guide prepared by: greater des moines economic development practitioners 2007 ed 101 economic...
TRANSCRIPT
Guide prepared by: Greater Des Moines Economic Development
Practitioners
2007
ED 101 ED 101 Economic DevelopmentEconomic Development
BasicsBasics
Economic Development Basics
Economic Development PartnersEconomic Development Partners
Elected officials Governmental staff (city, county and state) Economic development organizations Utilities Chambers of Commerce Neighborhood Associations Commercial real estate professionals Developers Educational Institutions Financial community Citizens
Economic Development Basics
Economic Development PartnersEconomic Development PartnersTraining GoalsTraining Goals
To understand the economic development process and how it works in the Greater Des Moines area.
To provide an overview of the basic concepts and principles of the economic development process.
To understand your role in the process
Economic Development Basics
Definition of Economic DevelopmentDefinition of Economic Development
Process that influences growth and restructuring of an economy to enhance the economic well being of a community. The desired result is creation of wealth for a region.
Economic Development Basics
Economic Development InfrastructureEconomic Development Infrastructure
Human Infrastructure Professional staff Partners
Local Product Land Available buildings Zoning Physical infrastructure (i.e. water, sewer, gas, electric, roads,
telecommunications, etc.) Business Climate Workforce
Economic Development Basics
Economic Development InfrastructureEconomic Development Infrastructure
Program of Work Marketing
Iowa Department of Economic Development (IDED) Greater Des Moines Partnership (GDMP) Counties Communities
Prospect Process Business Retention Legislative monitoring and influencing
Economic Development Basics
MarketingMarketing
IDED-markets Iowa on national and international level Sell Iowa Trips Trade Shows Advertising & Publications Web Site
GDMP-markets region on national and international level Industry Trade Shows Recruitment trips (industry targets, site selection consultants, and national
headquarters) Web Site Market research Site Selector events Principal Charity Golf Classic (formerly known as the Allianz) Feature Articles and Stories Publications and Collateral Material
Communities, Counties and Utilities-participate with GDMP and IDED in partnership
Maintain Location One Information System (LOIS) database with community data, buildings and sites
Trade Shows Community Tours Publications & Collateral Material Web Sites Events Speculative Buildings
Economic Development Basics
Prospect ProcessProspect Process
Site Selection Overview Process of elimination Risk aversion Confidentiality More than 15,000 local development groups competing for
100-200 major projects annually nationwide Site Selectors Use the Web
86% to familiarize themselves with community 85% gather preliminary location data 63% to find local contact information
Most new locations are in same region 60%-80% of growth is due to local existing business
expansion
Economic Development Basics
Prospect ProcessProspect Process
Stage 1 – Lead Generation Stage 2 – Response Stage 3 – Monitoring and Follow Up Stage 4 – Prospect Visit Stage 5 – Financial Packaging and Incentives Stage 6 – Negotiation and Decision
Economic Development Basics
Prospect ProcessProspect ProcessStage 1 – Lead GenerationStage 1 – Lead Generation
GDMP Lead Sources (2006)
27%
23%22%
14%
6%4% 4%
Direct from Company
Site Selectors
IDED
Communities
Developers/Realtors
Utilities
Referrals
Economic Development Basics
Prospect ProcessProspect ProcessStage 1 – Lead Generation Stage 1 – Lead Generation
Trend 2000-2006Trend 2000-2006
0%10%
20%30%40%
50%60%
70%80%
90%100%
2006 2004 2002 2000
GDMP Lead Sources (2000-2006)
Referrals
Utilities
Developers/Realtors
Communities
IDED
Site Selectors
Direct from Company
Economic Development Basics
Prospect ProcessProspect ProcessStage 2 - ResponseStage 2 - Response
Step One: GDMP receives lead Provides general regional information Identifies project parameters with client
Step Two: GDMP distributes lead to partners Request specific building, site, and community
information
Step Three: Communities, realtors, developers research local
assets (i.e. buildings, sites, infrastructure, zoning, etc.) Respond with requested information
Step Four: GDMP reviews and packages local responses GDMP provides other information such as workforce
data, financial incentives overview, completes consultant questionnaires, etc.
