Managing ED Organizations

1. Managing ED Organizations Form and Structure Legal Guidelines

2. Defiance County – NW corner Halfway between Toledo and Ft. Wayne, IN General Motors casting plant Johns Manville – 2 plants Defiance Metal Products Parker Hannifin Ft. Worth Tower Consolidated Grain & Barge Co. # 23 on Site Selection Top Micropolitan list twelve out of last thirteen years

3. Consolidated Grain & Barge

4. Shift from Public to Public-Private Decline in federal funds for public efforts Globalization of ED activities – market driven, flexibility needed that public forms sometimes couldn’t meet State and local government deficits – scarce resources for ED effort Desire in communities to take hold of the reins by the private sector

5. Trends in ED structure choices • Globalization of markets • Increased use of technology in marketing • More diverse skills needed by ED professionals • Workforce development knowledge • Website savvy, competency in technology trends • Financing expertise • Benchmarking – prove your worth • “If not for our activity this project would not have occurred”

6. Types - Public Independent agencies Part of local government Responsible to Mayor or Board of Commissioners More formal powers Infrastructure improvements Zoning powers TIFs Operate public facilities

7. Types - Public • Local government • Regional Planning Organizations • TMACOG • SEMCOG • State ED Organizations • DSA ? • Access to public funding • Some restrictions on use of money

8. Types - Private No public control or money Usually see these organizations concentrating on marketing activities Entrepreneurial activities – commercialization Free from public scrutiny Flexibility to act quickly

9. Types – Public-Private • Long term shared commitments to pursue common goals • Retention & expansion • Attraction • Improve business climate • Flexible – some advantages from both worlds • Funding from two sources • May be created by a legislative act or created by a contract • Usually a non-profit organization with a board

10. Community Improvement Corporations • O.R.C. 1724 Sections 1 – 11 • Section 02 – Powers (attached) • Section 05 and 06 – Annual report – mandatory, requires an annual state GAAP audit • Section 10A – Prepare a plan • Section 10B – Sale or lease of public property without public auction • Section 10C – Rules of sale – no enrichment for CIC

11. Confidentiality Section 1724.11 When acting as an agent of the political subdivision Financial and proprietary information In connection with a “project” Not public information Also applies to CIC board meetings Have to go into closed session CIC board meetings in general are open to the public

12. Other Structures Simple 501C3 or C6 non-profit organization O.R.C. Section 307.07 – Public office set up by county commissioners Chambers of Commerce Main Street programs Private ED Organizations Port Authorities

13. Funding your ED Organization Public / Private mix Admin fees from applications – RLF , loans and grants Review fees – EZ agreements, CRA review fee Sales of services

14. Politics • Always caught in the middle • School boards • Commissioners vs. Municipality • NIMBYs vs growth advocates • Create a set of objectives and publish it • Information – constantly inform your stakeholders • Communication – agenda can’t be hidden • Facilitate, advocate, negotiate

15. Long term orientation • Planning the infrastructure and business climate for projects five years in the future • Create an outstanding business climate • Friendly regulations, rates • Local incentives • Form strategic business partnerships • Chamber of Commerce • Downtown business organizations • Regional partnerships • State representatives