44.2 years.

The state average age is 37.4 (2006 data).

There are 52.3 % females in Talbot County

Age Distribution for Talbot County

0 2,000 4,000 6,000

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Number of People

85 years and over

75 to 84 years

65 to 74 years

60 to 64 years

55 to 59 years

45 to 54 years

35 to 44 years

25 to 34 years

20 to 24 years

15 to 19 years

10 to 14 years

5 to 9 years

Under 5 years

State/Region/Jurisdiction

Total White AloneBlack or African American Alone

American Indian and Alaska

Native AloneAsian Alone

Native Hawaiian and Other Pacific

Islander Alone

Two or More Races

Maryland 5,600,388 3,586,856 1,640,316 17,857 267,169 3,471 84,719

Baltimore Region 2,610,063 1,719,809 752,313 7,710 93,233 1,500 35,498Anne Arundel 510,878 411,278 75,009 1,633 14,380 446 8,132Suburban Washington Region 1,994,407 1,057,440 728,312 6,958 161,415 1,540 38,742Southern Maryland Region 323,265 236,914 73,079 1,560 6,034 181 5,497Western Maryland Region 245,443 223,903 17,213 379 2,076 94 1,778Allegany 73,639 68,293 4,430 92 423 11 390Upper Eastern Shore Region 230,812 205,170 21,147 711 1,917 133 1,734Caroline 31,822 26,736 4,470 193 155 10 258Cecil 97,796 90,743 4,853 304 938 17 941Kent 19,899 16,462 3,138 49 172 6 72Queen Anne's 45,612 41,186 3,591 103 398 8 326Talbot 35,683 30,043 5,095 62 254 92 137

Lower Eastern Shore Region 196,398 143,620 48,252 539 2,494 23 1,470Dorchester 31,401 22,263 8,679 75 264 0 120Somerset 25,845 14,625 10,770 83 217 1 149Wicomico 90,402 66,083 21,515 282 1,587 19 916Worcester 48,750 40,649 7,288 99 426 3 285

Prepared by the Maryland Department of Planning, Planning Data Services, from the Population Division, U.S. Census Bureau, August 2006.

Total Population by Race for Maryland's Jurisdictions, July 1, 2005

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Talbot County Per Capita Income

Representation of the distribution of population be average wealth in Talbot County.

The least populated areas of Talbot County are also the poorest: extreme east area and the western area contain one fifth of the total population with average income below $20,000. The majority of the land is used for agriculture.

The central area of the County contains the majority of the population with 22,155 people who have an average income from $26,450 to $32,500.

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Wages By Employment Sector for Talbot County (2006)

Talbot County Wages

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$200

$400

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$1,000

$1,200

Industry Sectors

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Employment By Industry Sector

Employment By Sector

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Industry Sector

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06 Employees

1,735 Private Non-Farm Reporting Units (Businesses) in Talbot County. The majority of the businesses employ 49 workers or less. The 20 largest employers include health care services, manufacturing, professional services and national retail/consumer goods operations.

Existing Manufacturing Base includes: Printed Materials (Cadmus Journal Services); Pharmaceuticals (Konsyl); Pharmaceutical Packaging (Celeste Industries); Environmental Sciences (Wildlife International, Environmental Concerns); Instruments (Jasco); Technologies (L3/BAI, SpecTIR, Axis GeoSpatial,); Food Processing (Allen Family Foods and Seawatch.); Metal Fabricators (Whalen, Salisbury Pewter and SFA); Wood Products (Johnson Logging)

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Access To Regional Knowledge-Based Resources

Cooperative Oxford NOAA Lab – National Center for Coastal Oceanic Science, Center for Coastal Environmental Health and Bimolecular Research – Collocated with the Maryland Department of Natural Resources and the US Coast Guard Station

Chesapeake College and Higher Education Center AA Degree ProgramSalisbury University, Salisbury 3,500 students BA/BS MS Degree Programs University of Maryland Eastern Shore 1,700 students BA/BS Degree ProgramsWashington College 800 students BA Degree Programs

UMMS/SHS Medical Facilities: serves the Upper Shore with the Memorial Hospital at Easton and major medical facilities. Employs 1,700 workers with $161 Million in Net Operating Revenues (FY 06).

Horn Point Center for Environment Studies: University of Maryland Research Facility with newly expanded Lecture and Conference Facility, operates an internationally recognized Oyster Incubator and Seed Program for Chesapeake Bay

CBRTCE Chesapeake Bay Regional Technical Center for Excellence: Promotes technology based business development for the Eastern Shore Region. Federal and State Laboratory technology transfer resources and Higher Education Institution partnerships to promote technology development.

