1 / 15

Economic Development

Economic Development. Greater Lafayette Progress, Inc. Not-for-Profit C 3 Membership Based Organization 2003 Budget: $644,000 Employees: 5 $$ from cities, Cou, CVB, programs. Mission Statement.

tate
Download Presentation

Economic Development

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Economic Development Greater Lafayette Progress, Inc. Not-for-Profit C 3 Membership Based Organization 2003 Budget: $644,000 Employees: 5 $$ from cities, Cou, CVB, programs

  2. Mission Statement • The Mission of Greater Lafayette Progress, Inc. is to promote economic development and continued growth and well being of the Greater Lafayette community. • Greater Lafayette Progress will strive to retain and expand existing business and industry, to attract and encourage new business and industry, to capitalize on technology and innovation, to work closely with Purdue University and to promote entrepreneurship

  3. Basic Job Theory • Agriculture • Sell product or service outside of the economic region • Greater Lafayette region includes Tippecanoe, Benton, Carroll, Clinton, Montgomery, Fountain, Warren and White Counties • Retail/Government/Tourism

  4. Basic Job Multiplier • Bucket Theory • Money In • Money Multiply • Money Out • Economic Development, Community Development, Commercial Development • What are the factors influencing the location decision?

  5. Property Tax Payment • Formula for Property Tax • Assessed Value*Rate=Tax Amount • Formula for Tax Rate • Certified Levy/Assessed Value=Tax Rate • Formula for Total Tax Bill • Total Tax Rate for each Taxing Authority • SIA Tax Payment

  6. Competition • Over 11,000 economic development organizations • Not-for-profit Local Economic Development Organizations (LEDO) • County Governments • City Governments • Chambers of Commerce

  7. OEM Facilities • 25 OEM facilities studied: 13 in the South, 12 in the Upper Midwest • Total company investment in facilities: $13.8 billion • Total jobs created or renewed: 48,697 ($283G/job) • Total incentives received: $3.2 billion—equal to 23% of total Investment • Average incentives per facility: $126 million • Average incentive per job: $64,757

  8. Community Strengths and Weaknesses Community Audit of the Greater Lafayette Region The Competitive Environment • Selecting a company’s location is a critical choice • Competition for business attraction and investment is intense • A wide range of global locations with strategies and incentives • Advanced technologies = More global mobility • The region must maximize its competitive advantages in comparison to competing locations

  9. Community Strengths and Weaknesses (2003) • ■Strategic Geographic Location Competitive Advantage • ■Transportation Infrastructure Competitive Advantage • ■Employers/Economic Base Competitive Advantage • ■Workforce Competitive Advantage • ■Ed Institutions, Research Centers /Training Facilities Competitive Advantage • ■K-12 Education Competitive Advantage • ■Utilities Competitive Advantage • ■Industrial and Commercial Properties Competitive Advantage • ■Economic Development Climate Competitive Advantage • ■Housing Competitive Advantage • ■Quality of Life Competitive Advantage • ■Telecommunications Advantage • ■Image Advantage • ■Local and State Taxes Competitive /Competitive Disadvantage • ■ Financial Incentives and Resources Competitive /Competitive Disadvantage • ■ Research Parks No Rating

  10. Recruiting • Be Prepared • Demographics, Community Resources, Site Information, Community Leadership Support, Local Governmental Support, Incentive Programs • Resources/Partners • Cinergy, Norfolk Southern, Indiana Department of Commerce, Realtors, Site Selection Companies

  11. Local Tools for Development • Economic Development Income Tax (EDIT) • Job Training, Site Prep, Site Purchase, Infrastructure assistance • Tax Abatement • Phase in of personal and/or real property taxes • Tax Increment Finance • Create fund to support job training, site prep, site purchase, infrastructure assistance.

  12. Tax Abatement • Real Property Taxes • New Buildings/Building Expansions • Personal Property • Manufacturing equipment, R&D equipment, Laboratory equipment

  13. Tax Increment Finance (TIF) • TIF is a financing tool which captures increases in assessed value from new development • Can capture increases in real property and, at times, depreciable personal property assessed value.

More Related