Lincoln, North Platte & Scottsbluff December 12, 2013 neded

1. Department of Economic Development Briefing Lincoln, North Platte & Scottsbluff December 12, 2013 www.neded.org

2. Agenda 9 a.m. Welcome & Introductions – Catherine Lang, Director 9:30 a.m. Economic Dev. Overview – Gary Hamer, Deputy Director 9:45 a.m. Business Dev. Division – Dan Curran, BD Div. Director 10:30 a.m. Break 10:45 a.m. Research Division-Dave Dearmont, Research Director 11:10 a.m. Community Dev. Division – Lara Huskey, CD Div. Dir. 11:40 a.m. Wrap-Up, Q & A 12 – 1 p.m. Lunch, provided by NPPD

3. Objectives • Discuss economic development: What is it? • Review DED programs & how to access them

4. Economic Development Overview

5. What is Economic Development? • Process that leads to creation & growth of businesses, jobs and communities • Measurable criteria: quantity, quality, sustainability and geographic location • Focus on businesses and jobs in primary industries (state level) • Local perspective is not always the same as the statewide perspective

6. DED’S Goals • Strive to create community & economic growth • Make Nebraska a better place to live, work, raise a family and grow a business • Accomplished by focusing efforts on: • Aggressive community development • Business retention & expansion • New business attraction • New business creation • Promoting our Great State • Special emphasis on the creation of new primary jobs & wealth creation

7. Defining Projects to Invest in • Primary Project Investment • New primary jobs generate new secondary jobs • Make strategic public investments • Primary Jobs • Where goods or services manufactured by Nebraska workers are sold outside of state bringing dollars from outside state • Create new wealth • Includes research and development funded by non-Nebraska sources (federal or international) • Seldom includes local or regional retail • Secondary Jobs • Where goods or services manufactured by Nebraska workers are sold locally or regionally (in-state)

8. How Can E.D. Be Influenced • Business activity occurs at the location of highest profitability • Critical factors: transportation, labor quality & availability, quality of life, sites, buildings and incentives • How economic development is done: • Product development • Business start-up support • Business retention and expansion • Business recruitment

9. Evaluating DED Impact Successful economic development initiatives should: • Grow stronger communities by supporting solid public infrastructure and high quality, affordable housing options that stimulate long-term community sustainability and future economic growth • Stimulate creation and retention of high quality, primary employment opportunities that improve per capita incomes and lead to a better quality of life for Nebraska residents • Generate additional wealth creation potential for Nebraska residents • Attract human and financial capital from outside the State • Grow a readily-available, top quality, skilled workforce to meet the ever-changing needs of business and industry, thereby retaining Nebraska’s best and brightest youth and attracting additional workforce and population to Nebraska communities

10. Marketing Nebraska In-State, Nationally and Internationally • Promoting Opportunities— • Quality of Life / Place and Cost of Living • Business Retention, Expansion and Recruitment • Entrepreneurship • People Retention and Recruitment • Jobs • Facebook, Twitter and YouTube

11. DED Annual Budget MAJOR AID PROGRAMS Community Development Block Grant (CDBG) Affordable Housing Trust Fund (AHTF) Business Innovation Act HOME Site and Building Development Fund (SBDF) Customized Job Training Invest Nebraska Civic, Cultural & Convention Center Fund

12. DED Initiatives • Battelle Report • What is needed in Nebraska is not just new economic development tools to raise value added, but a concerted effort to deepen the level of connections between industry, higher education and talent in the state • Focus on Three Major Initiatives: • A Nebraska Talent Advantage Initiative to connect college students/former Nebraskans with employers and to establish incentives for high skilled talent to stay in, or return to, Nebraska • A Nebraska Innovation Initiative to assist and enable growth-oriented emerging and existing companies in Nebraska to succeed • A NebraskaIndustry Cluster Initiative that includes tailored, industry-driven initiatives for workforce development, retention, expansion and business attraction targeted to Nebraska’s industry clusters

13. Business Development

14. Field Service 6 Field Service Representatives located across the state. Serve as front line for promoting DED programs and connecting point between businesses and resource providers. Business Recruitment New business and industry recruitment. Market the state and its assets to prospective businesses. InnovationManage new programs on business start up, research and development, new products and innovation, university partnerships. Cluster InitiativeCouncils will serve as primary directors to communicate business needs/solutions for industries to compete and innovate in a global economy InternationalInternational recruitment, export assistance, joint venture partnerships, Governor trade missions. China and Japan offices.

