Counties Play an Important Role in Economic Development
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Transcript of Counties Play an Important Role in Economic Development
County Commissioners Association of Ohio
Lunch and Learn:
County Economic Development Essentials
February 10, 2015
February 10, 2015 Presentation by Mark Barbash 1
Mark BarbashExecutive Vice President
Finance Fund
February 10, 2015 Presentation by Mark Barbash 2
• Statewide nonprofit financial intermediary • Est. in 1987 to connect communities with capital • To date, $296.4 million invested in housing, economic
development, & community facilities leveraging over $1.2 billion. • Economic Development • Small Business Lending• Health care facilities and equipment• Commercial Real Estate Development• Healthy Foods Retail
FINANCE FUND: WHO WE ARE
February 10, 2015 Presentation by Mark Barbash 3
What is Economic Development?
Economic and Demographic Trends
Major Long Term Economic Transition
Practice of Economic Development
Economic Development in Ohio
Counties in Economic Development
So, what do you do now?
February 10, 2015 Presentation by Mark Barbash 4
What is Economic Development?
• Improve the economic well-being…
• …Improve the quality of life
• …for a community or a region
• …by helping to create and/or retain jobs
• … growing incomes
• and the local tax base…
• …to provided needed services.
February 10, 2015 Presentation by Mark Barbash 5
What is Economic Development?
Community Development
Economic Development
Business Development
Housing & NeighborhoodsQuality of Life
Human ServicesEducation
InfrastructureWorkforceTech Based ED
Capital AccessMarketing
Attraction & RetentionEntrepreneurship
Infrastructure
Main Street
IncubatorsSmall Business
EntrepreneurshipFebruary 10, 2015
Difference between economic & community development?
February 10, 2015 Presentation by Mark Barbash 7
Economic and Demographic Trends Impacting Economic
Development
February 10, 2015 Presentation by Mark Barbash 8
The economy is recovering … employment is up….
February 10, 2015 Presentation by Mark Barbash 9
Unemployment is down…
February 10, 2015 Presentation by Mark Barbash 10
…but the recovery is slower than any other recession
76 months to recover
46 months to recover
February 10, 2015 Presentation by Mark Barbash 11
… and while productivity is up, wages & family income are not
February 10, 2015 Presentation by Mark Barbash 12
The country is going through a major long term
economic transition
February 10, 2015 Presentation by Mark Barbash 13
The younger talent pool is 40% less than retirement age pool
February 10, 2015 Presentation by Mark Barbash 14
The internet has accelerated business innovation & competition
February 10, 2015 Presentation by Mark Barbash 15
… manufacturing technology is increasing productivity
February 10, 2015 Presentation by Mark Barbash 16
… and education remains the best path to higher earnings
February 10, 2015 Presentation by Mark Barbash 17
The Practice of Economic Development is Changing in
Response
February 10, 2015
Think, Plan & Act Regionally
February 10, 2015 Presentation by Mark Barbash 19
Think, Plan & Act Regionally
55% of County Workers Live Inside the County
45% of County Workers Live Outside the County
38% of County
residents work
outside the
county
Montgomery County Workforce Inflow / Outflow
• Companies are increasingly looking for a good quality of life for their employees and executives: • Arts, Culture & Recreation• Education• Diversity of Housing and Transportation Opportunities• looking for What makes your community special?
• What makes your community special?• Identify and leverage your strongest assets such as colleges,
universities, arts, natural resources, health care• Do asset mapping on a local AND regional basis• How is your community connected to your neighbors?
Place Matters: Enhance What Makes Your Community Livable
• Total Projects: 93 (47 Expansion, 46 New)– Projects connected with existing businesses: 78– Average Jobs: 181– High Jobs Number: 900 – Average Square Feet: 157,000– Average New Jobs: 256– Average New Square Feet: 203,000
• Big Deals: – 1 Project; 1,500 jobs, Mfg. 1M Sq. Ft.
Source: Site Selection Magazine
Death of the Big Deal
Strategy #3: Double Down on
Retention & Expansion
• Keeping existing businesses happy should be priority number 1!
• Why do businesses leave a home-town location: a lack of expansion space.
• New businesses look for customers, suppliers, strategic partners, and a quality workforce.
• The best Attraction Strategy is a strong Retention & Expansion Strategy.
Double Down on Retention & Expansion
• Communities that are working together in their regions are more successful in business attraction, retention and expansion
• …and the site selectors are paying attention.
• Do you understand what drives your economy?
• Do you have a partnership group that is broadbased, has assigned responsibilities, and is networked with the region and the state?