Wye Institute and Research and Education Center: University of Maryland Agriculture ResearchCenter; U MD Black Angus Cattle Genetic Research Center; Eastern Shore Land Conservancy Program

Wallops/NASA Space Flight Center

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Town and County Infrastructure

Easton Utilities CommissionThe Town of Easton, Easton Utilities Commission operates as an enterprise and provides electricity, water, wastewater treatment, natural gas, cable television, internet and advertising services for the Town of Easton. Most recently, the Town invested $36 Million to provide for the expansion to the existing wastewater sewer treatment facility expected to support development requirements in Easton through 2030.

Delmarva Power ( PEPCO) and Choptank Electric Cooperative provide electric service to Talbot County

Municipal Water/Wastewater Sewage Systems The Towns of, Oxford, St. Michaels, Trappe and Tilghman have County owned and operated wastewater treatment systems. The County continues to invest in new technologies and programs to reduce nitrogen levels of septic systems and to encourage current homeowners to maintain septic systems in good operating order.

Natural GasTalbot County is served by Eastern Shore Natural Gas Company/Chesapeake Utilities. A major expansion to the natural gas service is in progress to provide expanded capacity.

The Mid-Shore Regional Council has teamed with the Lower Shore Tri County Council and the Upper Shore Regional Council and the Southern Maryland Cooperative to form a Broadband Cooperative which will connect the Patuxent River Naval Air Command (located in Lexington Park, Maryland) and the NASA Wallops Space Flight Center (located in Chincoteague, Virginia) and provide the backhaul for high speed fiber service to much of the Eastern Shore, including rural areas of Talbot County.

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Single Family Improved Residential Parcels

Talbot County reports 30,273 acres of residential land use out of a total 171,000 total acres (November 2006). Maryland Department of Planning demonstrates that over a 13 year period, Talbot County contained growth within PFA’s

Prepared by the Maryland Department of Planning, from MDProperty View

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Mid-Shore Homebuyers

Talbot County has enforced restrictions on residential development in the rural and environmentally sensitive areas of the County

Most of the housing demand to the Priority Funding Areas (PFA’s) or Towns.

This has resulted in an inflation of land prices throughout the County. Given the amount of waterfront land

The attraction to waterfront properties and small villages on the west side of Route 50 cater to the affluent while the east side of Route 50 offers affordable housing product with all the amenities that the Town of Easton and other small towns offer. Relatively low tax rates and public investments in infrastructure supports a desirable place to live.

Talbot County Housing Status

2006 Talbot County Housing 17,100 SFR Units

2000 Occupied Households 14,307 SFR Units Vacant 2,193 SFR Units Owner Occupied 10,244 SFR Units Renter Occupied 4,063 SFR UnitSeasonal 1,104 SFR Units Migrant 7 SFR Units

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Easton Downtown Development

Historic Easton has contracted AKRF and Street Works to provide a Downtown Revitalization Plan. Much of that infill is expected to be occupied with young people entering the job markets, two income relocating families and early retirees. Several mixed use projects are in the planning stages for Downtown Easton. The Stewart Building will offer mixed use office retail and Harrison’s Flower Shop will become retail and market.

Historic Tidewater Inn, located in downtown Easton recently experienced a $10 Million investment in restoration and renovation

The Avalon Foundation promotes live venues at the historic Avalon Theater. The St. Michael's Maritime Museum hosts traditional maritime related events.

Events bring thousands of visitors to the area every year.Waterfowl Festival NovemberAcademy of Arts Plein Air July

Easton Population Growth2000 Census 11,7081/1/06 Easton Population 14,666 1/1/07 Easton Population 14,863

Growth Rate 1.34% per year

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Talbot County Land Use.

Talbot County records a total 171,000 acres for use in the 279 square miles of its jurisdiction.

Agriculture land use

102,358 Acres

Operating Farms 280

Average Farm 367 acres

Total Ag Parcels 2,150

Talbot County Agriculture Production Contributed $55,611,000 to the County economy (2005)

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Talbot County Agriculture Vision

Talbot County Agriculture Visioning Plan:

A draft plan has been compiled by the Talbot County community that addresses the sustainable requirements of Talbot County’s agriculture base including large grain farms, poultry and mid size farm operations, small niche farms and resources based agriculture.