15. Business Development Field Staff Regions

16. Western Starr Lehl 505A Broadway, Suite 400 Scottsbluff, NE 69361 308-631-7780 starr.lehl@nebraska.gov Northeast/North Central Sheryl Hiatt, Field Service Manager PO Box 272 Spencer, NE 68777 402-340-6180 sheryl.hiatt@nebraska.gov East Central Pat Compton 4735 Avenue E Kearney, NE 68847 308-440-5960 pat.compton@nebraska.gov Central/South Central Andrea McClintic PO Box 1569 Kearney, NE 68848 308-440-1490 andrea.mcclintic@nebraska.gov West Central/Southwest VACANT East/Southeast Lynn Kohout PO Box 94666 Lincoln, NE 68509 402-440-2599 lynn.kohout@nebraska.gov Hispanic/Latino Business Consultant TO BE ANNOUNCED

17. Business Retention & Expansion • BR&E is a strategy to work with existing businesses • Interview business leaders on business climate • Demonstrate appreciation of business to local economy • Identify opportunities for growth and expansion • Help existing businesses solve problems • Helps DED build program strategies to respond to needs of businesses

18. Business Assistance Activities Financial Assistance Types Of Assistance: Nebraska Advantage Job Training Community Development Block Grant Nebraska Progress Loan Fund Site and Building Development

19. Economic Development Certified Community • Benchmarks include: • Organizational capacity • Business Retention & Expansion program (BR&E) • Target market • Workforce issues • Infrastructure • Local financing • Building and site availability • Location One Information System (LOIS)

20. Benefits of becoming an EDCC • Better positioned for economic development opportunities • Identified and documented as ready for economic development • Marketed to business and industry • Publicly recognized as economic development leaders • ED CDBG points on scoring • Eligible to apply for “Downtown Revitalization” • NIFA housing tax credit points

21. Business recruitment • Actively recruit new businesses for increased investment and employment opportunities • Activities: • Working with Consultants to develop enhanced understanding of Nebraska and benefits • Focused efforts on targeted industries • National/International recruitment trips • National Real Estate associations and industry trade shows

22. Business Recruitment Working with Prospects • Help define prospective location criteria, timetable and expectations of client • Provide Request for Information (RFI) to selected communities that meet criteria • Coordinate unified Nebraska response to RFI • Preparation of Incentive information including Nebraska Advantage, CDBG and Customized Job Training

23. Local Recruitment Tools • Available land and buildings must be listed in LOIS and available • LB 840-Local Option Municipal Economic Development Act – use sales/property tax for economic development • Tax Increment Financing • Local government funds for marketing and recruiting

24. DED Talent Initiatives • Intern Nebraska • Strengthen connections between students and companies • Address high demand, skill shortage areas • Provides financial assistance to companies in Nebraska who are creating new internships. • Grant awards may be up to 50% of the cost of the internship for eligible projects up to $5000 per internship. • Businesses that hire students receiving Federal Pell Grants may be awarded a grant of up to 75% and an additional $2500. • internNE.com

25. DED Innovation Initiatives • Planning Grants (SBIR Phase 0) • Small businesses that qualify under the Small Business Innovation Research (SBIR) program for the purposes of planning for an application under the SBIR Program. Maximum Grant Amount $5,000 • Matching for SBIR Grants (Phase 1 and Phase 2) • Small businesses that qualify for funding under the SBIR program – Phase 1 or Phase 2. 65% of the federal grant with a maximum of $100,000

26. DED Innovation Initiatives • Prototyping Grant • Business with no more than 500 employees or to individuals for the purposes of creating a prototype of a product stemming from research and development at a business operating in Nebraska or a public or private college or university in Nebraska. Maximum Grant Amount $50,000 (50% Match) • CommercializationInvestment • Business with no more than 500 employees or individuals for the purposes of commercializing a product/process. Maximum Grant $500,000 (50% match)

27. DED Innovation Initiatives Research and Development Businesses using faculty or facilities of a public or private college or university in Nebraska for applied research or development of new products or use intellectual property. Maximum Grant $100,000 Phase I, $400,000 Phase II Microenterprise Program Microenterprises – micro lending and technical assistance to for-profit entities with no more than 10 full-time equivalent employees through micro-loan delivery organizations. Maximum Loan Amount of $50,000. (35% Match)

28. DED Innovation Initiatives • Nebraska Progress Loan Fund (NPLF) • Loans to small primary businesses developing, modifying, or acquiring new technology. Loans for expanding small businesses • Nebraska Progress Seed Fund (NPSF) • For Angel Fund Investments • NPSF will award seed capital funds that match other capital investments from Angel Funds.

