ten strategies to add community value

Ten Strategies for Economic Development Pros to Add Community

Value

Mark BarbashExecutive Vice PresidentFinance Fundwww.linkedin.com/in/markbarbash

Inland Northwest Partners Ten Strategies to Build Community Value September 17, 2015

• Creation of a competitive advantage by bundling, combining, or packaging features and benefits that result in greater customer acceptance.

What is Value-Added:


• A deliberate economic and community development strategy that supports sustainability, economic stability & high quality of life in economic development activities

What is Value-Added Economic Development:


• This economic recovery is different from previous recoveries.

• Globalism, technology and demographics make this recovery different.

• Unemployment down, wages and family income stagnating, job elimination

• Community & economic development strategies should respond to this economic transition

Why Value Added Community Development is important now:


• Actionable: Specific policies for specific programs.

• Practical investment activities that are designed to leverage further growth …

• … and protect the health of the community.

• Fiscal health – community health – social health

• Not to the exclusion of other strategies … but additive to existing strategies

• Evolve your economic development strategies to respond to the new realities

What is Value-Added Community Development


• Tax incentive/abatement policies

• Capital investment policies

• Targeted marketing

• Active Business Retention/expansion Program

• Linking planning, zoning and economic development strategies

• Workforce Development coordination

Changing the Tools to Support Value Added Community Development

Build on Community Economic Strengths


Build on Community Strengths

• What are the industries and industry clusters that are strong in the region?

• What are the largest businesses and who do they do business with?

• What research & development concentrations exist in the region?

• What drives the regional economy: employment, wages, education, innovation


• Groups of related industries• Serve markets beyond the region in

which they are located. • Free to choose their location of

operation Highly concentrated in a few regions

• Exposed to competition from other regions.

• Tend to be higher wage industries

Traded Regional Cluster Strategy


Traded Regional Cluster Strategy

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Top Traded Clusters By Number of Jobs & Wages

Business Services

Financial Services

Distribution/Electronic

Aerospace/DefenseConstruction Products

Food Processing/MfgEducation/Knowledge

Insurance Services


Industry Cluster Strategy


• Specific Industry Analysis• Who are customers and suppliers?• Who are strategic partners?• Industry Association• Competitive issues• Common transportation, infrastructure,

workforce, technology issues• Link with Retention / Expansion /

Attraction / Workforce Strategies

Industry Supply Chain Strategy


Industry Supply Chain Strategy


Industry Supply Chain Mapping


Support Core Community Services


Support Core Community Services

• Businesses that meet the needs of neighborhoods and citizens

• Businesses that improve neighborhood and community stability

• Health Care

• Food and Shelter

• Human Services

• Strong connection with Place Based Strategy


• Industries that serve primarily local market• Prevalent in every region of the country.• A region’s employment in local clusters is

usually proportional to the population of The majority of a region’s employment comes from jobs in local clusters.

• Local clusters are tied to the regions in which they are located, they are not directly exposed to competition from other regions.

Support Core (Local) Community Services


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Health Services

Public Service

Retail Commercial Services

Financial

Motor Vehicles Parts / Services

Real Estate / Construction

Hospitality

Local Clusters Employment & Wages


Source: Larisa Ortiz

Basic Neighborhood Services


Support Businesses that Support the Community


• Utilize area workforce development for recruitment, training, skills development

• Active members of Chambers, Business Associations, community partnerships

• Support arts and culture: volunteers, contributions, United Way

• Make efforts to recruit & employ locally

• Internship & Apprenticeship opportunities



B (Benefit) Corporations


Social Enterprise


Develop an Investment Strategy that Recognizes the Importance of Place


Place Based Economic Development


• Build a “unique place” to live, work and raise a family”

• Capitalize on community assets to build around

• Connect people with the places they live

• Build assets in places: downtowns, Main Streets, neighborhoods, town squares

What is Place Based Economic Development?


What is Place Based Economic Development?

• Mixed Uses • Quality Public Spaces

• Transit Options • Housing Options

• Historic Structures • Arts and Culture

• Green Places • Link Urban and Rural

• Natural Resources • Broadband Enabled


Linking Local Clusters & Place Based


Place Based Collaborations


Support Retail as a Neighborhood

Revitalization Strategy

Retail as an Economic Development Strategy

• Retail is the most market based business development

• Competition is fierce, even locally, placing the economic developer in a tough position.