Sustaining a working landscape of grain and specialty crop farming that continues to define our quality of life and serves as an asset …

Expand marketing efforts with regional brands that identify our agriculture products with quality, freshness, health and food safety

Diversify grain agriculture with alternative crops for bio-fuel and energy production

Provide community support, economic assistance

Enhance environmental quality by expanding cost share programs

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Industrial and Commercial Land Use

Total Acreage in Commercial Use 3,185 acres

Total Commercial Parcels 1,332 parcels

Total Acreage in Industrial Use 485 acres

Total Industrial Parcels 68 parcels

6 Industrial Parks in Town of Easton

1 Commercial /Industrial Park in Talbot County

Easton Technology Center

Phase I complete Phase II/III 65 acres available

1.46 to 2.65 acre sites @ $141,500 per acre

Clifton Industrial Park is the most recent annexation into the Town of Easton.

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Commercial Development

Project Total sq ft CompletionEaston CommonsPanera Bread 20,000 sq. ft. June 08Country Inn and Suites 60,000 sq. ft. October 08

Gillis Gilkerson ProjectsMU Office/Res Dover St 7,600 sq. ft. October 07Medical Office Space 22,000 sq. Ft. June 08

Talbot Commerce ParkBuilding Supply 16,000 sq. ft. February 08Soil Conservation Building 20,000 sq ft June 08

Orthopedic Center 5,000 sq. ft. December 07Expansion SHS/UMMSEmergency Pavilion 20,000 sq. ft. New$30 Million Project 20,000 sq. ft. Reuse January 08

New Lowes 168,000 sq. ft. December 08Belk’s Department 70,000 sq. ft. Reuse December 08

Waterside Village 330,000 sq. ft.Target 130,000 sq. ft. March 082 MU Office/Retail 50,000 sq. ft. March 08Chili’s, Pet SmartChevy Chase Bank,

National Shoe Brands

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Retention of Major Manufacturers and Employers

• Cadmus Journal Services, publisher medical and scientific journals merged with Cenveo (Mar 07) 3rd largest graphics company in N A. Expansion of new web press and retention of 260 workers

Konsyl Pharmaceutical Inc., manufacturer of prescription digestive system products owned by ICC Industries, Inc. has agreement with the 2nd largest drug store chain in China

JASCO North America, NA Headquarters for Japanese parent, JASCO International, Assembly and distribution of spectrometers and analytical equipment

Wildlife International, expands operations to accommodate European requirements for endocrine disruption testing. 15,000 sq. ft of lab space and 30 Biologists/PhD’s Retains base of 97 workers

SFA, Defense Products Division, an ISO 9001: 2000 certified manufacturer of rugged mobile support systems for US Government, Awarded an 8 year, $145 Million Department of Defense Contract with Aberdeen Proving Grounds

Allen Family Foods, 3rd largest producer of poultry products in the nation retains 550 job sat the Cordova facility

• UMMS/SHS, largest employer in Talbot County, has completed 40,000 sq ft Emergency Pavilion for Memorial Hospital at Easton. Considering a $200 Million Regional Medical Facility to be built in the next 10 years.

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Easton Airport

Second busiest airport in the State of Maryland (behind Thurgood Marshal/BWI) with an average of 438 operations per day.

Revenues of $52 Million (FY 2006).

Easton Airport supports 13 businesses with an employment base of 150 employees.

$12 Million in infrastructure improvements and upgrades made available from FAA/MTA and Talbot County. The projects construction of an Air Traffic Control Tower completed October 2007.

Several dignitaries and government officials fly into Easton Airport weekly to spend time at residences in Talbot County. This mandates that the airport, the County and the Town maintain the highest levels of security in keeping with Homeland Security requirements and specifications.

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Conclusions Regarding the Talbot County Economy

Talbot County serves as the Regional Hub for the Mid-Shore, an area five times its population located in a 25 mile radius from downtown Easton.

Talbot County provides regional commercial, financial and medical services to the Mid-Shore area serving a population of approximately 160,000 which is expected to reach 170,000 by 2010.

Through progressive zoning legislation and comprehensive planning, Talbot County has directed development to the Priority Funding Areas and retains the majority of its land use for agriculture, sustaining an environmental balance.

Talbot County’s economy is supported by a diverse industry sector base which provides for near full employment currently 3.8% unemployment and a growth in technology jobs.

Economic drivers include: a major General Aviation Airport,

a Regional Hospital with medical services an industrial base attracting an in migration of workers280 large grain farm operations

Resources and opportunities exist to expand the industrial base of the County with investment in additional infrastructure and the support of workforce development programs.

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Bring your Science Projects to our Back Yard…. Talbot County, Maryland . . .

HUB of the Environmental Peninsula

Environmental Technologies: Toxicology, Sensors, Modeling, Simulation, GIS applications Medical Services: Pharmaceuticals, secured Biotech, Pharmaceutical Packaging, Medical Devices

Information Technologies: Data Analysis, Network Design, Software Applications, Logistics,

Agriculture Production: Plant and Animal based products and technologies

Aviation: General Aviation Services