Economic Development for a Healthy Community!

1. Economic Development for a Healthy Community! League of Oregon Cities Portland, Oregon 2009 By Dennie Houle Business Development Officer Oregon Business Development Department

2. Economic Development The average citizen will probably say that economic development is an activity that is designed to bring new business to town. What would your commissioners, council members or supervisor say?

3. What Is Economic Development? • Economic development, economic development is fundamentally about enhancing the factors of productive capacity - land, labor, capital, and technology - of a national, state or local economy. (EDA) • Economic Development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well being of a community …(IEDC)

4. What is Economic Development? • economic development as an organized effort ... to attract new business into an area or to encourage existing business to expand (Altus Group)

5. Tax incentives Technical assistance Non-traditional Financing Infrastructure and zoning Industry Cluster support Workforce Development Marketing assistance Networking and political support Education K - Post Graduate Advocacy Economic Development Tools

6. Economic Development Techniques • Business Retention • Business Expansion • Business Recruitment • Business Financing • Workforce Development • Infrastructure, Technical Assistance and Permitting • Marketing and Promotion • Community Development

7. Economic Development organization – The System • Federal Department of Commerce – Economic Development Administration, Department of Agriculture, Etc. • State Agencies: Oregon Business Development Department

8. Regional Agencies • Economic Development Districts – supported by federal EDA • Local economic development organizations • Port districts and special districts • Quasi-governmental organizations – development districts • Workforce boards • Private development organizations

9. Business Retention • Love your existing businesses first! • How do they feel about being in your community? • How are they doing? • What do they need to be more successful? • What is going on in their industry? • Is there a cluster opportunity?

10. The Business Retention & Expansion plan of work • Confidential business visits – formatted to understand company dynamics • Industry forums to focus on business topics • Individual work-plan developed from business visits • Cluster and Consortium activities for multiple companies in the region

11. Business Recruitment • Marketing your community to target industries outside your region that are likely to expand and/or relocate. • Remember that a company that is in your community is a potential recruitment target for another community down the road or from another state or country! • Know your target industries – The shotgun approach is ineffective!

12. Business Recruitment • Be part of a system – Don’t try to go it alone! Get networked in to the state and regional efforts. • Be prepared! Have a team in place that is already working with existing businesses. • Make sure your community is ready for new industry. • Make sure you are recruiting business your community wants!

13. Business Financing • Access to capital – The GAP • Loan ratios, underwriting criteria, sources & uses, the three C’s, cost of $ - and the list goes on! • Start-ups, entrepreneurs, fast growing companies, cyclical industries, non traditional industries, companies facing difficulties, etc.

14. Business Financing • State, regional and even local organizations with specific tools and purposes. • The money is not the problem but is a symptom! • Get to know the network and make the highest qualified referral possible! Make sure the client knows what to expect!

15. Workforce Development • The workforce is getting older! • New employee recruitment and preparedness • Existing employee skill upgrading to meet new technology implementation and career advancement • Communicating with the educational systems

16. Infrastructure, Technical assistance and permitting • Does your community have commercial & industrial zoned properties that are served by utilities and roads? • How are businesses treated when they are “at the counter” with their project? • Do you have a business friendly permitting process? • What kind of technical assistance is available to expanding businesses?

17. Marketing and Promotion • Don’t “go it alone” unless you are a powerhouse. Become part of a regional, connected strategy • Leverage every penny! • Sell your strengths! • Look for Low Investment – High Return techniques

18. Community Development • Does you community have a vision? • The Comprehensive Plan guides all! • Is your zoning up to date for the times? • Do your permitted activities match your intentions? • How educated in economic development are your elected officials? • Have you streamlined everything possible?

19. Community Development Economic Development Techniques • Redevelopment areas – Tax increment financing techniques • Scaled and fair System Development Charges that are business friendly • Public infrastructure investments that create capacity adequate for business development • Become proactive in land development

20. Community Development Economic Development Techniques, cont. • Create a “One Stop” for permitting and streamline • Keep current with flexible zoning and multiple use possibilities including adaptive reuse of existing buildings • Funnel grant funding towards activities that benefit business development

21. It takes a village to grow a business! • Doing the best community development work possible IS Economic development! • Be Part of a team! • Develop approaches that support economic growth AND pays for itself! • Become well versed in public financing techniques that support industry

22. Where to Get More Information • Oregon Business Development Department - http://www.oregon.gov/OBDD • Google Economic Development techniques • www.mrsc.org/govdocs/WACTED-Learn.PDF Learning to Lead by Maury Foreman and Jim Mooney