All information is compiled and submitted to prospect
Economic Development Basics
Project Representation
79 CDMC Prospect Inquiries in 2006
46 CDMC Property Searches in 2006 17 Site Searches
• Size Range: 2 to 800 acres• Median Size: 10 acres
14 Industrial Building Searches• Size Range: 10,000 sf to 425,000 sf• Median Size: 38,750 sf
15 Office Building Searches• Size Range: 10,000 to 120,00 sf• Median Size: 25,000 sf
Economic Development Basics
Prospect ProcessProspect ProcessStage 3 – Monitoring and Follow UpStage 3 – Monitoring and Follow Up
GDMP contacts the prospect to confirm information, answers additional questions, verifies timeline, etc.
Encourages a local visit to further promote area
Request visit to company headquarters
Timeline – this stage can last from one week to several years depending upon prospect
Economic Development Basics
Prospect ProcessProspect ProcessStage 4 – Prospect VisitStage 4 – Prospect Visit
GDMP coordinates the visit to showcase the Greater Des Moines area General overview of area Available building and sites – local officials are notified of specific
visits If requested, local economic development professionals arrange
meetings with local business executives, human resource directors, public officials, educational representatives, utility representatives, etc.
Economic Development Basics
Prospect ProcessProspect ProcessStage 5 – Financial Packaging and Stage 5 – Financial Packaging and
IncentivesIncentives
During this stage we may be competing with one or two alternate locations
All partners associated with the project are “at the table”
Financial Package Identify the controllable issues that could prevent the
company from choosing the region as the location (i.e. gap financing, return on investment, locational disadvantages, job training, infrastructure, etc.)
Create an initial incentive offering that minimizes the risk to the community and the company
Economic Development Basics
Prospect ProcessProspect ProcessStage 6 – Negotiation and DecisionStage 6 – Negotiation and Decision
Final Negotiations
Complete necessary applications and receive approvals (i.e. forgivable loan/loan funding, tax abatement and credits, job training, infrastructure improvements, etc.)
Announce Project!
Economic Development Basics
Prospect ProcessProspect Process
Stage 1 – Lead Generation Stage 2 – Response Stage 3 – Monitoring and Follow Up Stage 4 – Prospect Visit Stage 5 – Financial Packaging and Incentives Stage 6 – Negotiation and Decision
Economic Development Basics
CDMC Results1999 to 2006
New Locations: 64
Expansions: 145
New/Retained Jobs: 12,145
Sq. Footage: 9,018,992
Capital Investment: $1.56 billion
Economic Development Basics
Greater Des Moines CollaborationGreater Des Moines Collaboration
Economic Development Basics
Business Retention and ExpansionBusiness Retention and Expansion
Executive Call Program Meet with executives to learn about their products and
processes Build relationships Identify expansion opportunities or companies at risk Learn about issues that keep executives “up at night” Provide resources
Economic Development Basics
Business Retention and ExpansionBusiness Retention and Expansion
Corporate Headquarter Visits Identify how the Des Moines metro locations compete within
the corporate structure Establish ourselves as a resource for future business projects Build relationships
Economic Development Basics
Business Retention and ExpansionBusiness Retention and Expansion
Local Business Expansion Focus on community specific project Can be brick and mortar, employment growth, equipment
investment Work as team to identify opportunities and resources Provide pertinent information to influence company decision
May be exploring several avenues within a corporate structure
Fair Play Agreement
Economic Development Basics
AppendixAppendix Confidentiality Agreement
Prospect Check List
Greater Des Moines Fair Play Agreement
PDI Code of Ethics
Economic Development Basics
AcknowledgementsAcknowledgements
This guide is developed as a joint project between local economic development practitioners in the Des Moines metro area.
Aquila IncorporatedAnkeny Economic Development Corporation
City of Ankeny, Economic Development City of Des Moines, Economic DevelopmentCity of Waukee, Community Development
City of West Des Moines, Community Development Eastern Polk Regional Development
Greater Dallas County Development AllianceGreater Des Moines Partnership
Grimes Chamber and Economic DevelopmentJohnston Economic Development CorporationMidAmerican Energy EconomicAdvantage
Warren County Economic Development