what is economic development? lee lewellen – ceo, indiana economic development association

What is Economic Development?

Lee Lewellen – CEO, Indiana Economic Development Association

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The IEDA defines economic development as the facilitation of investment that leads to long-term community prosperity.

The most commonly identified goal of economic development:

The most commonly identified goal of economic development:

Jobs

The most commonly identified goal of economic development:

JobsTax Base

Not all jobs and tax base are created equal….

Ed Morrison – Purdue Center for Regional Development

Three kinds of money in the local economy:

Bad money

Neutral money

Good Money

Ed Morrison – Purdue Center for Regional Development

Three kinds of money in the local economy:

Bad money

Money that ‘leaks’ out of the local economy

Ed Morrison – Purdue Center for Regional Development

Three kinds of money in the local economy:

Neutral money

Money within the economy that only circulates locally

Ed Morrison – Purdue Center for Regional Development

Three kinds of money in the local economy:

Good Money

New money that is imported into the community that generates new spending and additional jobs

Ed Morrison – Purdue Center for Regional Development

Three kinds of money in the local economy:

Good Money

New money that is imported into the community that generates new spending and additional jobs

Multiplier effect

Traditional, ‘industrial’ development

Cheap land

Traditional, ‘industrial’ development

Cheap land

Available and cheap infrastructure (water, sewer, electric, roads, railroad, etc.)

Traditional, ‘industrial’ development

Cheap land

Available and cheap infrastructure (water, sewer, electric, roads, railroad, etc.)

Cheap and ignorant workforce

Richard Florida

Rise of the Creative Class, 2002

‘Creatives’ choose where they want to live first, then secure a job….

21st Century Economic Development versus 20th Century ‘Industrial’ Development

Workforce – Talent – is often the number 1 consideration for relocating companies

21st Century Economic Development versus 20th Century ‘Industrial’ Development

Workforce – Talent – is often the number 1 consideration for relocating companies

‘Place’ matters

21st Century Economic Development versus 20th Century ‘Industrial’ Development

Workforce – Talent – is often the number 1 consideration for relocating companies

‘Place’ matters

Relocation and expansion decisions are part of a web of considerations that include community and regional assets

21st Century Economic Development versus 20th Century ‘Industrial’ Development

Communities are exploring locally-based entrepreneurship as part of a larger economic development strategy

21st Century Economic Development versus 20th Century ‘Industrial’ Development

Some communities are exploring locally-based entrepreneurship as part of a larger economic development strategy

Expansion and retention of existing industry are an increasingly important part of the economic development strategy

Asset Based Economic Development

Identifying and cataloging a community’s unique assets to attract new investment that is consistent with or complementary to those assets

Asset Based Economic Development

Existing industry – + suppliers, customers

Asset Based Economic Development

Existing industry – + suppliers, customers

Workforce – Talent

Asset Based Economic Development

Existing industry – + suppliers, customers

Workforce – Talent

Educational assets – Universities, K – 12 education, career centers

Asset Based Economic Development

Existing industry – + suppliers, customers

Workforce – Talent

Educational assets – Universities, K – 12 education, career centers

Infrastructure – Roads/interstate, water, sewer, electric, broadband

Asset Based Economic Development

Existing industry – + suppliers, customers

Workforce – Talent

Educational assets – Universities, K – 12 education, career centers

Infrastructure – Roads/interstate, water, sewer, electric, broadband

Quality of life

Asset Based Economic Development

Brown County/Nashville

Asset Based Economic Development

Brown County/Nashville

Steuben County – Northeast Indiana

Asset Based Economic Development

Brown County/Nashville

Steuben County – Northeast Indiana

Central Indiana – Life sciences, advanced manufacturing, logistics

Asset Based Economic Development

Glossary of terms & acronymsIEDC – Indiana Economic Development Corporation

LEDO – Local Economic Development Organization

REDO – Regional Economic Development Organization

TIF – Tax Increment Financing

Tax Abatement

EDGE Credits – Economic Development for a Growing Economy

Glossary of terms & acronyms

EDGE Credits – Economic Development for a Growing Economy

EDGE may be awarded for up to 100% of the projected payroll withholdings for the company’s Indiana project. These may be awarded up to 10 years.

Glossary of terms & acronymsBrownfields – Environmentally distressed land/property

Greenfields – Previously undeveloped land and/or ag land

SEF – Skills Enhancement Funds

Glossary of terms & acronymsSEF – Skills Enhancement Funds

Reimbursement of a company’s cost to train its Indiana workers. SEF is disbursed over a two-year period and is limited to 50% of a company’s eligible training expenses.