Practical Strategies for Attracting Local Investments Barry Bluestone Economic Development Partnership Northeastern Un

2. Fundamental Proposition

3. Deal Makers

4. Deal Breakers/Deal Makers Cities often fail to adequately understand how the global economy is changing Cities often suffer from widespread misperceptions about their strengths and weaknesses What attracts investment to your city may be different than what you think What hinders investment in your city may be different than what you think

5. Deal Breaker #1

6. Deal Maker/Action Steps The Economic Development Partnership has created a powerful self-assessment tool for cities to better clarify their economic development goals and identify their competitive strengths and weaknesses relative to other urban locations. Through the Economic Development Self-Assessment Tool (EDSAT), cities now have access to the best thinking of private sector site location specialists to undertake an internal review of all aspects of their own community�s development process. The Economic Development Partnership is also able to provide ongoing economic development training for municipal leaders and managers that focuses on how to respond to opportunities in various industrial sectors.

7. Deal Breaker #2

8. Deal Maker/Action Steps EDSAT assists city officials in combining resources to better market their communities and respond to inquiries from firms, developers, and location specialists. EDSAT assists cities in making their websites more attractive to business by providing the information that businesses need to know in order to make rational decisions about locations.

9. Deal Breaker #3

10. Deal Maker/Action Steps Encourage the enactment of urban overlay zoning districts where there can be flexible use, expedited permitting, focused public safety efforts, and amenity packages essential to creating competitive advantage in an urban setting.

12. Deal Maker/Action Steps Make changes in the brownfields regulatory program to facilitate re-use of urban sites to facilitate faster clean up and further limit liability. Change state rules overseeing municipal property taxation that force new owners to pay delinquent taxes of previous owners.

13. Deal Breaker #4

14. Deal Maker/Action Steps Identify market ready sites and have them pre-permitted for industrial and commercial uses. The marketing of pre-permitted urban parcels can be done through city web sites, site finder services, and other commercial site services. Empower someone in the administration to specifically oversee the development process and respond aggressively and proactively to the needs of firms considering the city as a site for location. Create a permit system that allows for a single presentation of a development proposal to all boards with jurisdiction in the city and establish a specific time frame for community response in the initial stage of the review process.

15. Deal Breaker #5

16. Deal Maker/Action Steps Use the Tax Increment Financing (District Improvement Financing in Massachusetts) program to create revenue streams for critical infrastructure in urban locations. Site state and municipal facilities in urban locations to stimulate creation of amenities and other attractions to spur private sector commercial and industrial investment.

17. Lead Actors State Governments City Governments Regional Agencies Business Universities

18. The Local Economic Development Self-Assessment Process We surveyed corporate real estate and development professionals on location decisions: NAIOP (National and Massachusetts Chapter) CoreNet Global Based on the NAIOP/CoreNet survey the Economic Development Self-Assessment Tool (EDSAT) for Municipal Leaders was created

19. Sample

20. NAIOP/CoreNet Survey Issues Permitting Processes Labor Development and Operating Costs Business Environment Transportation and Access Quality of Life/Social Environment

21. Which location factors received the highest scores? On-site parking Rental rates Availability of appropriate labor Timeliness of approvals and appeals

22. Which location factors received the lowest scores? Municipal minimum wage law Access to rail Strong trade unions

23. Combined SamplesMean Scores for All Factors (1 = Very Important; 4= Unimportant)

24. When asked what they thought was most critical, what did location specialists tell us? Proximity to major highways, airports, and transportation routes Rents, land costs, and lease costs Availability of appropriate labor pool Permitting, approvals, and appeals processes Amenities and services nearby Pro-business/development friendly city

25. The Self-Assessment Tool (EDSAT )

26. What the Tool Does

27. The Framework for the Tool City officials and staff working together answer over 200 questions in 10 categories The results of the Self-Assessment Tool are secure and provided only to the local officials. Each community can choose to share the results at their own discretion The results provide an ability to ascertain a community�s economic development strengths, weaknesses, opportunities and threats

28. Interpreting the Results The community�s results are color-coded to provide rapid analysis of how they are doing relative to peer communities For each Self-Assessment Tool section, the results are interpreted in terms of what development and location specialists consider most important, somewhat important, and less important to attracting investment and jobs

29. EDSAT Testimonials What folks are saying

32. Sample Questions & Results A Brief Test Drive of EDSAT

33. Sample Question 1 What is the prevailing average hourly wage rate for mid-level clerical workers? $6.50 or less $6.51-$7.50 $7.51-$12.50 $12.51-$20 $20+

34. Sample Question 2 Do labor unions have a significant presence in the labor market of your jurisdiction? Very much Somewhat Not at all 

35. Sample Question 3 How many major public or private four-year colleges or universities are within 10 miles of your jurisdiction? 0 1-3 4+

36. Sample Question 4 Does your jurisdiction use the existing Tax Increment Financing (TIF) or other programs to provide tax breaks to businesses? Yes No

37. Sample Question 5 What is the tax rate on industrial/commercial property per $1,000 valuation? $ 0- 10.00 $ 10.01 � 20.00 $ 20.01 � 35.00 $ 35.00 +

38. Sample Question 6 The closest major/international airport is how many miles away? 0-5 miles 6-10 miles 11-20 miles 20-30 miles 31+ miles

39. Sample Question 7 What proportion of existing development sites within your jurisdiction have the following within 1 mile? a. Fast food restaurant All Most Some Few None 

40. Sample Question 8 What percentage of available sites for general office space have on-site parking?  0% 1-25% 26-49% 50-74% 75%+

41. Sample Question 9 What percentage of available sites are within 2 miles of an entrance or exit to a limited access major highway? 0% 1-25% 26-49% 50-74% 75%+

42. Sample Question 10 What is the average time (in weeks) from application to completion of the review process for the following? Building permit  0-4 5-8 9-12 13-24 25-36 36+

43. Sample Result 1

44. Sample Result 2

45. Sample Result 3

46. Sample Result 4

47. Sample Result 5

48. Sample Result 6

49. Sample Result 7

50. Sample Result 8

51. Sample Result 9

52. Sample Result 10

53. Customized EDSAT Reports In a typical report you will find: A summary of responses to the self-assessment questionnaire A peer analysis that highlights how responses compare to those from all other cities that have participated in the Economic Development Partnership Insights and comments from the Dukakis Center staff to help you think about these issues in a concrete, actionable way A ranking system noting which issues are more important to the development community

54. We hope that your community will join in the Economic Development Partnership and participate in the EDSAT program Thank you Barry Bluestone Marc Horne Heather Seligman Jessica Herrmann

55. http://www.northeastern.edu/dukakiscenter/ 617-373-7870