Economic DevelopmentEconomic Development for a Healthy Community! for a Healthy Community!

League of Oregon CitiesPortland, Oregon 2009

By Dennie HouleBusiness Development OfficerOregon Business Development Department

Economic DevelopmentEconomic Development

The average citizen will probably say that economic development is an activity that is designed to bring new business to town.

What would your commissioners, council members or supervisor say?

What Is Economic Development? What Is Economic Development? Economic development, economic

development is fundamentally about enhancing the factors of productive capacity - land, labor, capital, and technology - of a national, state or local economy. (EDA)

Economic Development can be described in terms of objectives. These are most commonly described as the creation of jobs and wealth, and the improvement of quality of life. Economic development can also be described as a process that influences growth and restructuring of an economy to enhance the economic well being of a community …(IEDC)

What is Economic Development?What is Economic Development?

economic development as an organized effort ... to attract new business into an area or to encourage existing business to expand (Altus Group)

Economic Development ToolsEconomic Development Tools

Tax incentives Technical assistance Non-traditional

Financing Infrastructure and

zoning Industry Cluster

support

Workforce Development

Marketing assistance Networking and

political support Education K - Post

Graduate Advocacy

Economic Development Economic Development TechniquesTechniques Business Retention Business Expansion Business Recruitment Business Financing Workforce Development Infrastructure, Technical Assistance and

Permitting Marketing and Promotion Community Development

Economic Development Economic Development organization – The System organization – The System Federal Department of Commerce –

Economic Development Administration, Department of Agriculture, Etc.

State Agencies:Oregon Business Development Department

Regional AgenciesRegional Agencies

Economic Development Districts – supported by federal EDA

Local economic development organizations

Port districts and special districtsQuasi-governmental organizations –

development districtsWorkforce boardsPrivate development organizations

Business RetentionBusiness Retention

Love your existing businesses first!How do they feel about being in your

community? How are they doing?What do they need to be more successful?What is going on in their industry?Is there a cluster opportunity?

The Business Retention & The Business Retention & Expansion plan of workExpansion plan of workConfidential business visits – formatted to

understand company dynamicsIndustry forums to focus on business

topicsIndividual work-plan developed from

business visitsCluster and Consortium activities for

multiple companies in the region

Business RecruitmentBusiness Recruitment

Marketing your community to target industries outside your region that are likely to expand and/or relocate.

Remember that a company that is in your community is a potential recruitment target for another community down the road or from another state or country!

Know your target industries – The shotgun approach is ineffective!

Business RecruitmentBusiness Recruitment

Be part of a system – Don’t try to go it alone! Get networked in to the state and regional efforts.

Be prepared! Have a team in place that is already working with existing businesses.

Make sure your community is ready for new industry.

Make sure you are recruiting business your community wants!

Business FinancingBusiness Financing

Access to capital – The GAPLoan ratios, underwriting criteria, sources

& uses, the three C’s, cost of $ - and the list goes on!

Start-ups, entrepreneurs, fast growing companies, cyclical industries, non traditional industries, companies facing difficulties, etc.

Business FinancingBusiness Financing

State, regional and even local organizations with specific tools and purposes.

The money is not the problem but is a symptom!

Get to know the network and make the highest qualified referral possible! Make sure the client knows what to expect!

Workforce DevelopmentWorkforce Development

The workforce is getting older!New employee recruitment and

preparednessExisting employee skill upgrading to meet

new technology implementation and career advancement

Communicating with the educational systems

Infrastructure, Technical Infrastructure, Technical assistance and permittingassistance and permittingDoes your community have commercial &

industrial zoned properties that are served by utilities and roads?

How are businesses treated when they are “at the counter” with their project?

Do you have a business friendly permitting process?

What kind of technical assistance is available to expanding businesses?

Marketing and PromotionMarketing and Promotion

Don’t “go it alone” unless you are a powerhouse. Become part of a regional, connected strategy

Leverage every penny!Sell your strengths!Look for Low Investment – High Return

techniques

Community DevelopmentCommunity Development

Does you community have a vision?The Comprehensive Plan guides all!Is your zoning up to date for the times?Do your permitted activities match your

intentions?How educated in economic development

are your elected officials?Have you streamlined everything possible?

Community Development Community Development Economic Development Economic Development TechniquesTechniquesRedevelopment areas – Tax increment

financing techniquesScaled and fair System Development

Charges that are business friendlyPublic infrastructure investments that

create capacity adequate for business development

Become proactive in land development

Community Development Community Development Economic Development Economic Development Techniques, cont.Techniques, cont.Create a “One Stop” for permitting and

streamlineKeep current with flexible zoning and

multiple use possibilities including adaptive reuse of existing buildings

Funnel grant funding towards activities that benefit business development

It takes a village to grow a It takes a village to grow a business!business!Doing the best community development

work possible IS Economic development!Be Part of a team!Develop approaches that support economic

growth AND pays for itself!Become well versed in public financing

techniques that support industry

Where to Get More InformationWhere to Get More Information

Oregon Business Development Department - http://www.oregon.gov/OBDD

Google Economic Development techniques

www.mrsc.org/govdocs/WACTED-Learn.PDF Learning to Lead by Maury Foreman and Jim Mooney