• Except…in a place based strategy trying to restore the economic viability of a community or neighborhood…

• … Basic retail services becomes a critical attraction for residents and visitors

• Revise Planning / Zoning

• Concentrate retail activity

• Designate unique nodes

- The Strip: Auto-oriented Retail

- Performance Row: Pedestrian oriented

- The Commons: Higher Density Housing

• Develop Appropriate Incentives

• Neighborhood Business Revitalization Strategy

Retail as an Economic Development Strategy

Healthy Food Retail as an Economic Development Strategy

Local Food System Development as an Economic Development Strategy


Support Businesses that Support their Employees

• Job Training, Skills Development & Job Path Development

• Internships & Apprenticeship Programs• Diversity Strategies• Competitive Wages• Benefits (Health care, pension, child care)• Community engagement in arts, culture,

recreation, human services

Support Businesses that Support their Employees

Number of Hours @ Minimum Wage Needed to Afford Average Rent

States with Active Apprenticeship Programs


Support Businesses that Invest in their Future

• Capital Investment Strategies• Research and Development• Technology Evolution• Constant Market Analysis• Job Training & Skills Development• Continuous Improvement



Change in Share of Patents by Industry

Patents per 100,000 Residents by Quartile


Encourage Balanced Growth Strategy

Mission of Balanced Growth:• Ensure adequate local government

revenue for basic public services• Balance of residential and job

development• Places to work proximate to places to live• Utilization of existing infrastructure for

growth

Encourage Balanced Growth Strategy

Fiscal Impact Analysis

Triple Bottom Line Analysis

What is the TOTAL all-in cost of a development project, including economic and environmental impact?

City of Boston ARRA Analysis


Invest in Improving the Quality of Life in the

Community

Invest in Community Quality of Life

Olneyville Contract: Providence, Rhode Island

Social Fabric Engage youth, immigrants, community events

Physical Fabric Beautification, Parks, safe streets & sidewalks

Economy Existing Businesses, connect job seekers

Health & Safety Crime and safety, health care

Community Organizations

Build strong neighborhood institutions, community services

Housing Mix of housing, foreclosure, parking


• Provide more transportation choices

• Promote equitable, affordable housing

• Enhance economic competitiveness

• Support existing communities

• Coordinate policies and leverage investment

• Value communities and neighborhoods

www.sustainablecommunities.gov

HUD Sustainability Communities Livability Principles


Support a Broad based Diversified Economy

• Balance of business types• Manufacturing, retail, commercial,

financial, insurance, services• Balance of Business Sizes: large to small• Range of Employment Opportunities• Entry level jobs and higher skilled jobs

• Job Training• Innovation & Entrepreneurship• International Trade / Export

What is a diversified economy:

Alberta Economic Diversity

Tools to Add Community Value


Tools to Build on Community Strengths

• Traded Cluster Mapping

• Supply Chain Mapping

• Business Retention and Expansion Program

• Industry Advisory Boards, Experts, Council

• US and International Recruitment


• Community Asset Mapping

• Attraction / Retention / Expansion Strategy

• Retail Gap Analysis

• Neighborhood Commercial Revitalization Strategy

• International Council of Shopping Centers

Tools to Support Core Community Services


• B Corporations

• Community Development Corporation

• Engagement in Nonprofit organizations and Foundations

• Social Enterprise

Tools to Support Businesses that Support the Community


• Use planning and zoning to encourage a balance of uses

• Support transit connections between jobs and residences

• Encourage walkable neighborhoods with sidewalks, pocket parks, “third place” amenities

• Identify strategically located vacant properties and sites for redevelopment

• Identify and improve connected job corridors

• Identify retail “nodes” to build around

• Consider entrepreneurial assets and connective assets

• Incubators, collaboration space

Tools to Advance Place Based Economic Development

• Zoning Overlays for Commercial Strips

• Retail market gap analysis

• Targeted vacant property acquisition strategy for retail corridor

• Financing/Grants for façade renovation, leasehold improvements

• Neighborhood Commercial Revitalization Strategy

Tools to Promote Retail as an Economic Development Strategy

• Stronger job training, apprenticeship programs

• Skills matching programs• Targeted incentives: grants, loans, tax

incentives• Matching charitable contribution campaigns

Tools to Support Businesses that Support their Employees

• Incubator & Accelerators• STEP Strategies• Community College /University STEM

Strategies• STEM in the High Schools• State Science and Technology Program

investments

Tools to Support Businesses that Invest in Their Future

• Triple Bottom Line Analysis• Fiscal Impact Analysis• Land Use Planning / Mixed Use Development

Standards• Development Limits• Sewer, water, utilities, police, fire, roadways

Tools to Encourage Balanced Growth Strategy

• Community Health Centers• ArtSpace – Art as Economic Development• Development Standards• Development Limits• Sewer, water, utilities, police, fire, roadways

Tools to Support Investment in Community Quality of Life

• Economic concentration analysis• Balance of small and large businesses• Improve connectivity through broadband• Identify market sector gaps• Regional analysis, planning and

implementation• Infrastructure investment

Tools to Suport A Broad-based Diversified Economy

QUESTIONS?

Mark Barbash, EVP, Strategic [email protected]

(614) 774-7599

THANK YOU!

mailto:[email protected]

ten strategies to add community value

Economy & Finance