Appalachian regional commission

1. Appalachianregionalcommission Alabama Workshop August 28, 2019

2. HELLO and WELCOME!Workshop Agenda • ARC Overview • ARC 101 • ARC Project Development • ARC Process • Match • Performance Measures

3. Workshop Learning Objectives The workshop will provide support to Appalachian communities in Alabama so that they may plan for effective use of ARC funding, understand Alabama’s and ARC’s investment priorities, discuss expectations for the applications, and help develop impactful projects.

4. Appalachian Region • 13 states • 420 counties • 205,000 square miles • 25 million people • 73 local development districts

5. Appalachian Regional Commission ARC VISION STATEMENT Appalachia is a region of great opportunity that will achieve socioeconomic parity with the nation ARC MISSION STATEMENT To innovate, partner and invest to build community capacity and strengthen economic growth in Appalachia

6. What does ARC do? CREATE ECONOMIC OPPORTUNITIES DEVELOP A READY WORKFORCE BUILD CRITICAL INFRASTRUCTURE CULTIVATE NATURAL AND CULTURAL ASSETS FOSTER LEADERSHIP AND COMMUNITY CAPACITY

7. County Economic Status, FY 2020 ARC’s five county economic status designations are based on three indicators: three-year average unemployment rates, per capita market income, and poverty rates. • Distressed: The most economically depressed counties, ranking in the worst 10% of the nation's counties. In FY 2019, 81 Appalachian counties are designated as distressed. • At-risk: Counties at risk of becoming distressed. • Transitional: Counties transitioning between at-risk and competitive status. • Competitive: Counties that are able to compete in the national economy but don’t rank in the highest 10% of the nation's counties. • Attainment: The economically strongest counties, ranking in the best 10% of the nation's counties.

8. ARC Strategic Plan, 2016–2020

9. ARC Strategic Goals ECONOMIC OPPORTUNITIES: Invest in entrepreneurial and business development strategies that strengthen Appalachia's economy. READY WORKFORCE: Increase the education, knowledge, skills, and health of residents to work and succeed in Appalachia. CRITICAL INFRASTRUCTURE: Invest in critical infrastructure—especially broadband; transportation, including the Appalachian Development Highway System; and water/wastewater systems. NATURAL AND CULTURAL ASSETS: Strengthen Appalachia's community and economic development potential by leveraging the Region's natural and cultural heritage assets. LEADERSHIP AND COMMUNITY CAPACITY: Build the capacity and skills of current and next-generation leaders and organizations to innovate, collaborate, and advance community and economic development.

10. ARC Investments, FY 2018 • Invested 125.6 million • 522 economic development projects • Will create or retain more than 26,600 jobs • Will train more than 34,000 students, workers, and leaders • Attracted an additional $188.7 million in other project funding • Leveraged $1.49 billion in non-project private investment

11. Funding and Leveraged Private Investment for All ARC Projects, FY 2018

12. Alabama Investments • During FY 2018, ARC investments in Alabama’s ARC designated counties provided the following: • $9.1 million invested in 50 projects • 1,720 jobs created or retained • 16,780 students and workers trained and/or educated • $12.9 million in matching funds • $178.3 million in leveraged private investments

13. Resources at www.arc.gov • Research and data on key economic, demographic, and other factors that affect economic development in Appalachia. www.arc.gov/researchwww.arc.gov/data • County-level maps on data topics including economic status, education, income, poverty, unemployment, and population. www.arc.gov/maps • Fact sheets on Appalachian statistics and on ARC investments and research findings. www.arc.gov/factsheets

14. What is Economic Development? • How do we define ‘economic development’? • What are the elements of economic development? • How do we measure economic development?

15. What is Economic Development? • How do we define ‘economic development’? • Adoption of new technologies, transition to a multi-sector-based economy, and general improvement in living standards.

16. What is Economic Development? • How do we measure economic development? • Jobs obtained • Jobs created • Jobs retained • Businesses improved • Businesses created • Leveraged private income

17. Are you engaged in economic development? • Can you (Do you want to) measure your success by ARC’s measures of economic development? • Not everything fits. • Not everyone wants to fit.

18. What is Economic Development? • How do we define ‘economic development’? • Increased cash flow into the community • Increased resiliency • What are the elements of economic development? • Labor force growth • Business growth • Investment growth • How do we measure economic development? • Jobs obtained • Jobs created • Jobs retained • Businesses improved • Businesses created • Leveraged private income Immediacy We need to see it in the next few years..

19. ARC Project Highlights ARC is committed to investing in projects that are: Impactful Collaborative Sustainable

20. What does this mean?

21. Strategic ARC Investment GoalsKey Project Components Collaborative Impactful Sustainable Critical Infrastructure

22. Project Highlights – Ready WorkforceWest Alabama Works • Purpose: To implement workforce strategies: • Industry-driven training with community college partners • A Community Resource Center for short-term training • Partnership with Energy AL and Auto Manuf. Assoc. to develop business specific energy plans • Renovation of a High School and Training Center • Performance Measures • Outputs: • 1000 workers and 45 businesses served • 500 students served • Outcomes: • 800 workers and 25 businesses improved • 425 students improved Image Source: WAW website 7/18

23. Project Highlights – Critical Infrastructure West Blocton Sewer Improvements (Bibb, AL) • System improvements in the towns of West Bocton and Woodstock to accommodate new growth in the industrial park • Upgrades to West Blocton's treatment plant, • Several pump station upgrades, • Addition of inter-system data acquisition and control technology. This Photo by Unknown Author is licensed under CC BY-SA

24. Project Highlights – Critical Infrastructure West Blocton Sewer Improvements (Bibb, AL) • System improvements in the towns of West Bocton and Woodstock to accommodate new growth in the industrial park • Upgrades to West Blocton's treatment plant, • Several pump station upgrades, • Addition of inter-system data acquisition and control technology.