February 10, 2015
Collaboration is the New Competition
February 10, 2015 Presentation by Mark Barbash 24
What Matters Most to Site Selectors:1. State and Local Tax Structure
2. Transportation & Utility Infrastructure
3. Land/Building Prices & Supply
4. Ease of Permitting and Regulatory Process
5. Workforce Skills
6. Regional Economic Development Strategy
7. Legal Climate
8. Availability of Incentives
9. State Economic Development Strategy
Collaboration is the New Competition
• Main Street Revitalization
• Small Business Technical Assistance
• Tech Based Entrepreneurship
• Economic Gardening
• Small Business Supply Chain
• 1099 Economy
• Incubation vs. Acceleration
Emphasize the Entrepreneurial Strategy that Fits Your Community
• 90% of the research by a site selection company is done BEFORE you are contacted
• Have a user-friendly website
• Link your site with your regional economic development partner
• Easily accessible public services
• Keep your inventory of sites up to date
Technology has Changed the Practice of Economic Development
• Retention and Expansion
• Attraction
• Workforce Development
• Main Street Revitalization
• Leverage a major regional asset
• Tourism
• Arts and Culture
• Targeted Industry or Industry Cluster
Develop a Mix of Strategies that Responds to Your Community
• Use incentives strategically
• Create local incentives that make sense for your community
• Provide for transparency and accountability
• The fewer the programs, the easier the deal
• You DON’T need to give away the kitchen sink: Be strategic with your investment.
Fine Tune Your Financing and Incentive Toolkit
Property Taxes based upon Valuation
Sales Taxes based upon Sales Revenue
Income Taxes based upon Wages
Property Taxes based upon Valuation
Fees and Transfer Payments from other govt sources
It’s all about the Fiscal Impact of Your Investments
Cost
• Short term Investment in infrastructure, grants
• Roadway construction AND maintenance
• Cost of tax incentives (forgone revenue)
• Political
• Environmental impact
Benefit
• Property, income or sales tax revenue
• Fee revenue
• Payments in Lieu
• New Job Opportunities
• Revitalized neighborhoods
February 10, 2015 County Economic Development Essentials Mark Barbash30
Understand the ROI of Your Incentives and Investments
Take Informed Risk!
The Structure of Economic Development in Ohio
• Economic Development• Business Attraction• Industry Growth• International Business • Regional Network
Partners
• Community Development• Housing & Partnerships• Historic Prez Tax Credits• Ohio Third Frontier• Energy Office• Small & Minority
Business
February 10, 2015
The Structure of Economic Development in Ohio
February 10, 2015 Presentation by Mark Barbash 33
JobsOhio Network Partners
February 10, 2015
The Structure of Economic Development in Northwest Ohio
February 10, 2015
Economic Development Incentives: Rules of the Game
• Start early• Explain the strings up front. • There are NO programs that provide 100% support• Work with your economic development
professional• Work with your JobsOhio Network Partner• Not all projects can work with programs• Be prepared to take informed risk. • Be willing to walk away.• If it sounds too good to be true, it probably is!
February 10, 2015
Economic Development Incentives: What else is an incentive?
• Expedited permit review and processing• Local one-stop-shop • Have all key people at the table• Infrastructure: Roadways, traffic signals, rail spurs,
connectivity• Workforce partnerships with colleges/universities• A “job ready” site• Adequate sewer, water, utility service• A good place to live, work and raise a family.
February 10, 2015 Presentation by Mark Barbash 37
The Role and Challenges of Counties in Economic
Development
• Counties are Sponsors of Local Economic Development Initiatives
• Workforce Challenges are at the Top of the County Economic Development Agenda
• Collaboration is the Key to County Economic Development Initiatives
February 10, 2015 Presentation by Mark Barbash 38
NACO, July 2014
The Role and Challenges of Counties in Economic Development
Working Collaboratively
1. Developing the Regional Perspective
2. How to distinguish County priorities
3. How to link County priorities with City Priorities
4. Rural – Urban -- Suburban
5. Larger Urban Community in the County
6. No Urban Community in the County
7. Community College or University in County
February 10, 2015 Presentation by Mark Barbash 39
The Challenges of Counties in Economic Development
Fiscal Challenges
1. Conflicting Priorities based on Fiscal Structure
2. Limited Financial Resources
3. Entitlement vs. Non-Entitlement
4. Others Jurisdictions Spending Your Resources
5. Limited authority
February 10, 2015 Presentation by Mark Barbash 40
The Challenges of Counties in Economic Development
Ohio County Economic Development Tools
1. Infrastructure Investment
2. Highway maintenance
3. Workforce Development (WIB)
4. Land Banks
5. County level organization
6. Planning and Zoning
February 10, 2015 Presentation by Mark Barbash 41
The Challenges of Counties in Economic Development
Presentation by Mark Barbash 42February 10, 2015
So where do you go from here?
• Is there a county wide economic development strategy with performance measurement?
• Have you established priorities, goals, tasks, with assigned leads ?
• Is there a Collaborative Partnership?• How inclusive is the partnership?• Is there a working group of EDPros from the
region?• Is there a toolbox that is appropriate to your
community and priorities ?
February 10, 2015 Presentation by Mark Barbash 43
Next Steps: Some Benchmarks and Questions
So What’s the Dessert?
February 10, 2015 Presentation by Mark Barbash 44
Mark Barbash, EVP, Strategic [email protected]
(614) 774-7599
Finance Fundwww.financefund.org
(800) 959-2333 - (614) 221-1114