29. Industry Cluster Initiative • Objectives: • Private sector driven • Resource providers to assist (government, education, services, etc.) • Address common needs of firms in a cluster from workforce development to technical assistance to market access • Better organize and focus state economic development services to advance competitive industries • Enable more broad-based initiatives to engage colleges and universities to address industry needs and opportunities

30. Industry Cluster Initiative Manufacturing • Work with key private sector individuals to effectively facilitate industry councils. • Councils will serve as primary directors to communicate business needs/solutions for industries to compete and innovate in a global economy. • Goal is to move the represented industry sector up the value curve for increased value of goods/services produced. Information Technology Transportation, Logistics Bio Fuels or Food Processing

31. Industry Cluster Initiative • Business retention and expansion • Using business survey tools to monitor key businesses in industry clusters to understand business climate, industry stability and how best to develop and change government programs to fit industry needs in areas such as workforce, education, tax climate, etc. • Innovation, R&D • Increase the amount of research and development conducted in Nebraska in order to increase the amount of new products/services and the value of the products and services. • International trade and expansion • Assistance with new markets/exporting, forming joint partnerships with international companies to produce new products, joint research and development, testing, etc. • Industry recruitment • Target businesses and industries that best compliment existing businesses to form local and regional clusters that move an anchor business or industry up the value curve.

32. NeMAC Nebraska Manufacturing Advisory Council FacebookTwitterPinterestGoogle+Blog Council Coordinator Whitney Bumgarner whitney.bumgarner@nebraska.gov 402-471-6281

33. Information Technology Council Council Coordinator Jacob Knutson jacob.knutson@nebraska.gov 402-471-3113 BIO Nebraska Nebraska Logistics Council

34. Collaborative efforts moving forward… Working with NDE and DOL: Nebraska Career Clusters Community Colleges Universities Private Colleges NROC (districts) Regional and local development groups Legislators Other Providers

35. International Trade & Development • Import/export assistance • Business recruitment • Promote international partnerships • New-to-export consulting • Trade missions • Nebraska Center Japan & China Contact: Joe Chapuran at joe.chapuran@Nebraska.gov

36. Break

37. Research

38. Research Initiatives • Labor Shed Study • GIS—Upgrade capabilities • Updating “A Competitive Advantage Assessment and Strategy for Nebraska” (Battelle study)

39. What is a Labor Shed Study • A Labor shed study is based on a survey sent to a random sample of households in a region from which an employment center draws it commuting workers • A Labor shed study is designed to determine the characteristics of the labor pool in a particular area • Location of workers • Skills, training, and education of workers • Wages and desired wages • Commuting preferences • Underemployment • Willingness to change jobs or reenter workforce

40. Uses of a Labor Shed Study • Survey results can be used to attract, recruit, and retain businesses and industries • Promoting availability and skills of local workforce • Provides data about numbers and quality of potential employees • Provides data about wage levels needed to attract potential employees • Provides information needed to develop workforce skills and willingness of workers to learn new skills

41. Labor Shed Study • Pilot project in conjunction with the Nebraska Department of Labor’s Labor Market Information division. • Surveys were mailed to 12,000 households in the project area. • Initial reports will be completed in January. • A second study is under consideration for the metro areas to be completed in the spring/summer of 2014. • A third study, funds available, is under consideration for the summer/fall of 2014. • Currently using federal grant funds to complete pilot.

42. Upgrade of GIS Capabilities • Geographic Information System • Can map anything that is tied to an address or GPS coordinate • Purchased a Business Analyst package • Business data for all states • Better ability to map and understand industry clusters from a geographical perspective

43. Upgrade of GIS Capabilities • Examples of uses: • Determine spatial patterns of businesses within industry groups • Where are the best sites for proposed industrial parks • What areas are economically distressed

44. Update Competitive Advantage Study • “A Competitive Advantage Assessment and Strategy for Nebraska” • Aka the “Battelle study” • The study was completed in October 2010 • Much of the available economic data ended in 2008 • Chance to see how Nebraska weathered the Great Recession • Review the Nebraska industry clusters identified in the report • Review the progress on the original report’s action plan items • Cluster initiative • Talent initiative • Innovation initiative

45. Community Development

46. Site and Building Development • Financed with a documentary stamp tax of $.25 tax for every $1,000 of valuation on all real estate transfers • Estimated approx. $2 million/year • SBDF Plan prepared for years 2014-2015 • For Industrial-ready sites and buildings • Commercial/retail business parks not eligible

47. Site and Building Development • First Priority - Projects where a business commits to locate at a Nebraska site • Business Recruitment/Expansion projects • Possible application cycle for speculative sites/buildings • Eligible applicants • Governmental Subdivisions • Non-profit development organizations 501(c)(3), 501(c)(4), or 501(c)(6)

48. Job Training • Provide training assistance to businesses that retain and create quality jobs • Typical award range: $1000 to $4,000 per job • Non-administrative positions • Eligible Applicants • Businesses who engage in selling primarily to a non-Nebraska market

49. Nebraska Progress Loan Fund • Lower risk for private lenders to encourage private investment • Direct business assistance in the form of a 0% or low-interest loan • Typical loans range from $50,000 - $500,000 • Business size 500 employees or less

50. CDBG – Types • Downtown Revitalization Initiative • Economic Development • Comprehensive Revitalization • Comprehensive Investment & Stabilization Planning Public Facilities Water/Waste-Water assistance Tourism Development Initiative Housing