25. Project development • What is the problem you are trying to solve or fix? • How will you know when it is better? Or at least on the mend? • Does this fit with our definition of economic development? • What measures will mean success? (Or on the path toward success?)

26. Project development • What do you have to DO to get from where you are to where you want to be? • Observable actions • Value of each action in terms of outcomes • Sequence and time each action • Break actions into cost estimates • Man hours • Supplies and equipment • Space/rent and other operating costs

27. Project development Budgeting Break project into phases by time or activity? First activity/set of activities that can standalone and show results How much do you need to make it work? What counties are you serving? What is their match ratio? Do the math….

28. Project Development • Tell the project’s story • Don’t provide a vague budget. Details and per unit cost estimates are required • No single-line budgets or vague categories • We love longer stories budget-wise

29. Beyond the checklist • Alignment of your project with a strategic plan including ARC and Alabama’s strategies • Keep in mind the scale of your project. Remember takes same amount of work with small vs. large projects • Very large projects consider phasing • Explain how your project fits into the big picture • Is your proposal fit into the ARC mission of economic development

30. Additional Considerations- Uphill Battle • Community facilities, senior centers, assisted living facilities, routine road maintenance, Municipal Services/Operations • Beautification/public art or road paving with no clear economic development impact or outcome • Speculative buildings with intent to sell to private company • Staff salaries and non-financially sustainable projects • Beneficiaries that are personal residences • Multi-year • Premature funding

31. ARC Process • Goal is to get to yes • Funding determinations are made by State Alternate/Governor and ARC Federal Co-Chair • Application submitted by State of Alabama • Reviewed by designated ARC Program Coordinator • Reach out to State Program Manager and applicant to resolve issues • Prompt responses by applicant results in prompt approval • Recommended applications signed by Executive Director and Federal Co-Chair

32. ARC Grant Approval Process Applicant Project Coordinator Review, ensure readiness, provide TA, write up ARC’s DCI or BWI (Critical Infrastructure, Business & Workforce Investment) To: ARC Executive Director From: State Alternate State ARC Program • LDD Consultation as needed with general counsel, state, commission, and federal staff. Federal Office For final review and approval Executive Director For recommendation to Federal Co-Chair DCI or BWI Director Approved original to General Counsel For contract preparation & execution ARC Finance Obligates funds

33. Match Requirements • Matching funds are funds that contribute to overall project costs • Match is required for all ARC projects • Demonstrate a matching share from non-ARC sources such as non-federal, other federal or a combination of sources • Maximum share of ARC assistance determined by ARC classification of the county or counties served by proposed activity • Refer to ARC economic designations and to determine maximum ARC share for each county • For ARC multi-county projects, special matching rules apply

34. Match Requirements • ARC match rates determined by county designations, based on percentage of total project • County designation Max ARC Min Match *Distressed 80% 20% *At-Risk 70% 30% *Transitional 50% 50% *Competitive 30% 70% *Attainment 0% 100%

35. What Counts as Match? • Cash • In-kind • Volunteer labor • Donations • Other grant sources • Loans • Force account labor • Waiver of fees

36. Valuing In-kind Match • Volunteer services • Employee time • Real Estate like land and/or buildings (MIA appraisal required) • Equipment

37. Common Challenges with Match • Proper documentation of match • Procrastination on obtaining the match • Underestimating time to secure match • Wrong match calculation for multi-county projects • Inaccurate service area

38. ARC PERFORMANCE MEASURES—DEEPER DIVE

39. Performance Measure Guidance See Handout in Packet . . .

40. Deeper Dive Performance Measures • Each ARC project must have at leastone output and one outcome • Focus on a few major outputs and outcomes that reflect project intent • Measures are required in the application phase (projected) and at the project end date (actual) • Most projects use “paired” measures: • Students Served  Students Improved • Businesses Served  Businesses Improved • Some projects use “stand-alone” measures: • Jobs Created / Retained • New Visitor Days • Linear Feet / Square Feet of Improvement • When in doubt, ask ARC staff for technical assistance & guidance

41. “Paired” The output and outcome measures below must be paired as shown: Performance Measures

42. EXAMPLES PerformanceMeasures • Linear feet of pipe • MGD capacity • Businesses/ households served • Households improved • Businesses improved • Jobs created • Jobs retained • LPI Water, Sewer, Smart Grid, Industrial Site

43. Letters: Jobs Created/Retained PERFORMANCE MEASURES • On official letterhead of company creating, retaining jobs • Number of job openings/hires or jobs retained/improved they anticipate • Training will likely qualify candidates • Signature

44. Questions?

45. Karen Fabiano Crystal Davis kfabiano@arc.gov Cleandra Dixon