Fairmount Indigo Corridor: Job

Attraction and Retention

Presentation

July 15, 2015

Agenda

• Introductions

• Background and Context

• Outcomes and Impact

• Overview of Existing Environment

• Illustrative Tools and Policies

• Next Steps

• Discussion

2

Introductions

• LISC and TACC as conveners

• ICIC as technical advisor

• Steering Committee

– Inform development of incentive strategy

– Help advance implementation of incentives

3

Background and Context

• Need for strengthening argument for the Fairmount Indigo Corridor as a economic development corridor

• Need for increased in the number of local jobs

• Job attraction and retention only one component of comprehensive economic development

• Process is informed by previous studies and ongoing collaborations/networks

4

Background and Context

• Timeliness of this process – Ongoing work of Fairmount Collaborative, Network,

Transit Coalition to link transit equity and economic development

– Development of Boston Small Business Plan

– Increased focus in City on business development; new staff to be focused on industry/city interaction and attraction

– Ongoing development of EOHED Comprehensive Economic Development Plan

• The focus is on anchoring a place-based approach within new and existing programs

5

Outcomes and Impact

The job attraction and retention strategy will

result in new and expanded businesses in

underserved neighborhoods and more quality,

household-sustaining jobs for residents.

6

Outcomes and Impact

1. Incentive recommendations for both retail and industrial districts that can impact City and State policy development

2. Identification of employment sectors appropriate and in-line with community economic development objectives

3. Identification of specific corridor and regional businesses interested in expansion or relocation, e.g., “early successes”

7

Scope

• 9 month process including 3-4 steering

committee meetings

• Incentive strategy developed by pairing SC

recommendations, interview feedback, and

ICIC’s best practices

• Regular dialogue with residents and businesses

within Corridor

Setting Goals

May-July 2015

Initial strategy Development

July-Sept 2015

Strategy Refinement

Oct-Nov 2015

Finalization & Dissemination

Dec-Feb 2016

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Fairmount Corridor Policy Recommendation Development

• Analyze existing Corridor and regional business data

• Connect policy best practices to the Corridor

Identify best practices to inform policy recommendations

• Leverage Steering Committee and local intermediaries to identify key businesses

• Leverage findings from City of Boston’s Small Business Plan

Interview key local and regional employers to validate policy recommendations

• Based on information from interviews, estimate the number of businesses and jobs created from policy recommendations

Estimate impact of policy recommendations

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Overview of Existing Businesses

* Employment numbers include South Bay Center businesses

Source: infoUSA (2015); ICIC Analysis

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Newmarket:

1. Retail Trade*

2. Accommodation and Food

Services*

3. Construction

4. Wholesale Trade

Readville:

1. Manufacturing

2. Wholesale Trade

3. Construction

Retail and Service Corridor:

1. Health Care and Social

Assistance

2. Retail Trade

3. Educational Services

Roxbury:

1. Health Care and Social

Assistance

2. Educational Services

3. Retail Trade

Largest Employment Sectors along Fairmount Corridor

Examples of Available Policy Interventions

• Financial (e.g., tax

credits)

• Zoning

• Targeted economic

development areas

(e.g., Enterprise

Zones)

• Access to capital (e.g.,

grants, low-cost loans)

• Workforce development

• Business education &

training

• Networking & contracting

opportunities

• Economic analysis

(e.g., cluster analysis)

• Cluster initiatives

• Utilizing existing

infrastructure

• Local workforce

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Examples:

Relevant MA Examples:

• Newmarket Industrial-

Commercial

Neighborhood District

• BLDC small business loans

• MA Workforce Training Fund

• 10,000 Small Businesses

• Massachusetts Life

Sciences Center

Business Attraction, Retention and Expansion

Incentives Strategic Programs Competitive

Advantages

Business Attraction Strategy: Workforce Development Grant

TIFWorks Program, Chicago, IL

• TIFWorks grants range up to $5,000 per worker or $10,000 per business for various training

programs (e.g., technology, safety, language, etc.).

• TIFWorks funds are available to businesses located in 163 TIF districts in Chicago.

• TIFWorks assistance is provided through the Department of Housing and Economic

Development’s TIF program.

• World Business Chicago leads Chicago’s business and cluster growth

initiatives in Chicago. WBC utilizes multiple tools to help businesses

grow, including cluster growth initiatives, workforce development, and

financing and incentive programs for businesses.

• Started in 2002, Chicago's TIFWorks program provides funding for

workforce training programs in tax increment financing (TIF) districts

to improve the productivity of businesses and meet economic

development goals in targeted areas.

• The TIFWorks program is administered by the City of Chicago. WBC

connects businesses with the program. Workforce training programs are

conducted by nonprofit organizations and community colleges.

How it works:

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Business Attraction Strategy: Payroll Tax Exemptions

Community Benefit Agreements, San Francisco, CA

• Program permits businesses to exclude a portion of their payroll expenses from their payroll

expense tax base for up to six years between 2011 and 2019.

• Binding Community Benefits Agreement are reviewed and renewed annually.

• Businesses are required to participate in the City’s First Source hiring program.

• Growing technology companies were leaving San Francisco

because of higher operating costs relative to surrounding areas and

lack of available office space in the city.

• In 2011, San Francisco created the Central Market Street and

Tenderloin Area Payroll Expense Tax Exclusion program to

incentive businesses to remain in San Francisco while revitalizing

distressed neighborhoods. Businesses are required to negotiate

Community Benefit Agreements to mitigate negative effects of

relocating in neighborhood.

• CBAs are developed through a partnership between the

Administrator's Office, OEWD, Citizen's Advisory Committee for

the Central Market & Tenderloin Area, and local businesses,

residents, and community organizations.

How it works:

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Business Expansion Strategy: Anchor local procurement

Central Corridor Anchor Partnership, Minneapolis/St. Paul, MN

• CCAP is funded through foundation partners and each of the participating anchors.

• Procurement efforts look to grow or attract suppliers to the Corridor.

• Central Corridor College Fellowship program connects health care students with jobs at

anchor institutions.

• In 2014, the Green Line light-rail opened, connecting downtown

St. Paul and downtown Minneapolis. Community groups in lower

income neighborhoods along the route opposed the Green Line

due to concerns of negative impacts.

• Established in 2012, the Central Corridor Anchor Partnership

(CCAP) aims to unlock the transformative potential of the new

light-rail transit line to benefit the people and places closest to the

line.

• CCAP is a network of anchor universities and hospitals located

along the Green Line Central Corridor.

• Strategic initiatives of CCAP include increase local purchasing of

goods and services along the Central Corridor and connecting

local students and residents with Central Corridor jobs.

How it works:

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Setting Goals

May-July 2015

Initial strategy Development

July-Sept 2015

Strategy Refinement

Oct-Nov 2015

Finalization & Dissemination

Dec-Feb 2016

Next Steps

• Conveners will synthesize SC feedback

• ICIC to begin conducting interviews with

business, industry groups, and other

stakeholders

• Draft incentives to be shared at next SC

meeting

• Monthly email updates 15

Group Discussion

• General feedback on approach

• Alignment with existing collaborations

• Other questions?

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