AGENCY

1. AGENCY OVERVIEW 2012 Mayor’s Summer Conference Rob Gragg Regional Development Team Director

2. Divisions and Programs Business Customer Services State Incentives Martin Roberts Director

3. Divisions and Programs Community Development Community Development Block Grants (CDBG) Scott Myers Director

4. Divisions and Programs Global Recruitment Foreign Direct Investors (FDI) Erika Lucas Director

5. Divisions and Programs FDI Global Recruitment Oklahoma’s Foreign Direct Investors: • Michelin • Umicore • Lufthansa • BAE Systems • AMEC • Lafarge • Lucent Technologies • Sanofi-Aventis • Sodexo • Siemens • ThyssenKrupp • Solvay Chemicals • Veolia Environmental • Sigma Alimentos • And more… Key Industries: Aerospace Traditional and Renewable Energy Biosciences Advanced Food Processing and Packaging Corporate Services Warehousing/Logistics/Distribution Advanced Manufacturing Meteorological Services Technology

6. Divisions and Programs National Recruitment Incentives Requests For Proposals (RFPs) Charles Kimbrough Director

7. Divisions and Programs Workforce Development Certified Work Ready Communities Norma Noble Director

8. Divisions and Programs Workforce Development Eligibility • A county or region may apply Process • Application is made through Commerce Criteria • 3% of the existing workforce must earn a Career Readiness Certificate (CRC) credential • 25% of the available workforce must earn a CRC • Either a minimum of 85% high school graduation rate or 82% of high school seniors earn a CRC Certified Work Ready Communities

9. Divisions and Programs Workforce Development

10. Divisions and Programs Regional Development Team • Request For Proposals • Business Retention and Expansion • Community Development • Economic Development • Certified Work Ready Community • Regional Partnerships • Incentives • Point of Contact Rob Gragg Director

11. Grants • Community Infrastructure • Economic Development • Infrastructure Financing (EDIF)

12. Developing Projects Know What You Want: • Industrial • Manufacturing • Call Centers • Retail

13. Developing Projects Inventory of Available Assets • Land • Buildings • Workforce • Capital • Local Incentives • Utility Capacity • Utility Ownership • Transportation • Rail • Highway • Air

14. Developing Projects Inventory of Existing Businesses Who are your major employers? Who are the smaller employers? What is the overall mix? Any commonality / clusters?

15. Developing Projects ? Got Buy-In Citizen Input or Strategic Plan? Visioning ?

16. Developing Projects Other Factors: • What is your Market Area? • Proximity to Regional Nodes? • Push vs. Pull Factors (Reilly’s) • Know what your demand is? • Retail / Service Leakage • What’s Your Plan?

17. State Incentive Programs Quality Jobs Program • Cash payments of up to 5% of new payroll for up to 10 years • Must meet average county wage or $30,754, whichever is lower • Company must achieve $2.5M annual payroll within 3 years • Must offer basic health insurance • May be combined with Investment / New Jobs Tax Credit under certain circumstances

18. State Incentive Programs Small Employer Quality Jobs Program • Cash payments of up to 5% of new payroll for up to 7 years • Must have 90 employees or less • Must meet 110% of the average county wage • Must have 75% out-of-state sales • Must offer basic health insurance • Targeted to manufacturers

19. State Incentive Programs Investment / New Tax Credits • Choice of tax credit based on investment OR new employees • Five-year state tax credit on the greater of 1% per year of investment in new depreciable property or $500 per new employee • Credit doubles in Enterprise Zones • Credit doubles if investment exceeds $40 million • Minimum investment of $50,000 • Tax credits accrue and may be claimed on July 1, 2012 • May be combined with Quality Jobs under certain circumstances

20. State Incentive Programs 21st Century Quality Jobs Program 21 st • Requires at least 10 full-time jobs at an annual average wage of the lesser of $97,381 or 300% of the county’s average wage • Allows a net benefit rate of up to 10% of payroll for up to 10 years • Out-of-state sales must be at least 50% CENTURY

21. State Incentive Programs Prime WIN • Provides a cash benefit and a certified subcontractor base for federal prime contractors • Performance-based program that requires subcontracting with an Oklahoma workforce • Offers federal prime contractors a cash rebate of up to 2% of the Oklahoma workforce loaded labor cost • Cash incentives paid quarterly for a maximum of 10 years by the Oklahoma Tax Commission

22. State Incentive Programs • County/municipal roads & bridges • Water treatment facilities • Solid waste management facilities • Railway and utility systems • Other infrastructure assets owned by local government Pooled Finance A $100 million Infrastructure Pool is created for bonding local governments for: • Bonds issued by the infrastructure pool are financed or repaid from sales taxes voted by local community. • A $100 million Economic Development Pool is created for financing to local governments in conjunction with a for-profit entity economic development projects in the state. • Debt issued through the Economic Development Pool may use withholding taxes generated by the for-profit entity to repay the debt.

23. State Incentive Programs Pooled Finance • Requires a letter of determination from the Oklahoma Department of Commerce that the project is net benefit positive for the state. • 65% of the net proceeds from both the Infrastructure Pool and the Economic Development Pool must be used by municipalities that do not exceed 300,000 people. • The remaining 35% may be used for any eligible local government, including Tulsa and Oklahoma City. • Effective July 1, 2009 • Issuing capacity by Oklahoma Development Finance Authority (ODFA) is renewable.

24. State Incentive Programs Native American Lands Tax Credit • Businesses locating or expanding in these areas benefit by accelerated depreciation of investment and by employment tax credits when employing tribal members or their spouses. • Federal legislation clarifies the location of special American Indian lands in Oklahoma that qualify for related tax credits benefiting new and established businesses in Oklahoma.

25. State Incentive Programs Native American Lands Tax Credit • More than two-thirds of the lands in Oklahoma meet the IRS-qualifying definition of former Indian lands and qualify for accelerated depreciation. Qualifying lands may include previous tribal land which may have been transferred to new ownership. • The federal employment tax credit is applicable to businesses located in the qualifying areas that employ enrolled American Indians and their spouses.

26. State Incentive Programs Native American Lands Tax Credit The Tax Relief, Unemployment Insurance Re-authorization, and Job Creation Act of 2010, signed by President Obama Dec. 17, 2010, includes extension through Dec. 31, 2011 of the tax incentive for businesses locating on former Indian lands. The tax incentive for business locating on former Indian lands has expired; however, it is expected to be renewed.

27. State Incentive Programs • 5–Year Ad Valorem Tax Exemption • Sales Tax Exemption

28. Lead Development and the RFP Process • Building a Local Business Attraction Program • RDS Distribution Chain • RFP for Dummies RFP

29. Regional Development Specialists • Business Retention & Expansion (BR&E) • Community Development and • Economic Development • Global Business Services • Business Attraction

30. Regional Development Specialists • Regional Economic Development Partnership Assistance and Development • Entrepreneurship • Workforce Development • Referrals to Commerce and Partner Programs Southeast West Central North Central OKC Metro Northwest Southwest Northeast

31. Stan Ralstin Regional Development Specialists

32. Rob Gragg Director, Regional Development Team (405) 815-5259  (405) 596-0314 rob_gragg@OKcommerce.gov